earnings Archives - Green Market Report

Debra BorchardtDebra BorchardtSeptember 18, 2019
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5min600

The Supreme Cannabis Company, Inc. (FIRE.TO) (SPRWF) reported net revenue of $19 million for the fourth quarter ending June 30, 2019, a 90% increase sequentially. The net loss for the quarter was $421,000. Supreme Cannabis’ core recreational flower brand, 7ACRES, accounted for the company’s marked increase in revenue, growing 443% year-over-year from $3.5 million in Q4 2018 to $19 million in Q4 2019.

In the fourth quarter, 7ACRES continued to transition sales from its legacy wholesale contracts to recreational sales channels, increasing revenue from recreational markets by 51% between Q3 2019 and Q4 2019.

“We end fiscal 2019 as one of the few Canadian cannabis businesses building sustainable operations and valuable brands, reporting $3.2 million in Adjusted EBITDA for the fourth quarter,” said Navdeep Dhaliwal, CEO of Supreme Cannabis. “Our positive Adjusted EBITDA and significant revenue growth in the fourth quarter reflects the rapid scale of our 7ACRES business and continued strong sales pricing for our brands from the provinces as we transition our premium supply to recreational sales channels.”

The company said in its statement, that with its partnership with Khalifa Kush Canada ULC,it expanded its product offerings beyond whole flower with the launch of premium KKE Oil. The company’s KKE Sensi Star Oil was the first oil launched under the KKE brand. It will create other ultra-premium products for recreational consumers under the KKE brand, including pre-rolls, derivative products, and flower.

Anticipating the next phase of cannabis regulations and the legalization of derivatives products, the company prepared to enter the cannabis extracts category through its partnership with Pax Labs, Inc. (“PAX”). Pursuant to this partnership, 7ACRES became one of only four license holders to supply cannabis pods for the Pax Era vaporizer in Canada. Supreme said it will benefit from PAX’s strong brand recognition, reputation, and market-leading vaporizer technology, selling more than 500,000 Era devices and over one million devices in the flower vaporizer category.

Looking Ahead

Supreme Cannabis said it is projecting net revenue of between $150 million and $180 million in fiscal 2020. The company also said it expected to be positive Adjusted EBITDA1 on aggregate over the course of the year. 7ACRES’ is to complete its transition from a wholesale business to premium consumer brand by third-quarter fiscal 2020, with complete in-house packaging capabilities for all flower products under the 7ACRES’ brand.

“With strong confidence in our core business, we began fiscal 2020 with two accretive acquisitions that expanded our addressable markets, provided valuable licensed operating assets and focused expertise,” Mr. Dhaliwal added. “As we integrate these businesses and realize further efficiencies from our scaled 7ACRES operations, we expect all of our brands to meaningfully contribute to the revenue we have forecasted for fiscal 2020. Amidst the noise of this new marketplace, Supreme Cannabis has taken a strategic and disciplined approach to develop a focused business with clear pillars: best-in-class infrastructure, top consumer brands, advanced intellectual property, and high-impact and capital-light exposure to developing international markets.”

 


StaffStaffAugust 30, 2019
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4min5160

California-based cannabis dispensary company Harborside Inc.  (CSE: HBOR) delivered its results for the second quarter ending June 30, 2019, with revenues up 20% to $12.7 million. The results were driven by 6.5% growth in retail revenue and 208% growth in wholesale revenue.

Harborside reported a net loss for the second quarter of $15.6 million versus last year’s net loss of $4.8 million for the same time period. It was attributed primarily to a $15.4 million provision for potential tax penalties under 280E. The company had fought the 280e tax battle, which would have benefited the entire industry had they won. Unfortunately,  the issue remains tied up in the courts.

In addition to that, the company had $3.6 million of non-recurring expenses related to its reverse takeover transaction and other one-time items, offset by a non-cash gain on derivative liabilities of $7.2 million due to translation on exercise prices of options and warrants, and conversion prices of debentures, denominated in other foreign currencies.

