TerrAscend Reports First Quarter 2022 Financial Results

TerrAscend Corp. ("TerrAscend" or the "Company") (CSE: TER) (OTCQX: TRSSF), a leading North American cannabis operator, today reported its financial results for the first quarter ending March 31, 2022 . All amounts are expressed in U.S. dollars unless indicated otherwise and are prepared under U.S. Generally Accepted Accounting principles (GAAP).

First Quarter 2022 Financial Highlights

  • Net Sales were $49.7 million as compared to $49.2 million in Q4 2021.
  • Gross Profit Margin was 30.5% as compared to 42.3% in Q4 2021.
  • Adjusted Gross Profit   Margin 1 was 38.4% as compared to 49.8% in Q4 2021.
  • Adjusted EBITDA 1 was $3.3 million as compared to $11.9 million in Q4 2021.
  • Adjusted EBITDA   Margin 1 was 6.6% as compared to 24.2% in Q4 2021.
  • Cash and Cash Equivalents totaled $88.4 million as of March 31, 2022 .

Jason Wild , Executive Chairman of TerrAscend, commented, "While revenue and margins during the first quarter were impacted by the industry wide vape recall in Pennsylvania and front-loaded operating costs in New Jersey ahead of adult use, we expect revenue and margin to increase materially in the second quarter and beyond. The strategic decisions and investments we have made over the last three years position us well for substantial growth in each of our four key markets – New Jersey , Pennsylvania , Michigan and Maryland ."

Mr. Wild continued, " New Jersey adult use sales began on April 21 st , a significant milestone for TerrAscend and the entire industry. Demand has been strong for our brands and our elevated retail experience. We recently introduced the first concentrates in the state and expect additional 'first-in-state' product introductions in the near future. In Pennsylvania , we continue to cultivate the highest quality flower in our history and have introduced new genetics, to which patients have reacted positively. In Michigan , Gage has positioned us as a leader in one of the largest cannabis markets in the U.S. Lastly, subsequent to the quarter end, we announced the acquisition of a medical dispensary in Maryland and 5 dispensaries in Michigan . These acquisitions exemplify our strategy of 'going deep' in the markets in which we operate. While remaining focused on organic growth, the dislocation in public and private company valuations should provide attractive M&A opportunities to accelerate growth in a financially disciplined way."

Financial Summary Q1 2022 and Comparative Periods

(in millions of U.S. Dollars)



Q1 2021



Q4 2021



Q1 2022


Revenue, net



53.4




49.2




49.7


QoQ increase



7.5%




0.1%




0.9%


YoY increase



106.2%




-0.8%




-6.9%













Gross profit



34.9




20.8




15.1


Adjusted Gross profit 1



34.9




24.5




19.1


Adjusted gross margin %



65.5%




49.8%




38.4%













Share-based compensation expense



3.6




1.5




3.4


General & Administrative expense (excl share based comp)



16.8




17.0




19.2


% of revenue, net



31.5%




34.5%




38.7%













Adjusted EBITDA 1



21.6




11.9




3.3


Adjusted EBITDA % of revenue, net



40.4%




24.2%




6.6%













Net loss



(14.1)




(5.9)




(16.0)


Cash Flow from Operations



6.2




(3.8)




(18.8)















1. Adjusted EBITDA and the respective margin and Adjusted Gross Profit and the respective margin are non-GAAP measures. Please see discussion and reconciliation of non-GAAP measures at the end of this press release.

First Quarter 2022 Business and Operational Highlights

  • Closed on the acquisition of Gage Growth Corp.
  • Appointed Ziad Ghanem as President and Chief Operating Officer.
  • Appointed Jared Anderson , SVP Finance & Strategy, Charishma Kothari , SVP Marketing, and Charles Oster , SVP Sales.
  • Appointed Kara DioGuardi to the Board of Directors.
  • Became first major MSO to expand its ecommerce platform via proprietary Apothecarium mobile app, available in the Apple App store, with express pick-up and delivery where permitted.

Subsequent Events

  • Held the grand opening of adult-use sales on April 21 st in Maplewood and Phillipsburg, New Jersey , two of only twelve dispensaries currently opened in the state.
  • Approved for hydrocarbon extraction in New Jersery with first products recently launched.
  • Signed lease on new facility in New Jersey , which will provide expanded capacity up to the 150,000 canopy square foot limit.
  • Received home delivery license for medical patients in New Jersey .
  • Partnered with Cookies to open its third Cookies-branded dispensary in Michigan , located in Ann Arbor .
  • Announced agreement to acquire KISA Enterprises MI, LLC and KISA Holdings, LLC ("Pinnacle"), a dispensary operator in Michigan with 5 operational locations.
  • Extraction lab and packaging facilities in Michigan approved to start operations.
  • Announced acquisition of Allegany Medical Marijuana Dispensary ("AMMD") located in Cumberland, MD , which will enable the Company to become vertically integrated in the state.
  • Announced the promotion of Jodie Lampert to SVP of Human Resources and the appointment of Lynn Gefen as Chief Legal Officer and Corporate Secretary.

