TerrAscend Archives - Green Market Report

Debra BorchardtMay 19, 2021
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TerrAscend Corp.  (CSE: TER) (OTCQX: TRSSF) reported financial results for its first quarter ending March 31, 2021 with sales increasing 106% year-over-year to $53.4 million versus last years $25.9 million for the same time period. TerrAscend attributed the increase to cultivation capacity expansions in PennsylvaniaNew Jersey, and California as well as five new dispensaries opened during 2020. Sales jumped 8% sequentially as a result of capacity expansion in Pennsylvania and the initial ramp-up of the operations in New Jersey. This slightly missed consensus estimates according to Seeking Alpha which was $54.4 million.

Net losses were cut significantly in the first quarter to $12.7 million from last year’s net loss of $87 million or the same time period. The company said that the net losses were largely impacted by a loss on the fair value of warrants of $5 million and an unrealized foreign exchange loss of $3 million, along with income tax expense of $10 million, financing, and other expenses of $7 million, share-based compensation of $4 million and depreciation and amortization, inclusive of depreciation and amortization in cost of goods sold, of $4 million. The net loss per share increased to ($0.08) from last year’s ($0.07).

“In Q1, we drove strong revenue growth, margin expansion, and cash generation by continued focus on operational excellence, disciplined cost control, and effective allocation of capital,” said Jason Wild, Executive Chairman of TerrAscend. “I’m pleased with the strong results our team has delivered to begin the year.”

In addition to cutting losses, TerrAscend also reduced its expenses. In the first quarter, G&A expenses were $15.8 million, representing 30% of revenue, a decrease from 42% of revenue for the same time period last year. Sequentially though, G&A expenses increased from 23% in the fourth quarter of 2020. The company said that approximately half of the increase was related to one-time legal and severance costs while the remainder was related to planned investments in personnel, systems, and other capabilities to enable future growth. The company is comfortably sitting on Cash and cash equivalents of $234 million as of March 31, 2021, versus $59 million as of December 31, 2020, demonstrating the strong balance sheet position to support its growth initiatives.

Mr. Wild added, “Looking ahead to the rest of the year, there are strong operational tailwinds helping our business as we continue to see the benefits from recently completed cultivation expansions, and the addition of retail locations in New JerseyPennsylvania, and Maryland.”

Guidance Raised

TerrAscend is raising its full-year guidance to $300 million versus the previous guidance of $290 million and Adjusted EBITDA is expected to exceed $128 million versus previous guidance of $122 million. The outlined its state by state plans for the year as follows:

  • In Pennsylvania, TerrAscend said it will benefit from increased cultivation capacity completed in late 2020, as well as, the recent acquisition of KCR, which increased its dispensary footprint to six locations.
  • In New Jersey, sales from its 40,000 square foot greenhouse and 80,000 square foot indoor cultivation facilities are expected to ramp up throughout 2021. TerrAscend’s Phillipsburg, New Jersey dispensary achieved its first full quarter of sales in the first quarter of 2021, a second dispensary opened in Maplewood, and the company plans to open a third dispensary later this summer.
  • In Maryland, sales will benefit from the contribution of the recently acquired HMS Maryland business.
  • In California, TerrAscend will benefit from a full quarter of sales from the recently expanded State Flower cultivation facility which has increased the annual production capacity of super-premium craft flower by 500%. The Company’s California retail footprint will benefit from the two Apothecarium locations in Berkeley and Capitola which opened in the second half of 2020. Both locations continue to ramp up and the overall business continues to recover from the easing of COVID restrictions in the state.
  • In Canada, the company expects to see positive contributions to sales and profits with its newly streamlined product portfolio and optimized cost structure.

Finally, the company remains on track to become a U.S. filer with the United States Securities and Exchange Commission (SEC) by the end of 2021 and is preparing to meet the requirements necessary for its securities to be traded on a national U.S. exchange should such an event become permissible by U.S. law.