“The second quarter was a milestone for Harborside. On June 10, we listed on the CSE after completing the RTO and raising capital. I am pleased that in our first quarter as a public company, we reported solid revenue growth and were profitable on an Adjusted EBITDA basis and that we now rank among the top 20 US-listed cannabis companies by revenue,” said Harborside CEO Andrew Berman.

He went on to say, “That said, the Board and our executive team are not at all satisfied with the significant loss of market capitalization in our first months as a public company. While the overall market is down, what upsets us is that Harborside is down even more despite our installed base of revenue and solid growth prospects. We think we are significantly undervalued, and to demonstrate that firm belief, today we also announced that we are implementing a normal course issuer bid under which we expect to buy up to 5% of our subordinate shares.”

Deals Called Off

As of August 29, Harborside decided that it would not move forward with the purchase among “FLRish Retail Management & Security Services LLC and Airfield Supply Co., Inc. and its owner, in light of the company’s current share price and the substantial cash component of the purchase price which management has determined are not in the best interests of shareholders.”

In addition to that, Harborside said it also will not move forward with “The Agris Acquisition as contemplated by the Agris Agreement, in light of the principal owner’s demand for an increase in the purchase price and other terms which in management’s judgment make the transaction not in furtherance of the Company’s goals or strategy or otherwise in the interests of the Company’s shareholders, and given the Company’s already substantial capacity to produce high-quality cannabis at its Salinas facility at significant scale.” The company went on to say that Menna Tesfatsion, the founder and principal owner of Agris Farms, would not be joining Harborside as Chief Operating Officer.

Berman did give a forecast for 2019, “We are targeting $55 to $57 million of revenue and to achieve positive Adjusted EBITDA. We believe that the combination of solid topline growth and margin expansion for a cannabis asset trading at 1.5x revenue makes for a highly attractive investment opportunity.” 


Debra BorchardtDebra BorchardtAugust 30, 2019
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5min3820

California-based cannabis edible company PLUS Products Inc. (CSE: PLUS) (OTCQB: PLPRF) delivered its unaudited financial results for second-quarter ending June 30, 2019, with revenues climbing 125% to $3.6 million over last year’s revenues of $1.6 million. The company experienced a 10% increase sequentially over the first quarter of 2019. The net loss for the quarter was $5.3 million versus last year’s net loss of $1.1 million for the same time period.

Gross margins jumped 20% in the second quarter to $0.7 million as compared to $0.2 million or 14% in 2018 for the second quarter as the company improved operating efficiencies.

“Our high product standards, growing brand recognition and the launch of our new line of mints drove strong demand for our products this quarter, cementing our position as a top-selling cannabis brand in California,” said Jake Heimark, co-founder & Chief Executive Officer of the Company. “For the 5th consecutive quarter, PLUS “Uplift” was the #1 best-selling cannabis product in California in dollars sold, according to data from BDS Analytics.”

Operating expenses jumped to $5.3 million in the quarter up from $1.3 million as the company hired key management personnel.  PLUS said that it continues to invest in sales, operations and corporate personnel to support current future growth opportunities, as well the costs of being a public company.

Heimark addressed the new hires saying, “We also expanded our management team by appointing Jon Paul, a veteran senior corporate finance executive and certified public accountant, as Chief Financial Officer, and Marc Seguin, former president and CMO of Popchips, as Chief Revenue Officer, to lead our sales strategy. Mr. Seguin is one of the first executives to leave the food industry for a non-hemp, cannabis touching company and we are proud to be attracting such high calibre talent to the Company as we lay the framework for continued growth.”

Looking Ahead

PLUS Products cash balance rose to $34.1 million at the end of June up from $22.4 million as of December 31, 2018. The company raised $23.68M from the sale of convertible debentures and as a result of warrant exercises in the first six months of 2019. The company launched a new line of mints and is planning an expansion into Nevada by partnering with TapRoot Holdings. PLUS gummies are expected to be available in the state at some point in the second half of 2019.