First Quarter 2022 Financial Results
Net sales for the first quarter of 2022 totaled $49.7 million , up 1% sequentially and down 7% year over year, mainly related to the temporary impact of the vape recall on the Pennsylvania business, combined with the continued intentional accumulation of inventory in New Jersey , versus selling wholesale, in preparation for adult use sales. The Company's Canadian business also experienced a soft quarter both sequentially and year over year.  The declines were partially offset by three weeks of revenue from the Gage acquisition, which closed on March 10th .

Gross margin for the quarter was 30.5% as compared to 42.3% in the previous quarter. Adjusted gross margin for the quarter, excluding one-time impacts such as reserves for the Pennsylvania vape recall in the first quarter, was 38.4% as compared to 49.8% in the previous quarter.  The sequential margin compression was driven by the under-absorption impact of lower volumes related to the vape recall in Pennsylvania , front loaded costs in New Jersey ahead of adult use sales, and an unfavorable mix from the addition of Gage.

General & Administrative expenses, excluding stock-based compensation, were up $2.2 million , including Gage, versus the previous quarter. As a percentage of revenue, G&A increased to 38.7% in the first quarter of 2022 from 34.5% in fourth quarter of 2021. The increase as a percentage of revenue was impacted by flat revenue combined with front-loaded spending in New Jersey ahead of adult use and the addition of Gage for part of the quarter.

Adjusted EBITDA for the quarter was $3.3 million versus $11.9 million in the previous quarter. This reduction was mainly driven by gross margin compression in Pennsylvania related to lower volumes and front-loaded costs in New Jersey ahead of adult use sales, as well as intentional accumulation of inventory in the state in preparation for adult use sales.

Operating loss for the quarter was $10.0 million , driven by the mix of revenue resulting in compressed gross margin.

Net loss for the quarter was $16.0 million , mainly driven by the operating loss, accrued income taxes of $3.7 million , and finance and other expenses of $6.9 million , partially offset by a net gain on fair value of warrant liability of $5.7 million .

Balance Sheet and Cash Flow
Cash and cash equivalents were $88.4 million as of March 31, 2022 , compared to $79.6 million as of December 31, 2021 , providing ample capacity to fund planned organic and inorganic growth initiatives.

Cash used from operations was $18.8 million for the three months ended March 31, 2022 , mainly driven by working capital as the Company continued to prepare for adult use sales in New Jersey , as well as $8 million of interest payments.  The Company received $23.9 million in proceeds from warrants and options during the quarter while paying $3.3 million to terminate the lease in Frederick, Maryland in preparation for the transition to the new facility in Hagerstown.  A payment of $7.0 million was also made for the final earnout related to the acquisition of the State Flower business.

Capital expenditures were $4.2 million in the quarter, primarily related to the on-going expansion work at the Hagerstown, Maryland facility.

As of May 11 th , 2022 there were 318.4 million basic shares outstanding including 252 million common shares, 14 million preferred shares as converted, and 52.4 million exchangeable shares.

Conference Call
TerrAscend will host a conference call today, May 12, 2022 , to discuss these results. Jason Wild , Executive Chairman; Ziad Ghanem , President and Chief Operating Officer and Keith Stauffer , Chief Financial Officer will host the call starting at 6:00 p.m. Eastern time . A question-and-answer session will follow management's presentation.

CONFERENCE CALL DETAILS



DATE:

Thursday, May 12, 2022

TIME:

6:00 p.m. Eastern Time

WEBCAST:

Click Here

DIAL-IN NUMBER:

1-888-664-6392

CONFERENCE ID:

37033819

REPLAY:

(416) 764-8677 or (888) 390-0541
Available until 12:00 midnight Eastern Time Thursday, May 26, 2022

Replay Code: 033819 #

Financial results and analyses are available on the Company's website ( www.terrascend.com ) and SEDAR ( www.sedar.com ).

The Canadian Securities Exchange ("CSE") has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

Definition and Reconciliation of Non-GAAP Measures
In addition to reporting the financial results in accordance with GAAP, the Company reports certain financial results that differ from what is reported under GAAP. Non-GAAP measures used by management do not have any standardized meaning prescribed by GAAP and may not be comparable to similar measures presented by other companies. The Company believes that certain investors and analysts use these measures to measure a company's ability to meet other payment obligations or as a common measurement to value companies in the cannabis industry, and the Company calculates Adjusted Gross Profit as Gross Profit adjusted for certain material non-cash items and Adjusted EBITDA as EBITDA adjusted for certain material non-cash items and certain other adjustments management believes are not reflective of the ongoing operations and performance. Such information is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The Company believes this definition is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of the Company's underlying business performance and other one-time or non-recurring expenses.

