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TerrAscend Agrees to Acquire California Cannabis Brand

ME Staff

Canadian firm TerrAscend (CSE: TER) (OTCQX: TRSSF) has signed agreements to purchase ABI SF LLC, which operates a Bay Area cannabis cultivation facility and owns the State Flower brand.

State Flower

State Flower is a California-based cannabis producer operating a licensed facility in San Francisco, Calif. State Flower is focused on a craft approach to cultivation using genetics at an Envirocann certified facility.

State Flower is known for its ultra-premium cannabis flower and is currently sold through dispensaries in California and Nevada, including The Apothecarium.

Acquisition

TerrAscend has agreed to initially acquire 49.9% of the equity of State Flower for US$2.85 million from the conversion of a previously issued convertible debenture and subject to regulatory approvals. The company also extended a line of credit of up to US$3.75 million to State Flower for cultivation facility improvements to expand production capacity.

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The parties intend to begin the regulatory approval process for the full purchase of State Flower under a securities purchase agreement. TerrAscend also has future rights to use the State Flower brand pursuant to a license agreement.

TerrAscend has agreed to purchase the remaining 50.1% equity of State Flower for consideration based on future revenue over a predetermined 12-month period. The transaction is subject to regulatory approvals by various local and state authorities, as well as certain customary closing conditions.

The post TerrAscend Agrees to Acquire California Cannabis Brand appeared first on Market Exclusive.