Mr. Jason Wild reports

TERRASCEND REACHES FOUR DISPENSARY CAP IN MARYLAND WITH CLOSING OF HERBICULTURE ACQUISITION

Terrascend Corp. has closed its previously announced acquisition of Herbiculture Inc. (doing business as Herbiculture), a medical dispensary in Maryland. With this transaction, Terrascend has reached the four-dispensary cap in the state. With the recent launch of adult-use sales in Maryland on July 1, 2023, the company believes that Herbiculture is well positioned to achieve substantial sales and profit growth. This transaction is expected to be immediately accretive to Terrascend on an EBITDA (earnings before interest, taxes, depreciation and amortization) and cash flow basis.

Located in an approximately 3,100-square-foot location in Burtonsville, Herbiculture has a loyal customer base and a net revenue run rate of approximately $4.3-million (U.S.). Terrascend expects to achieve significant sales and margin improvement at this location with the recent launch of adult-use sales in the state and by offering a complete selection of its high-quality brands, including Kind Tree, Gage, Cookies and Wana. With the close of the transaction, Terrascend's retail footprint increases to 38 dispensaries nationwide.

"With this transaction Herbiculture has become Terrascend's fourth dispensary in Maryland, which is a key step in our strategy to become a market leader in this state. We are very excited about this closing, as reaching the four-dispensary mark also coincides with the recent start of adult-use sales in Maryland. We expect Herbiculture and our other Maryland dispensaries to drive considerable revenue growth and profitability for Terrascend going forward," said Jason Wild, executive chairman of Terrascend.

About Terrascend Corp.

Terrascend is a leading Toronto Stock Exchange-listed cannabis company with interests across the North American cannabis sector, including vertically integrated operations in Pennsylvania, New Jersey, Maryland, Michigan and California through Terrascend Growth Corp. and retail operations in Canada. Terrascend Growth operates The Apothecarium and Gage dispensary retail locations as well as scaled cultivation, processing and manufacturing facilities in its core markets. Terrascend Growth's cultivation and manufacturing practices yield consistent, high-quality cannabis, providing industry-leading product selection to both the medical and legal adult-use markets. The company owns or licenses several synergistic businesses and brands, including Gage Cannabis, The Apothecarium, Cookies, Lemonnade, Ilera Healthcare, Kind Tree, Legend, State Flower, Wana and Valhalla Confections.

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