Debra BorchardtMarch 23, 2021
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TerrAscend Corp.  (OTCQX: TRSSF) reported financial results for its fourth quarter and year ending December 31, 2020. Net sales for TerrAscend increased 152% to $65 million in the fourth quarter of 2020, as compared to $26 million in the fourth quarter of 2019. Net sales increased 28% sequentially. The net loss for the fourth quarter of 2020 was $109 million, largely impacted by a net increase in fair value of warrant and derivative liability of $124 million and a revaluation of contingent consideration of $5 million.

For the full year of 2020, the company reported net sales of %198.3 million versus 2019’s net income of $84.9 million. The net loss was trimmed to $154 million for 2020 versus 2019’s net loss of $219 million. TerrAscend said it continued to expand organically through an increase in cultivation capacity in Pennsylvania and California, the first sales into the New Jersey market, the continued growth and ramp-up at its three retail stores in Pennsylvania as well as two new store locations in California.

“In Q4, we drove strong revenue growth, margin expansion and cash generation by focusing on operational excellence, disciplined cost control, and effective allocation of capital,” said Jason Wild, Executive Chairman of TerrAscend. “I’m pleased to see how our team has executed in the quarter.”

Mr. Wild added, “Looking at our growth plans for 2021, we are well-positioned to continue our momentum.  The business is firing on all cylinders and we are only now just beginning to realize the benefits of our recently completed investments.  Sales from facility expansions in PennsylvaniaNew Jersey, and California are just starting to come to market, our acquisition in Maryland is expected to close imminently, and two additional retail stores are set to open in New Jersey .”

Outlook

TerrAscend said in a statement that it is raising its full-year 2021 guidance to exceed the high end of previously communicated ranges.  Additionally, the company is converting guidance into US dollars due to the anticipated change to USD reporting currency from CAD in the first quarter of 2021. TerrAscend expects full-year 2021 net sales to exceed $290 million and Adjusted EBITDA to exceed USD $122 million. TerrAscend said its 2021 outlook is driven by the company’s emphasis on organic growth through expansion in high-quality, limited license markets while continuing to maintain tight control on costs.

New Jersey

The company has big plans for the state of New Jersey. It received a permit to dispense medical cannabis at the first New Jersey dispensary in Phillipsburg. The company completed its second phase of the New Jersey 140,000 sq ft cultivation and manufacturing facility. It received a permit in New Jersey allowing for processing, extraction and manufacturing of cannabis products.

Sales from the Company’s 40,000 square foot greenhouse and 80,000 square foot indoor cultivation facilities are expected to ramp throughout 2021. TerrAscend’s Phillipsburg, New Jersey dispensary will achieve its first full quarter of sales in the first quarter of 2021 and the Company plans to open two additional dispensaries in the state in the second quarter and third quarter of 2021.

CEO Is Out

TerrAscend also announced that Jason Ackerman is stepping down from his role as CEO and Executive Chairman of the Company effective March 23Jason Wild, current Chairman of the Board, will assume the position of Executive Chairman with the senior management team reporting directly to him.  Additionally, Ed Schutter, current board member, has been appointed Lead Independent Director.

“On behalf of the entire team, I’d like to thank Jason Ackerman for his contributions as CEO and Board Member during his time with TerrAscend,” said Jason Wild, Executive Chairman. “Unfortunately, there were differences in philosophy over management style and culture, and the Board and I decided it is in the best interest of the company for us to part ways. We wish him the best in all his future endeavors.”

Richard Mavrinac, board member commented, “As the only TerrAscend Board member who pre-dates Jason Wild’s start as Chairman and lead investor in 2017, I have witnessed firsthand how he has shaped and grown TerrAscend into the innovative and profitable multi-state operator that it is today. With an extremely talented team in place and some of the best operational assets in the industry, I have every confidence that Mr. Wild will continue to lead the company to exciting new heights in his new and expanded role as Executive Chairman.”


