TerrAscend enters Ohio marijuana market via $10.3 million acquisition of retailer
TerrAscend Corp., a multistate operator with an office in Canada, said it is entering the Ohio marijuana market through an acquisition.
The company signed a definite agreement to buy Ratio Cannabis, which operates a retail outlet in Goshen Township, for $10.3 million, according to a Wednesday news release.
The deal includes $5 million in cash, $1.3 million in TerrAscend common shares and a seller’s note for $3.9 million carrying 6% interest with a two-year maturity.
Under the terms of the agreement, Ohio Dispensing 1, a TerrAscend subsidiary in the United States, has the option to purchase Ratio Cannabis assets, the release noted.
The transaction is expected to be immediately accretive on an EBITDA (earnings before interest, taxes, depreciation and amortization) and cash flow basis, according to the MSO, which has offices in Toronto and King of Prussia, Pennsylvania.
“Entering Ohio and expansion in the Midwest has long been a priority for us,” TerrAscend Executive Chair Jason Wild said in a statement.
“This acquisition is a great first step to becoming a leader in this emerging adult-use market.”
The Ohio market, which launched a recreational marijuana market in August, is projected to eclipse $1 billion in sales in 2025 and hit $1.5 billion-$2 billion by the end of 2027, according to an MJBizDaily forecast.
The Ratio Cannabis acquisition will increase TerrAscend’s U.S. retail footprint to 38 stores in six states, the release noted.
Strike Partners was the exclusive financial adviser to Ratio Cannabis in connection with the transaction.
TerrAscend shares trade as TSND on the Toronto Stock Exchange.