Mr. Jason Wild reports

TERRASCEND STRENGTHENS LEADERSHIP POSITION IN NEW JERSEY WITH CLOSING OF AUNT MARY'S TRANSACTION

Terrascend Corp.'s consolidated entities have closed on the previously announced transaction with Aunt Mary's Dispensary LLC, located in Hunterdon county, New Jersey. Aunt Mary's is Terrascend's fifth retail location in New Jersey and will be immediately accretive to Terrascend on an EBITDA (earnings before interest, taxes, depreciation and amortization) and free cash flow basis.

"Aunt Mary's generates more than $10-million (U.S.) in annualized revenue today, and we see meaningful opportunities to enhance sales and profitability through the integration of our premium brand portfolio," said Jason Wild, executive chairman of Terrascend. "We are excited to welcome the Aunt Mary's team to the Terrascend family."

In June, 2026, Terrascend entered into an agreement with Aunt Mary's and the other parties named therein for total consideration of $9-million (U.S.), comprising (i) $3-million (U.S.) in the form of a five-year unsecured convertible debenture bearing interest at 6.0 per cent per annum (subject to the company's right to pay interest in kind at the interest rates provided for and in accordance with the terms and conditions of the debenture) for an option to purchase 35 per cent of Aunt Mary's and (ii) $6-million (U.S.) payable in cash upon exercise of the option.

The transaction conforms to New Jersey's regulatory framework, which facilitates investment opportunities for diversely owned businesses. Upon exercise of the option and additional conditions, the transaction will allow the company to fully consolidate the business in its financial results and increase Terrascend's consolidated retail footprint to a total of 21 dispensaries across five U.S. states and Canada.

About Terrascend Corp.

Terrascend is a leading Toronto Stock Exchange-listed cannabis company with interests across the North American cannabis sector, including operations in Pennsylvania, New Jersey, Maryland, Ohio and California through Terrascend Growth Corp. and retail operations in Canada. Terrascend operates The Apothecarium and other dispensary retail locations, as well as scaled cultivation, processing and manufacturing facilities in its core markets. Terrascend'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 The Apothecarium, Cookies, Kind Tree, Legend, State Flower, Wana, Cuue, One and Valhalla.

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