Debra BorchardtFebruary 19, 2021
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TerrAscend Corp.(OTCQX: TRSSF) announced preliminary financial results for its fourth quarter and full-year ending December 31, 2020. The fourth-quarter net sales grew 28% sequentially to $65 million and 152% year-over-year. TerrAscend said it will host a scheduled conference call to discuss its 2020 results and provide updated 2021 guidance on March 23rd, 2021.

“Our fourth-quarter results demonstrate robust sequential revenue growth and continued expansion of EBITDA margins, which reflect the strong fundamentals of our business,” said Jason Ackerman, CEO and Executive Chairman of TerrAscend. “During the quarter, we realized sales from key expansion projects in Pennsylvania, New Jersey, and California, that together with our pending entrance into the Maryland market, position the company for continued growth in 2021.”

The company is estimating that full-year net sales will be $198 million and adjusted EBITDA will be $60 million. This is more than what the company had guided in November when TerrAscend said it was increasing its full-year 2020 guidance to at least $196 million in net sales and at least $54 million of adjusted EBITDA. At that time, the company said its outlook was driven by its emphasis on organic growth through expansion in high-quality, limited license markets while continuing to maintain tight control on costs. TerrAscend’s sales and profits in Pennsylvania are expected to continue to scale following its recently completed 25% cultivation expansion. In New Jersey, sales from the company’s greenhouse and indoor cultivation facilities began in November and are expected to ramp throughout 2021.

Outlook

TerrAscend reiterated its 2021 guidance for net sales of $360-380 million and adjusted EBITDA of $140-160 million.

In November Ackerman said, “We continued to build out our footprint in the northeast, including completion of an additional 25% cultivation expansion at our Pennsylvania facility in Q3, which began selling into the market in November. In New Jersey, where I believe we will be a major player, sales from our newly operational cultivation facility and our first retail location in Phillipsburg are expected to begin in the coming days. I look forward to realizing the full benefit of our substantially larger cultivation and manufacturing capacities across our system, including our recently announced Maryland acquisition, to further accelerate our revenue and adjusted EBITDA growth in Q4 and beyond.”


StaffDecember 11, 2020
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Ayr Strategies

Ayr Strategies Inc. (OTCQX: AYRWF) closed on its previously announced offering of 12.5% Senior Secured Notes that will raise $110 million for the company. Ayr said it plans to use the proceeds from the issuance of the Notes, in addition to cash from the proceeds of in-the-money warrant exercise and cash from operations, to fund capital expenditures and the cash portion of pending and potential future acquisitions. Aur upsized the offering from the originally planned $75 million.

“This is an unprecedented time for Ayr. We are in the excellent position of being one of the few MSOs for whom capital is readily available, which is a major strategic advantage for us as we expand and grow. We were very pleased with the reception in the market for our corporate credit. Our premier debt offering, which was upsized nearly 50% from our initial size of $75 million due to substantial demand, combined with the proceeds from our in-the-money warrants and the cash we generate every day from operations, give us a war chest of over US$150 million in cash on our balance sheet. Our announced M&A pipeline is fully financed and we are in a great position to continue to invest in our current operations while we explore other opportunities for expansion,” said Jonathan Sandelman, Ayr’s CEO.

Canopy Growth

Canopy Growth Corporation  (NASDAQ: CGC) and Arise Bioscience Inc., a wholly-owned subsidiary of TerrAscend Corp. (OTCQX: TRSSF) engaged only in the legal sale of CBD products,  announced they have entered into a loan financing arrangement in the amount of $20 million pursuant to a secured debenture. In connection with the Loan, TerrAscend has issued 2,105,718 common share purchase warrants to the company. TerrAscend and Canopy Growth have had a long relationship with each other. Canopy Growth initially co-invested in TerrAscend in November 2017. On November 30, 2018, Canopy Growth announced the completion of a restructuring transaction with TerrAscend pursuant to which TerrAscend restructured its share capital by way of a plan of arrangement under the Business Corporations Act (Ontario). Subsequently, in March 2020, Canopy Growth loaned C$80.5 million to TerrAscend Canada Inc.

