TerrAscend Archives - Green Market Report

StaffAugust 1, 2023


The Daily Hit is a recap of the top financial news stories for August 1, 2023.

On the Site

TerrAscend Forecasts 23% Net Revenue Growth in 2023

TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) reported net revenue of $72.1 million for its second quarter ended June 30, an increase of 12.7% year-over-year and 3.9% sequentially. It marks the seventh consecutive quarter of growth. Read more here.

Maryland Doubles Cannabis Sales in First Month of Adult-Use Marijuana

Maryland cannabis companies sold a total of $87.43 million worth of both medical and recreational marijuana goods in the market’s first month of adult-use sales, according to state figures. Flower accounted for 58% of the products sold. Read more here.

Minnesota Becomes 23rd State to Legalize Adult-Use Cannabis

Beginning today, new legislation allows Minnesotans 21 and older to possess and use certain amounts of cannabis and cannabis products. However, retail sales aren’t expected to begin until early 2025, after the new state Office of Cannabis Management develops the framework for the program. Read more here.

Marijuana Industry Cuts Down on D.C. Lobbying

A broad trend of cannabis industry belt-tightening has now affected advocacy efforts in Washington, D.C., with many trade organizations slashing their lobbying budgets or in some instances shuttering the efforts altogether. Read more here.

Christina Lake Cannabis Weathers Distillate Price Compression

Despite market price compression in distillate, Vancouver-based Christina Lake Cannabis Corp. (CSE: CLC) (OTCQB: CLCFF) (FRANKFURT: CLB) achieved revenue growth in its second quarter, rising 36% to $5.4 million from the same period last year, with an 81% increase sequentially. The firm saw a 118% increase in the volume of distillate sold for the first half of the year, versus the same six-month period last year. Read more here.

In Other News

Columbia Care Holdings

Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) will voluntarily delist its common shares from the facilities of the Canadian Securities Exchange, effective as of market close on Aug. 2. Columbia Care will continue trading on the Cboe Canada, the new business name of the NEO Exchange. Read more here.


Avicanna Inc. (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) has closed on its acquisition of the Medical Cannabis by Shopper’s Business from Shoppers Drug Mart. In addition, the company launched a new medical cannabis care platform, MyMedi.ca. Read more here.

Medical Marijuana Inc.

Medical Marijuana Inc. (OTC: MJNA) announced that its network marketing division, Kannaway, has completed an Asset Purchase Agreement with eXfuse LLC, dba KZ1, a Japan-based network marketing company. The KZ1 acquisition will increase the sales force of the company’s Kannaway division in Japan by approximately 1,450 individuals. Read more here.

Debra BorchardtJuly 6, 2023


The cannabis industry has been mired in a bear market for at least two years now. Challenges range from plunging prices for flower to excessive debt payments, and sales in mature markets have begun to plateau.

Many believed that the catalyst to turn things around would be the passing of banking legislation like the SAFE Act or even TerrAscend’s approved move to the Toronto Stock Exchange. However, it could be something as simple as 280e.

But as with most things in cannabis, even 280e isn’t simple.

$700 Million

Viridian Capital Advisors recently calculated that eliminating 280e would make a bigger difference than either the SAFE Act or a TSX uplisting.

As a refresher, Section 280e in the Internal Revenue Code forbids businesses from deducting otherwise ordinary business expenses from gross income associated with the “trafficking” of Schedule I or II substances, as defined by the Controlled Substances Act.

Most businesses can take tax deductions on various expenses which helps the company’s profitability, but not cannabis.

After analyzing 13 large MSOs, Viridian found that three companies with negative free cash flow (FCF) would have positive FCF without 280e. The adjustment also would more than double FCF for the five companies on the right side of the graph.

The adjustment would add approximately $700 million to the 2023 FCF of the companies reviewed.

Source: Viridian Capital Advisors

Number Crunching

The company collected consensus estimates of 2023 cash flow from operations and CAPEX for these companies to calculate FCF after the impact of paying 280e taxes but before any debt maturities. Six of the 13 companies have expected negative 2023 free cash flow.

Next Viridian calculated an adjustment to eliminate 280 taxes by calculating the amount of federal taxes levied on each company based on the 2023 consensus gross profit minus the taxes (if any) that would result from a tax imposed based on pretax profit.

The orange bars in the graph above show the adjustment. The green bars depict the FCF of each company after eliminating the impact of 280e.

Challenge of Ending 280e

Killing a tax code should be pretty simple, right? Congress could just make a change to the IRS.

Unfortunately, there doesn’t seem to be much political desire to go this route. The issue doesn’t drive voters to the polls and taking a stand on 280e won’t affect reelection.

Of course rescheduling to Schedule III of the CSA would immediately remove the tax issue, but as Viridian pointed out in its report, “Rescheduling to level 3 or below has its own issues, including introducing FDA oversight on a limited set of products and continuing state control over others. It will likely take years to draft and approve the necessary  regulations and achieve coordination among the federal agencies involved.”

Since the country just celebrated Independence Day, Viridian felt it fitting to state, “Unlike in 1776, there is currently no rallying cry to eliminate ‘taxation without representation.’”

StaffMay 30, 2023


The Daily Hit is a recap of the top financial news stories for May 30, 2023.

On The Site

Two Dozen Publicly Traded U.S. Cannabis Companies Lost $4 Billion Last Year

Two dozen of the top plant-touching publicly traded marijuana companies in the United States posted a cumulative financial loss of more than $4 billion in 2022 against nearly $9 billion in revenue, according to analysis of filings by Green Market Report. Read more here.

New York Cannabis Regulators Propose Settlement for Lawsuit Hindering Retail Licensing

New York marijuana industry regulators on Tuesday gave initial approval to a settlement deal that is intended to end a legal fight that has stalled retail cannabis permits in the Finger Lakes Region. Read more here.

Numinus Wellness Shares Soar as Landmark Clinical Study of Psilocybin Therapy Begins

Numinus Wellness Inc. (TSX: NUMI) announced on Tuesday that its subsidiary, Cedar Clinical Research, has begun studying a potential new therapy for treatment-resistant depression (TRD) using COMP360 psilocybin. As a result, shares of NUMI jumped more than 30% to lately sell at 19 cents on the news as of the Phase 3 trial was released on Tuesday morning. Read more here.

Entourage Health Revenue Rises on Pre-Rolls, Medical Marijuana

Entourage Health Corp. (TSX-V: ENTG) (OTCQX: ETRGF) announced Tuesday a 24% sequential increase in revenue for the first quarter of 2023 ending March 31, with a significant contribution from its medical cannabis stream and adult-use pre-roll sales. Read more here.

YourWay Cannabis Can’t Find An Auditor For Filings

YourWay Cannabis Brands Inc. (CSE: YOUR)(OTC: YOURF) has been delayed in issuing its financial reports because it can’t find an auditor. The company said that since the resignation of its previous auditor Macias Gini & O’Connell LLP in December 2022, it hasn’t been able to find a replacement. Read more here.

In Other News


Surrounded by dozens of cheering people in green clothes, Minnesota Democratic Gov. Tim Walz signed a bill Tuesday to legalize recreational marijuana for people over the age of 21, making Minnesota the 23rd state to legalize the substance for adults. Read more here.


Ohioans 21 and older would be able to cultivate, purchase and possess marijuana if a bipartisan bill passes in the Ohio Statehouse, possibly circumventing a ballot measure campaign to force legalization through. Read more here.

North Carolina

A North Carolina state House of Representatives committee has taken up a medical marijuana legalization bill already approved by the state Senate, and activists are hopeful this year the state may embrace MMJ. Read more here.

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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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