“Looking ahead to the second half of 2019, we are implementing several initiatives to drive our strategic growth plan, including ramping distribution of our new PLUS Mints line into more dispensaries in California, initiating sales of our gummies in Nevada supported by a comprehensive sales and marketing campaign in both states, and launching new SKUs. Beyond these initiatives, the company is actively exploring entry into additional markets beyond California and Nevada. We see this as a key growth lever as we work to build a national brand, and are confident in our ability bring the winning formula we have developed in California to new markets,” concluded Mr. Heimark.

During the quarter the stock was uplisted from the OTCQB to the OTCQX. The stock was lately trading at $3.07, above its 52-week low of $2.52.

 


Debra BorchardtDebra BorchardtAugust 28, 2019
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3min3120

Green Thumb Industries Inc.  (CSE: GTII) (OTCQX: GTBIF) reported that its second-quarter revenue increased 228% to $44.7 million for the period ending June 30, 2019, over last year’s $13.6 million.  Revenue grew 60% over the first quarter of 2019. The company said that the revenue growth was driven by organic growth across GTI’s consumer products and retail businesses, strategic acquisitions and increased store traffic.

Still, GTI delivered a net loss of $22.2 million versus a net loss of $9.7 million in the first quarter. The loss was attributed to a decrease in value from a variable note receivable in other income and debt-related interest expenses.

“We are pleased to report another solid quarter of positive yet disciplined momentum with record revenue and positive adjusted operating EBITDA as our strategic plan delivers on operating efficiencies from scale. Continued execution of key priorities such as the closing of Integral Associates, accelerated store openings, and expanded distribution of our brand portfolio sets us up well for the future,” said GTI Founder and Chief Executive Officer Ben Kovler. 

Expenses Rise

The company saw a heavy increase in total operating expenses to $32.5 million versus $12.1 million for the same period last year and $26.1 million in the first quarter. The company said that increased headcount contributed to the rising expenses as the company grow and also non-cash expenses related to stock-based compensation of $6.3 million for the quarter.

In May, the company closed on a $105.5 million senior secured non-brokered private placement of notes. GTI said it plans to use the proceeds for general working capital purposes, strategic growth initiatives and to retire existing debt.

Balance Sheet

As of June 30, 2019, GTI had cash and cash equivalents of $135.8 million and long-term liabilities of $153.4 million, plus $96.3 million in total debt.

“We are deep in the chapter of maximizing the levers in our business to drive long-term operational performance that delivers value for our shareholders and the communities in which we operate, ” Kovler continued. “We are focused on optimizing our wholesale and retail businesses, integrating our acquisitions, and further strengthening compliance across the organization.”

 


Debra BorchardtDebra BorchardtAugust 28, 2019
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6min2890

SLANG Worldwide Inc. (CNSX: SLNG) delivered its financial results in Canadian dollars for the second quarter ending June 30, 2019, with revenue increased sequentially by 44% to $7.2 million and a big jump over last year’s $440,000 for the same time period. More importantly, Slang reported a net income of $17.5 million in the quarter versus a net loss of $13 million for the same time period in 2018. An even bigger accomplishment sequentially with a net loss of $16.1 million in the first quarter.

Revenue Plans Revised Down

Still, the company revised its outlook downward from its previously estimated $130-$160 million to a more conservative $70-$100 million.  Canada’s vape business was pushed back from October to mid-December, significantly affecting Slang’s vape plans. The company also said that it has decided to focus on growth in mature markets where our brands are currently performing well, versus Massachusetts and Michigan which have been growing much more slowly.

“These markets have been developing at a slower pace than anticipated and are currently facing supply constraints. While management believes these markets offer significant longer-term opportunities for the SLANG brands, further investment in growth initiatives in the current environment would put pressure on margins and profitability.” The company also said it plans to delay the launch of new products.