TerrAscend’s management continues to perform very well in high-growth, competitive markets. With this additional loan into TerrAscend’s Arise business unit, we are confident the team will continue to execute at a high level and that they are well-positioned to drive strong value creation for Canopy shareholders,” said David Klein, CEO, Canopy Growth.

Jason Ackerman, Chief Executive Officer and Executive Chairman of TerrAscend added, “I’d like to thank the Canopy Growth team for their ongoing support and investment as we scale our operations. I’m proud to consider them partners and look forward to continuing to execute on the opportunity ahead.”


Debra BorchardtNovember 19, 2020
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TerrAscend Corp.  (OTCQX: TRSSF) reported financial results for its third quarter ending September 30, 2020, with net sales of $50.9 million versus $47 million in the second quarter. It was almost double last year’s $26.8 in sales for the same time period in 2019. The company delivered a net loss of $17.5 million, which was slightly higher than last year’s third-quarter net loss of $17.3 million.

The company did note that its net income for the quarter was $12.7 million, a positive result for the first time in company history.

“We continued to build out our footprint in the northeast, including completion of an additional 25% cultivation expansion at our Pennsylvania facility in Q3, which began selling into the market in November,” said Jason Ackerman, CEO and Executive Chairman of TerrAscend. “In New Jersey, where I believe we will be a major player, sales from our newly operational cultivation facility and our first retail location in Phillipsburg are expected to begin in the coming days. I look forward to realizing the full benefit of our substantially larger cultivation and manufacturing capacities across our system, including our recently announced Maryland acquisition, to further accelerate our revenue and adjusted EBITDA growth in Q4 and beyond.”

Increased Guidance

TerrAscend said it is increasing its full year 2020 guidance to at least $196 million in net sales and at least $54 million of adjusted EBITDA. TerrAscend is also providing first-time guidance for 2021 saying it expects net sales of $360-380 million and adjusted EBITDA of $140-160 million for the full year.

The company said its outlook is driven by its emphasis on organic growth through expansion in high-quality, limited license markets while continuing to maintain tight control on costs. TerrAscend’s sales and profits in Pennsylvania are expected to continue to scale following its recently completed 25% cultivation expansion.” In New Jersey, sales from the Company’s greenhouse and indoor cultivation facilities are expected to commence this month and ramp throughout 2021. TerrAscend’s Phillipsburg, New Jersey dispensary is expected to open in the coming days, with plans to open two additional dispensaries in the state in the first half of 2021.”

Gross Margin Increase

Gross margins increased to 59% in the quarter versus 18% for the same time period in 2019 and improved over the second quarter’s 56%. The company attributed the sequential increase in gross margin to a higher mix as well as improved yields and lower cost per pound from the Pennsylvania operations. “Additionally, the turnaround of the Canadian operations has contributed to this sequential improvement.”

The company has been cutting costs delivering a third-quarter G&A expense of $13.7 million, representing 27% of net sales. This was lower than the second quarter’s expenses amounting to 33% of net sales and 45% of net sales in the 2019 third quarter. This strong leverage is a result of tight control of costs combined with continued robust revenue growth.

Cash and cash equivalents, including restricted cash, were $45 million as of September 30, 2020, compared to $6.9 million as of September 30, 2019, and $75 million as of June 30, 2020.

The stock is nearing its 52-week high of $8.20 as it was lately selling at $8.02.


Debra BorchardtNovember 9, 2020
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Canopy Rivers Inc. (OTC: CNPOF) today released its unaudited condensed interim consolidated financial statements in Canadian dollars and acknowledged taking a $112 million hit for its PharmHouse investment.  The total comprehensive loss for the quarter was $87.0 million. On a positive note, its investment into TerrAscend has appreciated implying an investment value of $214 million.