The table below reconciles Gross Profit and Adjusted Gross Profit for the quarters ended March 31, 2022 , December 31, 2021 , and March 31, 2021


For the Three Months Ended


(in millions of U.S. Dollars)


March 31,
2021



December 31,
2021



March 31,
2022


Gross profit



34,942




20,830




15,140


Add (deduct) the impact of:










Vape recall









1,894


Accelerated depreciation









238


Non-cash write downs of inventory






1,968





Relief of fair value of inventory upon acquisition






1,735




1,806


Adjusted gross profit



34,942




24,533




19,078



The table below reconciles net loss to EBITDA and Adjusted EBITDA for the quarters ended March 31, 2022 , December 31, 2021 , and March 31, 2021


For the Three Months Ended




March 31,
2021



December 31,
2021



March 31,
2022












Net loss


$

(14,111)



$

(5,927)



$

(16,006)


Add (deduct) the impact of:










Provision for income taxes



9,436




6,942




3,743


Finance expenses



5,359




6,528




6,699


Amortization and depreciation



3,521




4,140




5,084


EBITDA



4,205




11,683




(480)


Add (deduct) the impact of:










Non-cash write-down of inventory






1,968





Relief of fair value of inventory upon acquisition






1,735




1,806


Vape recall









1,894


Share-based compensation



3,567




1,548




3,356


Impairment of property and equipment






470





Loss on lease termination






3,278





Revaluation of contingent consideration



2,997




932




119


Restructuring and executive severance






14





Legal settlements



1,381








Other one-time items



262




3,583




1,974


(Gain) loss on fair value of warrants and purchase option derivative asset



5,410




(14,189)




(5,713)


Indemnification asset release



1,197




613




(25)


Unrealized and realized (gain) loss on investments and notes receivable



(228)








Unrealized and realized foreign exchange loss



2,783




228




356


Adjusted EBITDA


$

21,574



$

11,863



$

3,287


About TerrAscend
TerrAscend is a leading North American cannabis operator with vertically integrated operations in Pennsylvania, New Jersey, Michigan and California, licensed cultivation and processing operations in Maryland and licensed production in Canada. TerrAscend operates The Apothecarium and Gage dispensary retail locations as well as scaled cultivation, processing, and manufacturing facilities in its core markets. TerrAscend's cultivation and manufacturing practices yield consistent, high-quality cannabis, providing industry-leading product selection to both the medical and legal adult-use markets. The Company owns several synergistic businesses and brands, including Gage Cannabis, The Apothecarium, Ilera Healthcare, Kind Tree, Prism, State Flower, Valhalla Confections, and Arise Bioscience Inc. For more information, visit www.terrascend.com .

Caution Regarding Cannabis Operations in the United States
Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States . Cannabis remains a Schedule I drug under the US Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute, or possess cannabis in the United States . Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable US federal money laundering legislation.

While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve TerrAscend of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against TerrAscend. The enforcement of federal laws in the United States is a significant risk to the business of TerrAscend and any proceedings brought against TerrAscend thereunder may adversely affect TerrAscend's operations and financial performance.

Forward Looking Information
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information contained in this press release may be identified by the use of words such as, "may", "would", "could", "will", "likely", "expect", "anticipate", "believe, "intend", "plan", "forecast", "project", "estimate", "outlook" and other similar expressions, and include statements with respect to future revenue and profits. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment, and the availability of licenses, approvals and permits.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to, current and future market conditions; risks related to federal, state, provincial, territorial, local and foreign government laws, rules and regulations, including federal and state laws in the United States relating to cannabis operations in the United States ; and the risk factors set out in the Company's most recently filed MD&A, filed with the Canadian securities regulators and available under the Company's profile on SEDAR at www.sedar.com .

The statements in this press release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether, as a result of new information, future events, or results or otherwise, other than as required by applicable securities laws.

Unaudited Interim Condensed Consolidated Balance Sheets
(Amounts expressed in thousands of United States dollars, except for per share amounts)



At



At




March 31, 2022



December 31, 2021


Assets







Current Assets







Cash and cash equivalents


$

88,407



$

79,642


Accounts receivable, net



23,097




14,920


Investments



4,121




-


Inventory



64,058




42,323


Prepaid Expenses and other current assets



7,452




6,336





187,135




143,221


Non-Current Assets







Property and equipment, net



211,717




140,762


Deposits



7,798




-


Operating lease right of use assets



30,801




29,561


Intangible assets, net



354,452




168,984


Goodwill



235,681




90,326


Indemnification asset



3,994




3,969


Other non-current assets



4,823




5,111





849,266




438,713


Total Assets


$

1,036,401



$

581,934









Liabilities and Shareholders' Equity







Current Liabilities







Accounts payable and accrued liabilities


$

49,214



$

30,340


Deferred revenue



2,029




1,071


Loans payable, current



60,108




8,837


Contingent consideration payable, current



3,114




9,982


Lease liability, current



1,688




1,193


Corporate income tax payable



28,808




18,939


Other current liabilities



3,305




-





148,266




70,362


Non-Current Liabilities







Loans payable, non-current



184,558




176,306


Contingent consideration payable, non-current



2,586




2,553


Lease liability, non-current



32,450




30,754


Warrant liability



55,021




54,986


Deferred income tax liability



72,740




14,269


Financing obligations



12,142




-


Other long term liabilities



3,399




3,750





362,896




282,618


Total Liabilities



511,162




352,980


Commitments and Contingencies







Shareholders' Equity







Share Capital







Series A, convertible preferred stock, no par value, unlimited shares authorized; 13,358 and 13,708 shares outstanding as of
March 31, 2022 and December 31, 2021 respectively