“We saw significant momentum across our business and delivered strong growth in revenue and unit sales in Q2 over the previous three months. Through each deal and initiative we announced in the quarter, we adhered to the capital-light model that we believe delivers the best value for our shareholders,” said SLANG CEO Peter Miller. “Global cultural, political and commercial tailwinds represent a huge organic growth opportunity for our brands. We will responsibly scale into this opportunity, continuing to focus on building a great team and the right assets to efficiently and competitively deliver our products to market. We continue to see strong organic growth opportunities for the remainder of 2019 and beyond, and remain optimistic about the outlook for the business.”

The company noted that its current increase in revenue reflected the inclusion of a full quarter of operations, sequential growth in Nevada and Oregon, positive changes in product mix, the initiation of sales of the Firefly 2+ vaporizer as well as the Company’s first sales in Florida and Puerto Rico.

Additional highlights from the company were as follows:

  • .1 million branded units sold — Branded unit volumes have increased by 16% over Q1 2019 following the start of sales in Florida, and growth in Nevada and Oregon.
  • Nearly 74 million branded servings (average of 800,000+ servings per day) — Branded servings grew by 45% in the quarter versus Q1 2019. Percentage growth in branded servings significantly outpaced growth in branded units as product mix shifted towards higher volume form factors.
  • 2,600+ retail stores across 12 states selling SLANG’s branded products — SLANG commenced sales in Florida during the quarter and announced several agreements to initiate sales in additional high-quality cannabis markets. The Company will continue to leverage its extensive distribution network and corporate development activity to grow its business through the balance of 2019.

 


Debra BorchardtDebra BorchardtAugust 27, 2019
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5min4232

iAnthus Capital Holdings, Inc. (CSE: IAN)(OTCQX: ITHUF) delivered solid financial results for the fiscal second-quarter ending June 30, 2019 with revenues increasing 100% sequentially to $19.2 million from $9.6 million in the first quarter and easily whipping last year’s $256,000 for the same time period.

The company’s second-quarter net loss of $9.3 million was a considerable improvement over the adjusted net loss of $16.5 million in the first quarter and much better than last year’s net loss of $35.4 million for the same time period.

The first half of 2019 has been an exciting time for team iAnthus, and I want to thank all of our employees, nearly 700 strong, for all of their hard work.  We have integrated the MPX and iAnthus businesses, and the team effort is beginning to show in our results. MPX products are now carried in three states in over 110 stores and we’ll be adding CaliforniaMassachusetts, and Florida later this year,” said Hadley Ford, CEO of iAnthus. “We continue to generate operational efficiencies without limiting growth.  This is evidenced by our 35% sequential revenue growth, expanding gross margins and limited incremental G&A expenses.”

Expenses Under Control

While other cannabis companies seem to spend with abandon, iAnthus expense kept a sharp eye on its general and administrative expenses which only increased to $5.7 million in the second quarter from $4.1 million in the prior quarter. With 700 employees now, the salaries and benefits expenses increased to $8.1 million in the second quarter from $6.1 million in the first quarter. The adjusted gross margin for the quarter was 52.4%, up from 23.4% in the first quarter and the adjusted gross profit of $10.1 million, up 347% from $2.2 million in the prior quarter.

iAnthus noted that its eastern region revenue increased to $10.2 million, up 143% from the prior quarter and the western region revenue increased to $9.0 million, up 67% from the prior quarter. The company now has eight dispensaries in Florida. It is a wholesaler to 21 dispensaries in Massachusetts and expects to open a dispensary there by the end of the year. There are three dispensaries in Maryland and expansion plans for New Jersey and New York.