The company reported that its royalty, interest, and lease income (before provisions for credit losses) was $4.1 million for the quarter. It included income from its various royalty, convertible debenture, and loan agreements, among other items. Other comprehensive income was $23.4 million, net of tax, for the quarter, which included a net increase in the fair value of financial assets of $27.4 million attributed to the positive change in the fair value of the investment in TerrAscend. TerrAscend’s share value increase from $2.87 on June 30, 2020, to $9.75 as of the close of markets on November 6, 2020.

Offsetting this income was a provision for credit losses of $9.9 million for the quarter, which was primarily related to interest accrued on the company’s $40.0 million shareholder loan to PharmHouse Inc. of $8.9 million. Operating expenses were $1.6 million for the quarter, compared with $6.2 million for the same period last year. For the quarter, Canopy Rivers reported a net operating loss of $7.4 million.

PharmHouse

Canopy Rivers owns 49% in the joint venture of PharmHouse, which was formed in May 2018. The company partnered with Canopy Growth Corporation (CGC) and TerrAscend Canada Inc. which provided strong support for the company’s significant investment in PharmHouse’s automated production facility, as well as its guarantee of the PharmHouse Credit Facility.

“Our quarter was framed with a sharp focus on PharmHouse. We provided debtor-in-possession financing to enable PharmHouse to remain operational as it commenced its CCAA process and our team has been working towards securing the best possible outcome for our shareholders,” said Narbe Alexandrian, President and CEO, Canopy Rivers. “While supporting PharmHouse has been our priority, we are confident we will put this challenging situation behind us and remain encouraged by the progress across our portfolio. This quarter, we participated in Headset’s bridge round as it continues to bring its industry-leading analytical tools to new markets, High Beauty launched a new product line, and BioLumic’s most recent cannabis field trials showed promising gains in dried flower mass and cannabinoid content.”

Canopy Rivers detailed the charges as follows:

  • Share of loss from investment in PharmHouse common shares (due to impairment adjustments) of $32.6 million;
  • Provision for credit losses on the Company’s loans receivable with PharmHouse of $45.8 million; and
  • Provision for credit losses on the PharmHouse Guarantee liability of $25.0 million.

TerrAscend

During the quarter, TerrAscend opened an Apothecarium location in Berkeley, California. TerrAscend also received approval to cultivate cannabis at its New Jersey facility and open its first Apothecarium dispensary in the state. Finally, in August, TerrAscend announced strong second-quarter results, reporting net sales of $47.2 million. The company owns 19,445,285 exchangeable shares of TerrAscend that are convertible into common shares upon the occurrence of certain events.

“Most notably, the value of TerrAscend’s common shares increased by 101% during the quarter, and the implied value of our investment in TerrAscend is now approximately $214 million,” added Alexandrian. “After a U.S. election that potentially spells good outcomes for the cannabis sector, including the legalization of adult-use cannabis in New Jersey, we are pleased to have our U.S. exposure through our holdings of exchangeable shares in one of the nation’s leading multistate operators. We believe that we will be well-positioned to capitalize on opportunities in the U.S. once we are permitted to do so.”

More Writedowns

Canopy Rivers also reported a net decrease in the fair value of financial assets of $3.1 million for the quarter. The net decrease was primarily driven by negative changes in the estimated fair values of its royalty investment in Agripharm Corp. and convertible debenture investments in Greenhouse Juice Company and was partially offset by positive changes in the estimated fair values of the company’s royalty investment in The Tweed Tree Lot Inc. and term loan investment to TerrAscend Canada Inc. along with the associated warrants issued by TerrAscend Corp. Agripharm secured a supply agreement to provide the Ontario Cannabis Store with dried flower (and edibles at a later date) from Green House Seed Co., for which Agripharm holds an exclusive license in Canada.

“Naturally, we are extremely disappointed by the recent developments at PharmHouse and their impact on our financial results for this quarter, which reflect significant charges across various financial instruments we hold,” said Eddie Lucarelli, CFO, Canopy Rivers. “While the Company’s underlying net asset value continues to be supported by the sustained appreciation of our investment in TerrAscend, we remain critically focused on resolving PharmHouse’s current situation and maximizing value preservation for our shareholders.”


