TerrAscend Corp. (CSE: TER)(OTCQX: TRSSF) reported that its third-quarter for 2019 increased 53% sequentially to $26.8 million from $17.6 million in the second quarter. It was a large increase over the $1.8 million delivered in the third quarter of 2018. All figures are reported in Canadian dollars. The company attributed the increase to higher overall sales in Canada as well as strong sales in the U.S.
The net loss for the quarter was $17 million. Total operating expenses were $25 million, which also increased from $18 million in the second quarter.
“Two weeks into my new role, I continue to be impressed with TerrAscend’s unique assets and competitive positioning in both the United States and Canada,” said Jason Ackerman, TerrAscend’s Executive Chairman. “I see even greater potential for our business as we sharpen our focus on the U.S., where we are extremely well-positioned to become a leader in the markets we serve. My top priority now is to operationalize the company’s strategy while driving continued growth, improving profitability and fortifying our financial strength.”
As of September 30, 2019, TerrAscend said it had $6.9 million in cash and cash equivalents. Subsequent to quarter-end, the company said it closed on two tranches of the previously announced non-brokered private placement for total proceeds of approximately $18.0 million
Michael Nashat, CEO of TerrAscend added, “We are on track to deliver a year of tremendous progress for the overall company both operationally and financially. This has been especially evident in recent months, where we expanded our portfolio of U.S. assets with the addition of Ilera Healthcare in Pennsylvania, booked our first international shipment of medical cannabis to Europe, and received Health Canada approvals which tripled the licensed space at our Mississauga facility enabling future sales of new product formats and extracts for the Canadian Cannabis 2.0 market. Meanwhile, we have grown total sales in the third quarter to nearly $27 million from less than $2 million a year ago with improving margins.”
Late in the third quarter, TerrAscend acquired Ilera Healthcare, the owner of one of five fully vertically integrated licenses in the State of Pennsylvania. Ilera operates a retail dispensary in Plymouth Meeting, PA, with plans to open two additional dispensary sites in the Philadelphia area. The operations include a 67,000 sq. ft. site for cultivation and processing in Waterfall, PA with planned expansion to over 120,000 sq. ft. in 2020. In addition to selling its cannabis products in its own dispensary, Ilera distributes to 70 dispensaries throughout Pennsylvania.