TerrAscend Reports Third 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 third quarter ending September 30, 2022 . All amounts are expressed in U.S. dollars unless indicated otherwise and are prepared under U.S. Generally Accepted Accounting principles (GAAP).

 
 

  (CNW Group/TerrAscend) 

 
 

  Third Quarter 2022 Financial Highlights  

 
  •   Net Revenue increased 3.4% sequentially and 36.4% year over year to $67 million .
  •  
  •   Gross Profit Margin was 36.3%, compared to 35.5% in Q2 2022 and 43.7% in Q3 2021.
  •  
  •   Adjusted Gross Profit   Margin   1 was 46.1%, compared to 47.1% in Q2 2022 and 46.1% in Q3 2021.
  •  
  •   Adjusted EBITDA   1 was $11.3 million , an increase of 96% sequentially and 22.8% year over year.
  •  
  •   Adjusted EBITDA   Margin   1 was 16.9%, compared to 8.9% in Q2 2022 and 18.8% in Q3 of 2021.
  •  
  •   GAAP Net Loss was $311 million , compared to net income of $14.2 million in Q2 2022. A $331 non-cash impairment charge was recorded against goodwill and intangibles for the Company's Michigan business.
  •  
  •   Cashflow from Operations was positive $1.5 million , compared to negative $16.1 million in Q2 2022.
  •  
  •   Cash and Cash Equivalents totaled $34.3 million as of September 30, 2022 . Subsequent to the third quarter, the Company closed on a $45.5 million non-brokered senior secured term loan.
  •  

"We took decisive action to reduce our operating expenses in the quarter while still generating record sales. These factors combined to drive substantial improvement in adjusted EBITDA margins quarter over quarter and positive cash flow from operations." commented Jason Wild , Executive Chairman of TerrAscend, "Our strong brand presence is evidenced by our retail and wholesale results in New Jersey , where we have quickly established ourselves as a leading operator with three of the top ten flower SKUs, including #1. We look forward to deploying our branded strategy in Maryland and Pennsylvania when these states implement adult use." continued Wild.

 

  Financial Summary Q3 2022 and Comparative Periods  

 
 
                                                                                                                                                                                                                                                  
 

   (in millions of U.S. Dollars)   

 
 
 

   Q3 2021   

 
 
 
 

   Q2 2022   

 
 
 
 

   Q3 2022   

 
 
 

  Revenue, net  

 
 
 
 

  49.1  

 
 
 
 
 

  64.8  

 
 
 
 
 

  67.0  

 
 
 

   Quarter-over-Quarter increase   

 
 
 
 

   -16.3   

 
 

   %   

 
 
 
 

   30.5   

 
 

   %   

 
 
 
 

   3.4   

 
 

   %   

 
 

   Year-over-Year increase   

 
 
 
 

   28.9   

 
 

   %   

 
 
 
 

   10.4   

 
 

   %   

 
 
 
 

   36.4   

 
 

   %   

 
 
 
 
 
 
 
 
 
 
 
 

  Gross profit  

 
 
 
 

  21.5  

 
 
 
 
 

  23.0  

 
 
 
 
 

  24.4  

 
 
 

   Gross profit margin   

 
 
 
 

  43.7  

 
 

  %  

 
 
 
 

  35.5  

 
 

  %  

 
 
 
 

  36.3  

 
 

  %  

 
 

  Adjusted gross profit 1  

 
 
 
 

  22.7  

 
 
 
 
 

  30.5  

 
 
 
 
 

  30.9  

 
 
 

   Adjusted gross margin %   

 
 
 
 

   46.1   

 
 

   %   

 
 
 
 

   47.1   

 
 

   %   

 
 
 
 

   46.1   

 
 

   %   

 
 
 
 
 
 
 
 
 
 
 
 

  Share-based compensation expense  

 
 
 
 

  5.2  

 
 
 
 
 

  4.4  

 
 
 
 
 

  2.6  

 
 
 

  General & Administrative expense (excluding share based compensation)  

 
 
 
 

  16.1  

 
 
 
 
 

  29.5  

 
 
 
 
 

  26.7  

 
 
 

   % of revenue, net   

 
 
 
 

   32.8   

 
 

   %   

 
 
 
 

   45.5   

 
 

   %   

 
 
 
 

   39.8   

 
 

   %   

 
 
 
 
 
 
 
 
 
 
 
 

  Net income (loss)  

 
 
 
 

  55.8  

 
 
 
 