StaffNovember 2, 2020
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TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) announced preliminary financial results for its third-quarter ending September 30, 2020, with net sales of $51.0 million, representing 8% sequential and 90% year over year growth. All amounts are in Canadian dollars. TerrAscend did not say whether there were any net profits or losses.

The company also delivered an adjusted EBITDA of $17.8 million, an increase of 56% sequentially, and adjusted EBITDA margin expanded to 35% in the third quarter from 24% in the second quarter and 14% in the first quarter. TerrAscend will host a scheduled conference call to discuss the results for its third quarter on Thursday, November 19th, 2020 at 8:30 a.m. Eastern Time.

“We’re driving strong revenue growth and margin expansion by focusing on operational excellence, controlled SG&A spending, and strategically allocating our capital to generate the greatest returns and industry-leading EBITDA margins,” said Jason Ackerman, CEO and Executive Chairman of TerrAscend. “Leveraging the skills of our of our best-in-class operating team, we are focused on rapidly building scale in growing limited license markets.”

Mr. Ackerman added, “This strategy has led to further expansion of our footprint in the northeast, including an additional 25% expansion at our Pennsylvania cultivation facility in Q3 which began selling into the market in October. In New Jersey, where I believe we will be a major player, sales from our cultivation facility are expected to begin imminently and our first retail location in Phillipsburg is set to open in November. I look forward to realizing the full benefit of our substantially larger cultivation and manufacturing capacities across our system to further accelerate our revenue and adjusted EBITDA growth in Q4 and beyond.”

In addition to the numbers, TerrAscend also appointed Ed Schutter to its Board of Directors. Schutter is a seasoned executive with over thirty years of pharmaceutical industry experience. He currently serves as Chief Executive Officer of Arbor Pharmaceuticals, an Atlanta, Georgia based specialty pharmaceutical company which markets prescription products for the cardiovascular, neuroscience and orphan/hospital markets. Arbor also has several branded prescription products in late-stage development.

“We are thrilled to welcome Ed to our Board at such a pivotal time in our Company’s growth,” said Jason Ackerman, Chief Executive Officer and Executive Chairman of TerrAscend. “Ed brings a tremendous amount of relevant Board experience and new ideas to the table. His experience in the U.S. and global pharmaceutical industry will serve TerrAscend well as we continue to build scale and accelerate our growth.”


Lydia KibetAugust 20, 2020
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TerrAscend Corp. (OTCQX: TRSSF) reported that its total revenue increased 36% sequentially and 169% year over year to $47.2 million for its second quarter ending June 30, 2020. The net loss for TerrAscend in the quarter was $13.6 million, which was down from last year’s net loss of $19.1 million for the same time period.

The company also reported an adjusted EBITDA of $11 million, a  131% increase from the last quarter. The gross margin expanded sequentially to 56% from 45%, which shows its solid momentum.

With cash and cash equivalents of $75 million, the strikingly impressive revenue was contributed by the US operations, which generated 90% of consolidated net sales compared to the prior quarter.

The CEO and Executive Chairman of TerrAscend, Jason Ackerman, believes that the top performance is as a result of their unwavering commitment to achieving best-in-class results from their operations. “We have been thoughtful in our approach to expanding our business, primarily focused on the areas of the U.S. market, where we see the highest probability of sustained, long-term growth. With cultivation at our New Jersey production facility underway and our Pennsylvania operations continuing to track ahead of plan, I am confident we can continue this solid momentum into the second half of the year.”

Prices Increase, But Write-Offs Happened

Terrascend did state that its dry bud prices increased from $8.51 per gram in December 2019 to $9.14 in June 2020. The trim prices increased from $2.42 in December to $6.01 in June 2020.

Still, during the quarter ending in March, management assessed that the net book value of inventory held at its Canadian facility relating to raw materials and Cannabis 1.0 products (finished goods) exceeded the net realizable
value and thus recorded an impairment of $1,772 (December 31, 2019- $9,184). Management also determined net realizable value as the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale. In addition, during the three months ended March 31, 2020, management wrote off $135 (December 31, 2019 – $5,078) of inventory that it deemed unsaleable.

