CAN (ON): TerrAscend and PharmHouse settle termination of offtake agreement

The Ontario Superior Court of Justice approved a settlement agreement between TerrAscend Canada and PharmHouse, with respect to an offtake agreement dated October 25, 2018. 

Pursuant to the original Offtake Agreement, PharmHouse was required to sell to TerrAscend Canada, cannabis from 20% of its licensed dedicated flowering space in Leamington, Ontario under a supply agreement with mutual obligations.

The Settlement Agreement provides that TerrAscend make a one-time purchase of a specific quantity of cannabis that was grown under the Offtake Agreement for a set price per gram, and for a one-time cash payment to PharmHouse for full and final satisfaction of any claims or obligations between the Company and PharmHouse. Both payments are immaterial to TerrAscend and the Company plans to monetize the purchased cannabis.

“We are pleased to have settled and terminated this agreement with PharmHouse,” said Jason Ackerman, CEO and Executive Chairman of TerrAscend. “The resolution of this matter in a cost-effective manner further de-risks our Canadian operations.”