TORONTO, October 15, 2018 – TerrAscend Corp. (CSE: TER) (“TerrAscend” or the “Company”), today announced that its subsidiary TerrAscend Canada Inc. (o/a Solace Health) (“TerrAscend Canada”) has entered into a multi-year cultivation agreement with PharmHouse Inc. (“PharmHouse”), a joint venture between Canopy Rivers Inc. (TSXV: RIV) (“Canopy Rivers”) and the principals and operators of a leading North American greenhouse produce company.
Under the terms of the agreement, PharmHouse will grow and supply cannabis to TerrAscend Canada from an existing 1.3 million square foot greenhouse (“Facility”), located in Leamington, Ontario. Once fully licensed, the production of flower, trim and clones from 20% of the dedicated flowering space at the Facility will be made available to TerrAscend Canada.
TerrAscend Canada may provide proprietary genetic strains to PharmHouse and help oversee production in conjunction with their operators and quality assurance professionals. Cultivation is anticipated to commence in 2019, subject to receipt by PharmHouse of all applicable regulatory licenses and approvals.
Michael Nashat, President and Chief Executive Officer, stated, “This agreement provides TerrAscend with access to high quality greenhouse grown cannabis and significantly advances our strategy in focusing on the production of premium products and standardized dosage forms, consistent with GMP standards. Partnering with PharmHouse further offers TerrAscend large-scale cultivation expertise and production capabilities.”
About TerrAscend Corp.
TerrAscend Corp. is a biopharmaceutical and wellness company that is committed to quality products, brands and services for the global cannabinoid market. On October 9, 2018, TerrAscend announced its intentions to expand into the US market. The Company provides support to patients and consumers through its wholly-owned subsidiaries, TerrAscend Canada Inc., o/a Solace Health, a licensed producer of medical cannabis under the Access to Cannabis for Medical Purposes Regulations, Solace Health Network Inc., a clinical support program and education platform led by healthcare professionals and Solace Health, the online marketplace for the licensed producer. The Company will also participate in the adult-use market in Canada following legalization through direct and indirect supply agreements in several provinces. The Company holds a partnership with leading researchers in Ascendant Labs, a cannabis biotechnology and licensing company committed to the continuous improvement of the cannabis plant.
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 US. Cannabis remains a Schedule I drug under the United States Controlled Substances Act, making it illegal under federal law in the US to cultivate, distribute or possess cannabis in the US. Furthermore, financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the US may form the basis for prosecution under applicable US federal money laundering legislation.
While the approach to enforcement of such laws by the federal government in the US 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 the Company of liability under US federal law, nor will it provide a defense to any federal proceeding which may be brought against the Company. Following any investment made by the Company in operations in the US, enforcement of federal laws in the US will be a significant risk to the business of the Company and any proceedings brought against the Company thereunder may adversely affect the Company’s operations and financial performance.
Forward Looking Information
This news release contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking statements in this press release may be identified by the use of words such as, “may”, “would”, “could”, “will”, “likely”, “expect”, “anticipate”, “believe, “intend”, “plan”, “forecast”, “project”, “estimate”, “outlook” and other similar expressions. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment; and the availability of licenses, approvals and permits.
Although TerrAscend believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because TerrAscend can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking statements. The statements in this press release are made as of the date of this release. TerrAscend disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. TerrAscend undertakes no obligation to comment on analyses, expectations or statements made by third-parties in respect of TerrAscend, its securities, or financial or operating results (as applicable).