Series B, convertible preferred stock, no par value, unlimited shares authorized; 610 and 610 shares outstanding as of March
31, 2022 and December 31, 2021 respectively







Series C, convertible preferred stock, no par value, unlimited shares authorized; nil and 36 shares outstanding as of March 31,
2022 and December 31, 2021 respectively







Series D, convertible preferred stock, no par value, unlimited shares authorized; nil and nil shares outstanding as of March 31,
2022 and December 31, 2021 respectively







Proportionate voting shares, no par value, unlimited shares authorized; nil and nil shares outstanding as of March 31, 2022
and December 31, 2021 respectively







Exchangeable shares, no par value, unlimited shares authorized; 52,395,071 and 38,890,571 shares outstanding as of March
31, 2022 and December 31, 2021 respectively







Common stock, no par value, unlimited shares authorized; 251,971,226 and 190,930,800 shares outstanding as of March 31,
2022 and December 31, 2021 respectively







Additional paid in capital



850,386




535,418


Accumulated other comprehensive income (loss)



(783)




2,823


Accumulated deficit



(329,855)




(314,654)


Non-controlling interest



5,491




5,367


Total Shareholders' Equity



525,239




228,954


Total Liabilities and Shareholders' Equity


$

1,036,401



$

581,934


Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Loss
(Amounts expressed in thousands of United States dollars, except for per share amounts)


For the Three Months Ended



March 31, 2022



March 31, 2021


Revenue

$

50,445



$

56,496


Excise and cultivation tax


(786)




(3,142)


Revenue, net


49,659




53,354








Cost of Sales


34,519




18,412








Gross profit


15,140




34,942








Operating expenses:






General and administrative


22,552




20,392


Amortization and depreciation


2,618




1,873


Total operating expenses


25,170




22,265








(Loss) income from operations


(10,030)




12,677


Other expense (income)






Revaluation of contingent consideration


119




2,997


(Gain) loss on fair value of warrants and purchase option derivative asset


(5,713)




5,410


Finance and other expenses


6,856




6,390


Transaction and restructuring costs


615





Unrealized and realized foreign exchange loss


356




2,783


Unrealized and realized loss (gain) on investments


-




(228)


Loss before provision from income taxes


(12,263)




(4,675)


Provision for income taxes


3,743




9,436


Net loss

$

(16,006)



$

(14,111)








Foreign currency translation


3,607




(2,189)


Comprehensive loss

$

(19,613)



$

(11,922)








Net loss attributable to:






Common and proportionate Shareholders of the Company

$

(16,357)



$

(14,174)


Non-controlling interests


351



$

63








Comprehensive loss attributable to:






Common and proportionate Shareholders of the Company

$

(19,964)



$

(11,985)


Non-controlling interests


351



$

63








Net loss per share, basic and diluted






Net income (loss) per share - basic

$

(0.08)



$

(0.08)


Weighted average number of outstanding common and proportionate voting shares


211,126,932




171,371,637


Net income (loss) per share - diluted

$

(0.08)



$

(0.08)


Weighted average number of outstanding common and proportionate voting shares, assuming dilution


211,126,932




171,371,637


Unaudited Interim Condensed Consolidated Statements of Cash Flows
(Amounts expressed in thousands of United States dollars, except for per share amounts)


For the Three Months Ended




March 31, 2022



March 31, 2021


Operating activities







Net loss



(16,006)




(14,111)


Adjustments to reconcile net income to net cash provided by (used in) operating activities







Non-cash write downs of inventory



1,073




584


Accretion expense



(1,169)




(1,937)


Depreciation of property and equipment and amortization of intangible assets



5,085




3,521


Amortization of operating right-of-use assets



487




343


Share-based compensation



3,356




3,567


Deferred income tax (recovery) expense



(1,134)




224


(Gain) loss on fair value of warrants and purchase option derivative



(5,713)




5,410


Revaluation of contingent consideration



119




2,997


Release of indemnification asset



(25)




1,197


Forgiveness of loan principal and interest



-




(766)


Unrealized and realized foreign exchange loss



356




2,783


Unrealized and realized loss (gain) on investments



-




(228)


Changes in operating assets and liabilities







Receivables



(1,399)




511


Inventory



3,706




(4,161)


Prepaid expense and deposits



682




294


Deposits



(593)




-


Other assets



571




(189)


Accounts payable and accrued liabilities and other payables



(12,475)




1,439


Operating lease liability



(271)




(81)


Other liability



(437)




-


Contingent consideration payable



(324)




-


Corporate income tax payable



4,869




4,713


Deferred revenue



395




102


Net cash (used in) provided by operating activities



(18,847)




6,212


Investing activities







Investment in property and equipment



(4,193)




