TerrAscend Announces Joint Venture for a Proposed Drug Preparation Premises at its Facility
TORONTO, July 18, 2017 – TerrAscend Corp. (CSE: TER) (“TerrAscend” or the “Company”), is pleased to announce that under a newly created subsidiary, Solace Rx Inc. (“SolaceRx”), the Company will commence construction and application for licensing of a Drug Preparation Premises at its Mississauga facility. Subject to receipt of required approvals and licenses, the business of SolaceRx will be comprised of the reconstitution, dilution, preparation and/or combination of drug preparations for health care practitioners and institutions. The addition of SolaceRX will provide TerrAscend with a non-cannabis revenue stream and the opportunity to work directly with healthcare stakeholders to enable them to deliver customized formulations in meeting patients’ needs.
SolaceRx will be operated as a joint venture (“JV”) with Theomar Ltd. and, its owner, Mike Hannalah (together the “Partner”), a leader in the drug formulation compounding business. Under the terms of the JV, TerrAscend and its Partner will form SolaceRx with each party initially holding a 50% ownership interest. Under the terms of the JV, TerrAscend has agreed to fund certain expenditures as approved by TerrAscend’s Board and has also provided its Partner with the right to cause TerrAscend to purchase predetermined percentages of the Partner’s ownership in the business at pre-determined milestones based on SolaceRx’s EBITDA over the next approximately seven years. TerrAscend has also agreed to provide Solace RX with space at its Mississauga facility as a part of its contribution to the JV.
Mr. Hannalah is a compounding pharmacist and President of Smith’s Pharmacy (“SP”) in Toronto, Ontario. SP has been operating for over 80 years and is a leader in sterile and non-sterile compounding. SP specializes in bio-identical hormone therapy, pain management compounding, intravenous therapy, nutritional supplementation, pediatric compounding, chelation and mesotherapy, fertility compounding, cosmetic and dermatological compounds and dental preparations. Mr. Hannalah is an active member of multiple pharmacy associations such as the Ontario Pharmacists Association and Professional Compounding Centers of America. He is also a member of the Canadian Health Food Association, among other associations and governing bodies.
“The formation of SolaceRx allows TerrAscend to leverage its vast network and expertise in the pharmaceutical space.” commented Dr. Michael Nashat, Co-Founder and Chief Operating Officer of TerrAscend. “We are excited to commence the development of a strategic, complimentary operation to our existing businesses. SolaceRx will allow TerrAscend to broaden its position by providing non-medical cannabis drug preparations to meet the needs of practitioners and health care institutions, while increasing its ability to generate revenue from its target markets.”