There were difficult times when almost no deals were completed. Still, cannabis companies continue to fill up for mergers and acquisitions as realistic stock valuations and the prospect of legalization in the US attract buyers to a sector that has been decimated by oversupply and other problems. TerrAscend is one such company not looking to fall behind in the race, and now says it has made the necessary moves to complete the purchase of KISA Enterprises MI, LLC (Pinnacle).
North America’s leading multi-state cannabis operator (MSO) had previously announced plans to acquire the Michigan-based dispensary chain operator and related real estate assets of KISA Holdings, which has now been fully completed. The move was for a total consideration of $28.5 million. Based on terms of sales and EBITDA, this recent acquisition is undoubtedly a positive for the cannabis company.
Having completed this process, the MSO will now own six dispensing licenses, five of which are already in operation, specifically in the cities of Addison, Buchanan, Camden, Edmore and Morenci. With the addition of Pinnacle to the purchasing portfolio, the company now expands its retail footprint to 17 in Michigan and 32 nationwide.
“We are excited to strengthen our Michigan footprint with the acquisition of Pinnacle,” said Jason Wild, Executive Chairman of TerrAscend. “This acquisition strategically expands our presence along Michigan’s border, to areas that previously had limited access to Gage and Cookies branded retail locations and products. We look forward to introducing our premier brands to new customers and solidifying our position as a top-tier retailer in the state while continuing to scale and improve margins and profitability.”
The newly acquired dispensaries will go through a rebranding process to adapt them to the Gage or Cookies style. As expected, each dispensary will carry the full selection of products from both recognized brands, including, but not limited to the Cookies, Lemonnade, Runtz, PowerzzzUp, Minntz and Grandiflora lines.