(8,311)


Investment in intangible assets



(106)




(40)


Principal payments received on lease receivable



156




193


Distributions of earnings from associates



-




99


Deposits for property and equipment



(6,058)




(4,826)


Deposits for business acquisition



(602)




-


Cash received on acquisition of Gage



24,716




-


Net cash provided by (used in) investing activities



13,913




(12,885)


Financing activities







Proceeds from options and warrants exercised



23,925




9,170


Proceeds from loans payable



-




766


Capital contributions paid to non-controlling interests



(227)




(161)


Payments of contingent consideration



(6,630)




-


Proceeds from private placement, net of share issuance costs



-




173,477


Net cash provided by financing activities



17,068




183,252


Net (decrease) increase in cash and cash equivalents during the period



12,134




176,579


Net effects of foreign exchange



(3,369)




(1,568)


Cash and cash equivalents, beginning of period



79,642




59,226


Cash and cash equivalents, end of period



88,407




234,237









Supplemental disclosure with respect to cash flows







Income taxes paid



8




4,499


Interest paid



8,271




9,140


Lease termination fee paid



3,300




-


Non-cash transactions







Shares issued as consideration for acquisitions



294,800




-


Shares issued for liability settlement



22




-


Accrued capital purchases



56




-


Cision View original content: https://www.prnewswire.com/news-releases/terrascend-reports-first-quarter-2022-financial-results-301546571.html

SOURCE TerrAscend

Cision View original content: https://www.newswire.ca/en/releases/archive/May2022/12/c0812.html

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TerrAscend to Participate in the 7th Annual Canaccord Genuity Global Cannabis Conference on May 18th in NYC

TerrAscend to Participate in the 7th Annual Canaccord Genuity Global Cannabis Conference on May 18th in NYC

TerrAscend Corp. ("TerrAscend" or the "Company") (CSE: TER) (OTCQX: TRSSF), a leading North American cannabis operator, today announced that its executive management team will participate in the Canaccord Genuity 7th Annual Global Cannabis Conference being held on May 18, 2023 in New York City .

TerrAscend Corp. Logo (CNW Group/TerrAscend)

Jason Wild , Chairman of the Board, will participate in a fireside chat with Matt Bottomley , Managing Director, Equity Research at Canaccord Genuity, on Thursday, May 18, 2023 , at 2:00 PM ET . Management, including Ziad Ghanem , Chief Executive Officer and Keith Stauffer , Chief Financial Officer, will host one-on-one meetings throughout the conference.

For more information, please click here .

About TerrAscend

TerrAscend is a leading North American cannabis operator with vertically integrated operations in Pennsylvania , New Jersey , Maryland , Michigan and California and retail operations in Canada . TerrAscend operates The Apothecarium and Gage dispensary retail locations as well as scaled cultivation, processing, and manufacturing facilities in its core markets. TerrAscend's cultivation and manufacturing practices yield consistent, high-quality cannabis, providing industry-leading product selection to both the medical and legal adult-use markets. The Company owns several synergistic businesses and brands including Gage Cannabis, The Apothecarium, Ilera Healthcare, Kind Tree, Legend, State Flower, and Valhalla Confections. For more information visit   www.terrascend.com .

SOURCE TerrAscend

Cision View original content to download multimedia: https://www.newswire.ca/en/releases/archive/May2023/17/c6059.html

News Provided by Canada Newswire via QuoteMedia

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TerrAscend Celebrates the Opening of its Fifth Cookies Dispensary in Michigan

TerrAscend Celebrates the Opening of its Fifth Cookies Dispensary in Michigan

TerrAscend Corp. ("TerrAscend" or the "Company") (CSE: TER) (OTCQX: TRSSF), a leading North American cannabis operator, today announced that its subsidiary, Gage Cannabis Co. ("Gage") recently launched sales at its new flagship cannabis provisioning center in Oxford, Michigan . Located at 450 South Glaspie St., Cookies Oxford is operated by Gage through a partnership with Cookies, the leading lifestyle and cannabis brand in North America . This is TerrAscend's fifth licensed Cookies dispensary in Michigan joining locations in Detroit Ann Arbor Kalamazoo and Jackson .

TerrAscend Corp. Logo (CNW Group/TerrAscend)

Cookies, a globally recognized cannabis company, offers a collection of over 70 proprietary cannabis cultivars and more than 2,000 products. Based in the Bay Area , Cookies' Co-Founder and CEO Berner is a prolific rapper and entrepreneur along with his partner, Jai, a highly respected cannabis cultivator and breeder. Cookies values the power of the plant and focuses on creating game-changing genetics.

Cookies Oxford carries the entire family of Cookies products, including but not limited to Cookies and Lemonnade. The store also sells a full suite of Gage products, including Gage pre-packaged and bulk flower, GAGE distillate carts and concentrates.

"We're very excited by the following and the demand that's growing for our brand in one of the biggest and most renowned cannabis markets," said Berner, Co-Founder and CEO of Cookies. "Cookies is proud to expand our partnership with TerrAscend and Gage in bringing our celebrated menu of California flavors to the devoted customers in Michigan ."

