TerrAscend Strengthens Partnership with Precision Extraction Solutions
Exclusive agreement will boost production capabilities for TerrAscend's labs in New Jersey and Pennsylvania
NEW YORK and TORONTO, May 5, 2020 /CNW/ - TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) ("TerrAscend" or the "Company"), a leading North American cannabis operator, today announced an expanded partnership with Precision Extraction Solutions ("Precision"). Through a newly signed agreement, Precision, a Detroit-based company with an extensive portfolio of cannabis extraction, refinement, and processing technologies, will provide state-of-the-art equipment for TerrAscend's current and future product lines.
Precision is designing a multi-solvent lab in TerrAscend's New Jersey facility, currently under construction in Boonton Township. This new lab will be one of only a few of its kind in the United States. The dual-capacity facility will allow TerrAscend, already known for its best-in-class and high-quality brands such as Valhalla, Funky Farms, Ilera and State Flower, to produce a wide range of popular and innovative products, from medical grade vaporizer oils to live resins and various concentrate formats.
Additionally, Pennsylvania based Ilera Healthcare, a wholly-owned subsidiary of TerrAscend, is boosting its production capabilities with new Precision X10 lab extraction systems. The Company will upgrade its ancillary and post-processing equipment provided by Precision, as well. This agreement also provides TerrAscend with special terms and expedited access to spare part packages.
"Our supply chain is more robust and agile than ever with the addition of Precision's patented organic solvent-based primary extraction equipment and excellent technical support," said Greg Rochlin, CEO of Ilera Healthcare. "Precision delivers quality products and tailors specific procedures and account management strategies to meet our requirements as we continue to scale our business."
"We are pleased to partner with a best-in-class operator like TerrAscend that puts quality and integrity first," said Michael Lewis, VP of Business Development for Precision Extraction Solutions. "While other operators began scaling back last year, TerrAscend has continued to move forward and expand in their key markets. We are grateful to work closely with their talented team and are proud to be an integral part of their growth."
The Canadian Securities Exchange ("CSE") has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
TerrAscend provides quality products, brands, and services to the global cannabinoid market. As the first North American Operator (NAO) with scale operations in both Canada and the US, TerrAscend participates in the medical and legal adult-use market across Canada and in several U.S. states where cannabis has been legalized for therapeutic or adult use. TerrAscend was the first cannabis company with sales in the U.S., Canada, and Europe. TerrAscend operates a number of synergistic businesses, including: The Apothecarium, an award-winning cannabis dispensary with several retail locations in California; Arise Bioscience Inc., a manufacturer and distributor of hemp-derived products; Ilera Healthcare, Pennsylvania's premier medical marijuana cultivator and processor; and Valhalla Confections, a manufacturer of premium cannabis-infused edibles. TerrAscend holds a cultivation permit in the State of New Jersey and is pending approval for a vertically integrated medical cannabis operation with the ability to operate up to three Alternative Treatment Centers. Additionally, TerrAscend holds a Medical Cannabis Processor License in the State of Utah. For more information, visit www.terrascend.com.
Caution Regarding Cannabis Operations in the United States
Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the U.S. Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable U.S. federal money laundering legislation.
While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve TerrAscend of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against TerrAscend. The enforcement of federal laws in the United States is a significant risk to the business of TerrAscend and any proceedings brought against TerrAscend thereunder may adversely affect TerrAscend's operations and financial performance.