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.”