"TerrAscend is excited to expand our partnership with Cookies in Michigan and open an additional store in the Metro Detroit region," said TerrAscend's Executive Chairman Jason Wild . "Consumers across the Midwest have demanded Cookies' highly sought menu of exclusive products. We're looking forward to future expansions with top-quality brands in Michigan and elsewhere."

Iconic Detroit rapper Trick Trick commenced the ribbon cutting and grand opening celebration at Cookies Oxford on Saturday, May 13 th . To celebrate its grand opening, Cookies Oxford hosted on-site activations, including a live DJ, food trucks, vendors and special giveaways. Cookies Oxford is open Monday - Saturday 10:00 am - 9:00 pm and 10:00 am - 7:00 pm on Sunday .

In addition to the new Cookies provisioning center, the Company has dedicated significant shelf space to the display and sale of Cookies and GAGE products at Gage locations in Adrian , Burton , Battle Creek , Center Line , Detroit , Ferndale , Grand Rapids , Jackson , Kalamazoo , Lansing , and Traverse City .

More information can be found at www.cookiesmichigan.com or on Instagram @cookies.michigan.

About TerrAscend

TerrAscend is a leading North American cannabis operator with vertically integrated operations in Pennsylvania , New Jersey , Maryland , Michigan and California and retail operations in Canada . TerrAscend operates The Apothecarium and Gage dispensary retail locations as well as scaled cultivation, processing, and manufacturing facilities in its core markets. TerrAscend yields consistent, high-quality cannabis, providing industry-leading product selection to both the medical and legal adult-use markets. The Company owns several synergistic businesses including Gage Cannabis, The Apothecarium, Ilera Healthcare, Kind Tree, Legend, State Flower, and Valhalla Confections. For more information visit www.terrascend.com .

ABOUT COOKIES

Cookies is the most globally recognized cannabis company; founded in 2010 by Billboard-charting rapper and entrepreneur Berner and Bay Area breeder and cultivator Jai. The company creates game-changing genetics and offers a collection of over 70 proprietary cannabis cultivars and more than 2,000 products. Headquartered in San Francisco , the company is actively involved in advocacy and social impact initiatives to enrich communities disproportionately impacted by the War on Drugs. Cookies opened its first retail store in 2018 in Los Angeles , has since expanded to 59 retail locations in 23 markets across 6 countries, and was recently named one of America's Hottest Brands of 2021 by AdAge; the first cannabis brand to ever receive this accolade. To learn more about Cookies, visit cookies.co , and to learn more about Cookies CBD, visit shop.cookies.co .

Instagram: @cookiesenterprises
Twitter: @cookiesglobal
Facebook: @cookiesenterprises

ABOUT GAGE

Gage is a premier provider of the high-quality cannabis experience that consumers crave. We bring internationally renowned brands and high end products to the cannabis space. Throughout our journey to becoming the market's choice cannabis provider, we have leaned into creativity and innovation to successfully build our various licensed cultivation, processing and retail operations. We strive to continue our passion of providing the cannabis consumer with the world-class premium cannabis products they want and deserve. To learn more about Gage's mission for the everyday canna-connoisseur, visit www.gagecannabis.com .

Instagram: @gagecannabis
Twitter: @gagecannabisco

Caution Regarding Cannabis Operations in the United States

Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States . Cannabis remains a Schedule I drug under the US Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute or possess cannabis in the United States . Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable US federal money laundering legislation.

While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve TerrAscend of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against TerrAscend. The enforcement of federal laws in the United States is a significant risk to the business of TerrAscend and any proceedings brought against TerrAscend thereunder may adversely affect TerrAscend's operations and financial performance.

Forward Looking Information

This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information contained in this press release may be identified by the use of words such as, "may", "would", "could", "will", "likely", "expect", "anticipate", "believe, "intend", "plan", "forecast", "project", "estimate", "outlook" and other similar expressions. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment, and the availability of licenses, approvals and permits.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to, current and future market conditions; risks related to federal, state, provincial, territorial, local and foreign government laws, rules and regulations, including federal and state laws in the United States relating to cannabis operations in the United States ; and the risk factors set out in the Company's most recently filed MD&A, filed with the Canadian securities regulators and available under the Company's profile on SEDAR at www.sedar.com and in the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission on March 17, 2022 and as amended on March 24, 2022 .

The statements in this press release are made as of the date of this release. TerrAscend disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

SOURCE TerrAscend

Cision View original content to download multimedia: https://www.newswire.ca/en/releases/archive/May2023/16/c7831.html

News Provided by Canada Newswire via QuoteMedia

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TerrAscend Reports Record First Quarter 2023 Revenue

TerrAscend Reports Record First Quarter 2023 Revenue

First quarter 2023 record Net Revenue of $69.4 million , an increase of 42.8% year-over-year

6 th consecutive quarter of sequential revenue growth and 3 rd consecutive quarter of positive and increasing cash flow from operations

News Provided by Canada Newswire via QuoteMedia

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Cannabis leaf over map of Australia.

