TerrAscend Corp. announced in a press release the signing of a definitive agreement to acquire the assets of Ratio Cannabis LLC in Goshen Township, Ohio, for $10.3 million. Upon closing, this acquisition will be TerrAscend’s initial entry into Ohio, the Company’s sixth state.
“Entering Ohio and expansion in the Midwest has long been a priority for us. With the acquisition of this well situated and profitable dispensary, we will enter our sixth U.S. state through an accretive transaction at an attractive price,” stated Jason Wild, Executive Chairman of TerrAscend. “This acquisition is a great first step to becoming a leader in this emerging adult-use market.”
Ratio Cannabis is a high-performing dispensary in Ohio which is well situated in Goshen Township with no competition within a 20-mile radius. TerrAscend expects to achieve significant revenue growth at this location as the state expands its implementation of adult-use sales and as regulation for additional product categories are permitted. This acquisition will increase TerrAscend’s U.S. retail footprint to 38 dispensaries across six states. The Company intends to become a market leader in Ohio through the acquisition of additional dispensaries in the future.
Under the terms of the agreement, Ohio Dispensing 1, LLC, a subsidiary of TerrAscend USA, has the option to purchase, subject to certain conditions, the assets of Ratio Cannabis. The closing of the transaction is subject to standard closing conditions, including exercise of the option and regulatory approval from the Division.
Strike Partners acted as the exclusive financial advisor to Ratio Cannabis in connection with the transaction.