Since The Quarter Ended

On July 6, 2020, the Company opened its third Apothecarium dispensary in Pennsylvania and sixth overall. On July 31, 2020, the Company opened its fourth Apothecarium dispensary in California, in Berkeley. This is the
Company’s seventh Apothecarium dispensary overall. The stores will carry a wide variety of medical cannabis products, including dried flower, vaporizable and activated oils, concentrates, capsules, tinctures, topicals, and ancillary products.
On August 4, 2020, the Company’s greenhouse located at its Boonton facility has been approved by the New Jersey Department of Health (“NJ DOH”) to begin cultivating cannabis. Concurrently, TerrAscend has commenced initial
planting of this facility with the first harvest anticipated occurring during the fourth quarter of this year.
On August 5, 2020, the company announced the appointment of Jason Marks as Chief Legal Officer.

Looking Ahead

TerrAscend is forecasting that its full-year net sales should be at least $192 million driven by second half 2020 net sales growth of at least 34% versus the first half of 2020 and 109% year over year.  The company also said that the adjusted EBITDA for the year is expected to be at least $45 million.  TerrAscend noted that the outlook is driven by the company’s continued emphasis on further expansion of its most profitable business in Pennsylvania and ramp-up and further expansion of its retail footprint in PennsylvaniaNew Jersey, and California while maintaining a tight overall focus on costs.


StaffAugust 6, 2020
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TerrAscend Corp. (CSE:TER) (OTCQX: TRSSF)  stock popped over 10% to lately trade at $3.84 after the company announced preliminary financial results for its second-quarter. TerrAscend’s net sales increased 36% sequentially and 169% year over year to $47.2 million. The quarter ended June 30, 2020, and all amounts are in Canadian dollars.

“Our strong top and bottom-line performance reflects our unwavering commitment to achieve best-in-class results from our operations,” said Jason Ackerman, CEO and Executive Chairman of TerrAscend. “We have been thoughtful in our approach to expanding our business, primarily focused on the areas of the U.S. market where we see the highest probability of sustained, long-term growth. With cultivation at our New Jersey production facility underway and our Pennsylvania operations continuing to track ahead of plan, I am confident we can continue this solid momentum into the second half of the year.”

In addition to the sale figures, TerrAscend also delivered the following news in a statement:

  • US operations generated 90% of consolidated Net Sales
  • Adjusted EBITDA of $11.4 million, increasing 131% sequentially
  • Adjusted Gross Margin of 56% (before gain on fair value of biological assets)
  • Cash and Cash equivalents of $75 million as of June 30th, 2020

Management Changes

Just a couple of days ago, TerrAscend announced the appointment of Jason Marks as Chief Legal Officer. Recently, Marks served as the Chief Legal Officer, General Counsel & Corporate Secretary of InflaRx N.V., a publicly-traded biotechnology company. In this role, he was a member of the executive management team responsible for all aspects of legal, compliance, and corporate governance, as well as driving key business and strategic initiatives. Mr. Marks was also responsible for the operations of the company’s U.S. subsidiary.

The company also announced today the departure of Brian Feldman, formerly General Counsel and Heather Molloy, formerly Executive Vice President, Business Development and Chief Strategy Officer. Mr. Ackerman added, “On behalf of the whole team, I want to extend my heartfelt appreciation to both Heather and Brian for their contributions and tireless efforts during their tenure with TerrAscend.”

Later today, TerrAscend is scheduled to host an Investor and Analyst Day.

DATE: Thursday, August 6th, 2020
TIME: 10:00 a.m. Eastern Time
REGISTRATION: Click to Access
REPLAY: A replay will be posted to TerrAscend’s Investor Relations website and will be available until 12:00 midnight Eastern Time Thursday, August 20th, 2020

TerrAscend will publish its Q2 2020 results and host a conference call on August 20, 2020


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