 

  14.2  

 
 
 
 
 

  (311.0)  

 
 
 
 
 
 
 
 
 
 
 
 
 

  Adjusted EBITDA 1  

 
 
 
 

  9.2  

 
 
 
 
 

  5.8  

 
 
 
 
 

  11.3  

 
 
 

   Adjusted EBITDA % of revenue, net   

 
 
 
 

   18.8   

 
 

   %   

 
 
 
 

   8.9   

 
 

   %   

 
 
 
 

   16.9   

 
 

   %   

 
 
 
 
 
 
 
 
 
 
 
 

  Cash provided by (used in) operations  

 
 
 
 

  (17.9)  

 
 
 
 
 

  (16.1)  

 
 
 
 
 

  1.5  

 
 
 
 
 
  
 
 

  1. Adjusted Gross Profit and Adjusted Gross Profit Margin, and Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP measures. Please see discussion of non-GAAP measures and reconciliation to Gross Profit and Net Income (Loss), the closest comparable GAAP measures at the end of this press release.  

 
 
 

 

 

  Third Quarter 2022 Business and Operational Highlights  

 
  • Entered into an agreement to exclusively introduce the Cookies brand to Pennsylvania .
  •  
  • Appointed Karim Bouaziz as President of the Northeast Region.
  •  
  • Closed on the acquisition of Pinnacle in Michigan , which includes six dispenary licenses, five of which are currently operational.
  •  
  • Opened third New Jersey Apothecarium Dispensary in Lodi .
  •  
  • Opened "Cookies Corners" at all three Apothecarium locations in New Jersey .
  •  

  Subsequent Events  

 
  • Introdroduced Gage and Cookies brands in Pennsylvania .
  •  
  • Closed on a non-brokered senior secured term loan in an aggregate principal amount of approximately $45.5 million .
  •  

  Third Quarter 2022 Financial Results  

 

Net revenue for the third quarter totaled $67 million , an increase of 3.4% sequentially and 36.4% year-over-year. The sequential growth was primarily driven by strong results in New Jersey and a partial quarter benefit from the Pinnacle acquisition, partially offset by a decline in wholesale sales in Pennsylvania and challenging retail trends in Pennsylvania and Michigan.

 

Gross margin for the quarter was 36.3%, impacted by a $6 million USD write-off of inventory in Canada.  Adjusted gross margin for the quarter, excluding the inventory write-off in Canada , was 46.1% compared to 47.1% in the previous quarter, a decline of 100 basis points sequentially, driven mainly by temporary operational drags from Maryland and Canada.  The Company has now fully exited its legacy facility in Maryland and has scaled down the business in Canada such that neither of these areas are expected to be a material drag on gross margin beginning in 2023.

 

General and Administrative expenses (G&A) for the quarter were reduced by $2.8 million , or almost 10%, to $26.7 million , or 39.8% of revenue, compared to $29.5 million , or 45.5% of revenue, in the second quarter.  The $26.7 million in the third quarter included $3 million of one-time items mainly related to severance and legal settlements.    The cost reductions, partly driven by a 12% reduction in the Company's workforce, are expected to generate further savings into the fourth quarter as the Company realizes a full quarter of the benefit, without the one-time costs.

 

Adjusted EBITDA for the quarter was $11.3 million versus $5.8 million in the previous quarter, representing a 96% increase sequentially. Adjusted EBITDA margin improved 800 basis points to 16.9% in the third quarter from 8.9% in the second quarter, driven by operating expense reductions.

 

GAAP net loss for the third quarter was $311 million compared to $14.2 million of net income for the previous quarter.  The net loss for the quarter was driven by a $331 million non-cash impairment to goodwill and intangibles of its Michigan business.

 

  Balance Sheet and Cash Flow  

 

Ending cash position for the third quarter was $34.3 million .  Following the quarter end, the Company closed on a $45.5 million non-brokered debt financing.

 

Cash flow from operations totaled a positive $1.5 million in the third quarter, a significant improvement versus negative cash flow from operations of $16.1 million in the second quarter, which included $9 million of taxes paid.

 

Capital expenditures were $3.6 million in the third quarter, primarily related to the recently completed expansion at TerrAscend's Hagerstown facility. The Company also closed on the acquisition of Pinnacle, which included a $10 million cash component.

 

As of November 11, 2022 , there were 324 million shares outstanding including 259 million common shares, 13 million preferred shares as converted, and 52 million exchangeable shares, using the treasury method.