Ford added, “Since opening our first Florida dispensary in December 2018, we have grown our market share to 3.5% and we are the third highest in the state in terms of THC volume per store.  These results in Florida show what we can bring to other greenfield markets for iAnthus like New York and New Jersey. In Massachusetts, we have made significant progress toward opening our first adult-use store in Worcester, and this fall will mark the launch of our new Be. store brand with the opening of our Brooklyn flagship store.”

Cash On Hand

The company has cash and cash equivalents of $30.5 million, an increase of $642.6 million (or 382%) in total assets from year-end 2018.

“As always, reducing our cost of capital remains a focus.  Our recently announced commitment for up to $50 million Senior Secured financing from Torian Capital, once closed, will move us forward on that front,” said Ford.

The stock was recently trading at $2.53, down from its 52-week high of $7.27.


Debra BorchardtDebra BorchardtAugust 27, 2019
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5min2610

Cannabis investing company Canopy Rivers Inc.  (TSXV: RIV), (OTC: CNPOF) reported its unaudited financial results for the first quarter ending June 30, 2019, with an operating income of $2.7 million. However, expenses in the quarter totaled $5.8 million leading to a net loss of $2.9 million. The company also said it expects to recognize its share of net losses during the remainder of the fiscal year.

$3.7 million or approximately 64% of the total expenses for the quarter were due to share-based compensation. The company said that “A significant portion of this non-cash expense relates to options granted to non-employees, which occurred at an early stage in the company’s growth and requires remeasurement each period. Other operating expenses, which include consulting and professional fees and other general and administrative expenses, were $2.0 million, representing an increase from last year due to the build-out of the company’s management team and employee base and enhanced public company compliance and regulatory costs.”

The income was mostly derived from royalty, interest, and lease income generated from the following: royalty and debenture agreements with Agripharm, Greenhouse Juice, JWC, and Radicle; a lease agreement with Spot Therapeutics Inc.; and a shareholder loan agreement with PharmHouse; as well as a $1.5 million net increase in the fair value of certain financial assets that are reported at fair value through profit or loss. Canopy Rivers also noted that the income was partially offset by its $1.0 million share of loss from its equity method investees, which includes its common stock shares in Canapar Corp., Radicle, and PharmHouse.

“In Q1 2020, we made several exciting investments in plant sciences and cannabis brands, two areas that we think are primed for real growth in the cannabis sector,” said Narbe Alexandrian, President and Chief Executive Officer of Canopy Rivers. “In addition to our new investments, as lifecycle investors, it was also rewarding to see so much positive news coming from our portfolio companies this quarter. From PharmHouse entering into a significant supply agreement with Canopy Growth to TerrAscend becoming, to our knowledge, the first and, so far, only cannabis company with sales in Canada, the U.S., and the European Union, our portfolio companies were busy creating significant value.”

After The Quarter Close

Canopy Rivers said that it has received conditional approval to graduate to the Toronto Stock Exchange. TerrAscend received an amendment to its license from Health Canada allowing for the sale of cannabis oils, which it will do through its online medical sales platform, Solace Health. TerrAscend also announced the signing of a definitive agreement to acquire Ilera Healthcare, a vertically-integrated cannabis cultivator, processor, and dispensary operator in Pennsylvania, and commenced sales to Europe through its German distribution partner, becoming the first and only cannabis company with sales in Canada, the U.S., and the European Union.

“We continue to maintain financial focus and discipline while looking to seize on exciting opportunities during a period of operational ramp-up in our portfolio and the cannabis sector more broadly,” said Eddie Lucarelli, Chief Financial Officer of Canopy Rivers. “While some of our financial results are linked to the public markets and therefore subject to volatility, we believe that several factors – including significant business catalysts within our portfolio, operational improvements that translate into increased production at our royalty investees, and an operating expense base that is low by cannabis sector standards – position us well to create value for our shareholders in the long term.”

Canopy Rivers stock was lately trading at $1.79, near the bottom of its 52-week range of $1.70 to $7.30.