A State-by-State Guide to Cannabis in Australia

Australia federally legalised medicinal cannabis in 2016, and Australia's cannabis market has seen major growth since then.

Medical cannabis approvals were up by 120 percent in the first half of 2023 compared to the same period in 2022. Statista forecasts that Australian cannabis revenue will reach AU$3.73 billion in 2024 and grow at an annual rate of 3.22 percent, culminating in market volume worth AU$4.53 billion by 2029.

However, Australia’s cannabis industry is still young. Despite there being a strong case for a regulated market, which was outlined in a July 2024 report by the Penington Institute, recreational use is not legal and medical access remains limited and regulated.

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Cannabis leaf on road marked with "2025," with sunlight in the background.

New Cannabis Consumption Trends, Regulatory Shifts Seen Driving Market in 2025

Understanding trends in the cannabis industry is paramount for investors eyeing a market with steady growth potential, but the landscape is complex as products and regulations continue to evolve.

Consumption habits are changing as edibles, vaping and THC beverages gain traction, especially among younger users, and cannabis companies are adapting their offerings to meet shifting demand.

Meanwhile, regulatory uncertainty, particularly surrounding the future of the US Farm Bill and state-level restrictions on hemp-derived cannabinoids, continues to challenge the market.

Despite these headwinds, production data and long-term growth forecasts suggest the cannabis industry remains on a promising — albeit turbulent — path. Read on for more on key trends to watch in 2025.

Consumption methods evolving post-legalization

Shifts in consumer behavior are reshaping markets across the board, and the cannabis industry is no exception.

While smoking remains the dominant method of cannabis consumption, a recent report from the Centers for Disease Control and Prevention highlights the growing popularity of edibles, vaping and dabbing.

The report notes that vaping and dabbing are particularly pronounced among younger adults.

A separate study published by the American Medical Association and funded in part by the Canadian Institutes of Health Research also points to how product preferences have changed among Canadian users since legalization in 2018.


The study indicates that while the use of flower, cannabis concentrates, oil, tinctures and topicals has decreased during that time, the use of vape cartridges, edibles and beverages has increased.

Edibles and beverages were legalized in Canada in late 2019, and Truss Beverage was one of the first players to introduce cannabis-infused drinks. Truss was a joint venture formed by Molson Coors Canada (TSX:TPX.A,TSX:TPX.B) and HEXO, a cannabis company that has since been acquired by Tilray Brands (TSX:TLRY,NASDAQ:TLRY).

In early 2020, Tilray launched a lineup of confectionery, wellness products and beverages through its subsidiary, High Park; Canopy Growth (TSX:WEED,NASDAQ:CGC) made a similar move. These companies gradually brought their products to the US as more states legalized cannabis for medical and/or recreational use.

Today, established cannabis brands typically offer edibles and beverages alongside their other products. Organigram Global (TSX:OGI,NASDAQ:OGI) is one of the newest US entrants, with its April acquisition of Collective Project providing immediate access to the US hemp-derived THC beverage market.

Growing awareness of health and wellness, potentially amplified by the pandemic-led adoption of health trackers, appears to be making an impact on the alcoholic beverage market.

A 2023 Gallup poll reveals a two decade decline in alcohol consumption, particularly among younger adults, suggesting a shift towards more health-conscious lifestyles within this demographic.

Craft beer production declined by 4 percent year-on-year in 2024, according to data collected by the Brewers Association. This marked the largest drop in the industry's history, excluding the pandemic. For small, independent craft breweries, 2024 marked the third consecutive year of declining production. A drop in the number of operating small breweries last year provides further evidence of this trend, with 501 closures in 2024 versus 434 openings.

Challenges in the alcohol market extend beyond the brewing industry, with the New York Times recently reporting the closure of a handful of nightclubs facing decreased alcohol sales alongside rising insurance and rent costs.

Meanwhile, cannabis lounges have been popping up across the US for the last several years. As of early 2025, several states had legalized or were in the process of implementing regulations for cannabis consumption lounges.

Hemp market growth despite regulatory uncertainty

The burgeoning hemp industry is another segment of the expanding cannabis market.

The legalization of industrial hemp — defined as cannabis with a THC concentration of 0.3 percent or less — through the 2018 Farm Bill led to initial investment and optimistic projections for CBD wellness products and various industrial applications. The sector’s rapid evolution also brought the rise of hemp-derived intoxicating cannabinoids, creating a market that presented both opportunities and complexities for participants.

However, after an initial boom, a lack of infrastructure and clearly defined regulations for CBD, as well as state-level variations and market oversupply, ultimately contributed to a quick retraction.

2024 was a pivotal year for the US hemp industry, as the hemp-related provisions of the 2018 Farm Bill — originally set to expire in September 2023, but extended to December 31, 2024 — created an urgent need to address critical issues like THC limits and the regulation of novel hemp-derived cannabinoids. A major point of contention was the proposed shift from defining hemp based on Delta-9 THC concentration (0.3 percent or less) to “total THC,” which includes THCA.