Debra BorchardtDebra BorchardtAugust 26, 2019
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3min4090

Latin American cannabis company Khiron Life Sciences Corp. (TSXV: KHRN)(OTCQB: KHRNF) stock slid on news of the company’s second-quarter earnings. Khiron delivered a net loss for the three months ending June 30, 2019, of $10.6 million or $0.11 per share versus last year’s net loss of $6.2 million causing the company stock to drop by over 4% to lately trade at $1.15.

Khiron reported that its revenues of $2.2 million came from the sale of services at its clinics and sale of its cosmeceutical products, both of which began in the fourth quarter of 2018. The company said that revenues were in line with expectations and gross profits were consistent with the first quarter of 2019.

“We are pleased to report significant progress during the Q2 financial reporting period, including revenue generation, expansion of our Kuida cosmeceutical retail network, a growing and more profitable patient base at our ILANS clinics, closing of a $28.75 million bought deal and commencement of full operations at our completed Colombia lab facilities,” said Alvaro Torres , Khiron CEO and Director.

The company also delivered an adjusted EBITDA loss of $7.7 million for the second quarter, which was $2.7 million higher than last year and was attributed to the “growth of the business and readiness to grow in multiple countries.” In addition, Khiron said that it incurred $1.1 million in research and development costs in the second quarter of 2019 which were related to operating costs at the company’s cultivation site.

Mr. Torres added, “We are about to commence commercialization of our CBD strains of cannabis for medical purposes and subsequent to the quarter have received TSXV approval to bring Kuida to the U.S. market. As we strengthen our position in other jurisdictions, including Europe, to be ready for business as regulations open for us, our leadership, research, medical and operational teams continue to be fully focused towards our mission to be a Latin American cannabis leader with global growth.”


Debra BorchardtDebra BorchardtAugust 26, 2019
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4min2190

Golden Leaf

Golden Leaf Holdings Ltd. (CSE:GLH) (OTCQB:GLDFF) reported that its second-quarter total revenue was $4.3 million as compared to $3.7 million for the same three-month period in 2018 ending June 30.  The company said that the 17% quarter-over-quarter increase was due to strong wholesale revenue streams in Oregon and flower sales from our Canadian operations.

The company also delivered a net loss of $3.4 million or $0.01 per share, compared with a net gain of $3.2 million or US$0.01 per share for Q2 2018. The company noted that last year’s net income benefited from favorable changes in the fair value of warrants and debt liabilities of $7.3 million, versus this year’s unfavorable change of $0.1 million for the second quarter.

Gross profits were $1.7 million or 40% of total revenue for Q2 2019, compared with $0.9 million or 26% of total revenue in Q2 2018.  Gross profit improvement in Q2 2019 over prior year period is consistent with the gross profit of 41% of quarterly revenues in Q1 2019.

“The strong gross margin run-rate in the first six months of 2019 is primarily due to significant cost reductions and utilization of improved inventory controls and processes,” said John Varghese, Interim CEO, Golden Leaf Holdings. “Our increased focus on operational excellence and building out our executive team is starting to show results that we believe are sustainable for growth in the coming quarters.”

Operating expenses were $4.0 million for Q2 2019 compared with $4.6 million for Q2 2018. Q2 2019 operating expenses included $0.3M in wages and benefits related to headcount reductions and severance.

Adjusted EBITDA loss dramatically decreased to $1.5 million for Q2 2019, compared with a loss of $3.5 million for Q2 2018. As of June 30, 2019, Golden Leaf had approximately $5.2 million in cash, compared with $12.3 million at December 31, 2018.

James E. Wagner

Ontario-based  James E. Wagner Cultivation Corporation (TSX VENTURE: JWCA)(OTCQX: JWCAF) reported third fiscal quarter revenue of $749,000, up 32% sequentially from $566,000, and compared to $3,500 in the same year-ago quarter. The net and comprehensive loss was $434,000 or $(0.01) per share in fiscal Q3 2019, improving 87% sequentially from $3.4 million or $(0.04) per share, and improving 91% from $4.6 million or $(0.06) per share in the year-ago quarter.