This change had the potential to significantly impact farmers and processors, as many hemp varieties that are compliant under the Delta-9 THC rule could exceed the 0.3 percent limit when THCA is included.

Various bills and amendments were proposed in 2024 as part of the Farm Bill discussions, each with different approaches to regulating hemp. Separate regulatory frameworks for industrial hemp and hemp grown for cannabinoids were suggested, and many states took their own action, leading to a patchwork of regulations and even outright bans.

Despite challenges, data from the US Department of Agriculture suggests signs of recovery.

The department's annual National Hemp Report from 2024 points to an 18 percent increase in industrial hemp production value between 2022 and 2023, with output growth seen in specific sectors like floral (18 percent), fiber (133 percent) and seed hemp (414 percent). The 2025 report from the Department of Agriculture indicates further expansion, with notable increases observed in both acreage (up 64 percent from 2023) and value (46 percent).

The 2024 Farm Bill ultimately did not pass, and right now the hemp industry is operating under a temporary extension of the 2018 Farm Bill under the American Relief Act of 2025, signed into law on December 21, 2024.

The 2018 Farm Bill is now set to expire on September 30, 2025.

While analysts for Markets and Markets project that the North American hemp industry will grow at a CAGR of 22.4 percent and ultimately reach a valuation of US$30.24 billion by 2029, the future of the industry will be heavily influenced by the outcome of the ongoing Farm Bill discussions.

US cannabis legalization remains stalled

Although there is clear demand for cannabis products, the now-defunct rescheduling process in the US is likely to continue casting a shadow of uncertainty over the industry's long-term trajectory.

Legal and procedural delays, including allegations of improper conduct and bias within the US Drug Enforcement Administration (DEA), led to hearing cancellations, and the new administration of US President Donald Trump has brought leadership changes to key agencies like the DEA and the Department of Justice.

Terry Cole, who Trump nominated to be DEA administrator on February 11, has a history of opposing cannabis legalization in the country. Similarly, Pam Bondi, Trump’s pick to lead the justice department, staunchly opposed a movement to legalize medical cannabis during her tenure as Florida’s attorney general.

While there have been bipartisan efforts in Congress to end federal cannabis prohibition and establish regulations for eventual legalization, the DEA’s actions and statements indicate a potential stall or reversal of progress.

In addition to that, new research is adding complexity to the debate.

A study published in the American Journal of Psychiatry this past March highlights an association between the use of high-potency cannabis strains and increased risks of psychosis, a factor that may not have been fully considered by the Department of Health and Human Services. As stronger cannabis strains become more widely available, a reassessment of their potential health risks may be required.

Investor takeaway

While the cannabis industry holds promise for growth and innovation, investors must remain acutely aware of the regulatory uncertainties and market volatility that will undoubtedly shape its trajectory in the years to come.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

Person touching a cannabis plant; Australia map in flag colours.

ASX Cannabis Stocks: 10 Biggest Companies

While Australia has yet to legalise all forms of cannabis, the country is a growing medical cannabis and hemp market, with many companies manufacturing, researching and exporting the plant-based product.

Medical cannabis was federally legalised in 2016, and the export of cannabis from Australia was legalised in 2018. As for recreational use, the only state to legalise recreational use and possession so far is the Australian Capital Territory, which did so in 2020, but it did not establish a regulated recreational cannabis market.

The country's medical cannabis market has been steadily expanding in size and scope. A Penington Institute report shows that Australians spent approximately AU$400 million on medicinal cannabis in the first half of 2024, 72 percent higher than the AU$234 million they spent over the entirety of 2022.

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Cannabis leaves, gavel.

Cannabis Round-Up: Rescheduling Faces New Roadblocks, SAFER Banking Act Gets Another Look

February 2025 was characterized by an evolving legislative landscape and important financial updates from major players.

These developments underscore the complex and dynamic nature of the sector as it continues to navigate legal, financial, and regulatory challenges while experiencing ongoing growth and evolution.

Discussions around cannabis rescheduling, changes in federal agency leadership, state-level legalization efforts, and financial reports from key companies all contributed to a month of notable activity in the cannabis space.

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Cannabis leaves, US flag.

Cannabis Round-Up: Banking Reform and Rescheduling De-Prioritized as Trump Takes Office

As a new year began, the cannabis industry saw a range of impactful events in January.

Legal obstacles continued to impede progress on a once-promising attempt to reschedule cannabis in the US, and President Donald Trump's leadership choices for key agencies are diminishing hopes it can be accomplished.

Meanwhile, cannabis banking reform won't be discussed at Wednesday's (February 5) meeting of the Standing Senate Committee on Banking, Commerce and the Economy, and Congress seems in no rush to address it.

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Quarterly Activities/Appendix 4C Cash Flow Report

Quarterly Activities/Appendix 4C Cash Flow Report

BPH Global (BP8:AU) has announced Quarterly Activities/Appendix 4C Cash Flow Report

Download the PDF here.

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