“Q3 was a milestone quarter for JWC,” said President and CEO, Nathan Woodworth. “Revenue grew 32% sequentially and we celebrated our first harvest from our new JWC2 facility, allowing us to produce record amounts of our clean, consistent cannabis using our unique aeroponic technology.

“In fact, we achieved a 28% increase in actual yield per plant versus our previously reported estimated yields, and we expect this to be sustainable. We estimate the additional yield alone could boost revenue by at least $25 million annually once JWC2 is fully operational.

“Initial sales from the JWC2 harvest began following the end of the third quarter. However, right before the end of the quarter, we secured the additional license from Health Canada to add 11,000 sf. of flowering space, bringing the total to 22,000 sf. at JWC2. We anticipate initial sales generated by this additional capacity to begin in fiscal Q1 2020. Within the next couple of months, we expect to receive a license to double this capacity again to a total of 44,000 sf.”

Cash and equivalents at June 30, 2019, totaled $3.8 million, compared to $2.3 million at March 31, 2019, and $18.0 million at June 30, 2018. The decrease in cash is attributable to cash used in operations.


Debra BorchardtDebra BorchardtAugust 22, 2019
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4min2450

Toronto-based TerrAscend Corp. (CSE: TER)(OTCQX: TRSSF)  reported that its second-quarter revenue rose 21% sequentially to $17.6 million from $14.6 million for the first quarter. A huge jump for the quarter ending June 30, 2019 over last year’s $0.01 million in 2018.

The company raised its revenue guidance from $135 million which was projected in April to $141 million for 2019. On a pro forma basis, TerrAscend said it generated $42 million of revenue in the second quarter or over $168 million on an annualized basis.

The company still delivered a net loss of $21.5 million, which was much higher than last year’s net loss of $5 million. It is almost double the loss in the first quarter of $11 million.

“The company continues to experience strong growth in demand.  We are pleased to be in the position to raise our revenue guidance only four months after initially providing it.  We are seeing a substantial acceleration in sales growth in the third quarter and expect this to continue through the fourth quarter.  In Canada, our Haven Street Premium Cannabis brand is resonating with consumers. This sales growth will be driven by licensing of expanded space, scaled-up production, increased automation, improvements in operational efficiencies and continued growth in the adult-use, medical and international markets,” said Michael Nashat, TerrAscend’s CEO. “We continue to focus on improving margins, which will be fueled by cost effective strategic supply agreements that provide access to bulk dry flower and extract-based cannabinoids while maintaining TerrAscend’s standards for quality and consistency. We currently have nine existing bulk supply partners and several additional new partners coming online in the near term.”

Since The Quarter Closed

TerrAscend said that since the quarter closed it received its oil sales license and has begun sales in Canada. The company signed an agreement to purchase Ilera Healthcare, one of five vertically-integrated cannabis cultivator, processor, and dispensary operators in Pennsylvania. Ilera plans to open two additional dispensary sites in Pennsylvania within the year. TerrAscend made its first shipment to Germany through its sales and distribution agreement with iuvo Therapeutics GmbH, making it the first and only global cannabis operator with sales in the US, Canada, and the EU.

“TerrAscend continues to increase its global footprint with the build-out of our New Jersey operations, construction of multiple dispensaries in California, and the upcoming acquisition of Ilera Healthcare,” said Matthew Johnson, President TerrAscend Corp. & TerrAscend USA. “We are looking forward to opening new dispensaries in California, Pennsylvania and New Jersey in the coming months.  We are proud to have brought Valhalla Confections and The Apothecarium California into our family of companies this quarter with the closing of those transactions. Additionally, we are excited for the upcoming close of The Apothecarium Nevada.  Importantly, our recent and pending acquisitions are all margin accretive and generate strong cash flow.”



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