 

  Conference Call  

 

TerrAscend will host a conference call today, November 14, 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 5:00 p.m. Eastern time . A question-and-answer session will follow management's presentation.

 
 
            
 

  DATE:  

 
 

  Monday, November 14, 2022  

 
 

  TIME:  

 
 

  5:00 p.m. Eastern Time  

 
 

  WEBCAST:  

 
 

   Click Here   

 
 

  DIAL-IN NUMBER:  

 
 

  1-888-664-6392  

 
 

  CONFERENCE ID:  

 
 

  17993713  

 
 

  REPLAY:  

 

   

 
 

  416-764-8677 or 1-888-390-0541
Available until 12:00 midnight Eastern Time Monday, November 28, 2022
 

 

  Replay Code: 993713#  

 
 
 

 

 

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 September 30, 2022 , June 30,2022 , and September 30, 2021 :

 
 
                                                                                                     
 
 

   For the Three Months Ended   

 
 
 

   (in millions of U.S. Dollars)   

 
 
 

   September 30,
2021
 
 

 
 
 
 

   June 30,
2022
 
 

 
 
 
 

   September 30,
2022
 
 

 
 
 

  Gross profit  

 
 
 
 

  21,497  

 
 
 
 
 

  22,993  

 
 
 
 
 

  24,363  

 
 
 

   Add (deduct) the impact of:   

 
 
 
 
 
 
 
 
 
 
 

  Relief of fair value of inventory upon acquisition  

 
 
 
 

  1,163  

 
 
 
 
 

  549  

 
 
 
 
 

  415  

 
 
 

  Non-cash write downs of inventory  

 
 
 
 

  

 
 
 
 
 

  5,894  

 
 
 
 
 

  6,037  

 
 
 

  Vape recall  

 
 
 
 

  

 
 
 
 
 

  1,071  

 
 
 
 
 

  

 
 
 

  Facility transition costs  

 
 
 
 

  

 
 
 
 
 

  

 
 
 
 
 

  107  

 
 
 

   Adjusted gross profit   

 
 
 
 

   22,660   

 
 
 
 
 

   30,507   

 
 
 
 
 

   30,922   

 
 
 
 

 

 

The table below reconciles net loss to EBITDA and Adjusted EBITDA for the quarters ended September 30, 2022 , June 30, 2022 , and September 30, 2021 :

 
 
                                                                                                                                                                                                                                                                                                               
 
 

   For the Three Months Ended   

 
 
 
 
 

   September 30,
2021
 
 

 
 
 
 

   June 30,
2022
 
 

 
 
 
 

   September 30,
2022
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 

  Net income (loss)  

 
 
 

  $  

 
 

  55,835  

 
 
 
 

  $  

 
 

  14,162  

 
 
 
 

  $  

 
 

  (310,985)  

 
 
 

   Add (deduct) the impact of:   

 
 
 
 
 
 
 
 
 
 
 

  Provision for income taxes  

 
 
 
 

  4,999  

 
 
 
 
 

  4,688  

 
 
 
 
 

  (34,033)  

 
 
 

  Finance expenses  

 
 
 
 

  6,351  

 
 
 
 
 

  9,427  

 
 
 
 
 

  10,092  

 
 
 

  Amortization and depreciation  

 
 
 
 

  4,200  

 
 
 
 
 

  7,046  

 
 
 
 
 

  7,110  

 
 
 

   EBITDA   

 
 
 
 

   71,385   

 
 
 
 
 

   35,323   

 
 
 
 
 

   (327,816)   

 
 
 

   Add (deduct) the impact of:   

 
 
 
 
 
 
 
 
 
 
 

  Relief of fair value of inventory upon acquisition  

 
 
 
 

  1,163  

 
 
 
 
 

  549  

 
 
 
 
 

  415  

 
 
 

  Non-cash write downs of inventory  

 
 
 
 

  

 
 
 
 
 

  5,894  

 
 
 
 
 

  6,037  

 
 
 

  Vape recall  

 
 
 
 

  

 
 
 
 
 

  1,071  

 
 
 
 
 

  

 
 
 

  Share-based compensation  

 
 
 
 

  5,178  

 
 
 
 
 

  4,463  

 
 
 
 
 

  2,705  

 
 
 

  Impairment of goodwill and intangible assets  

 
 
 
 

  

 
 
 
 
 

  331,242  

 
 
 
 
 

  331,242  

 
 
 

  Loss (gain) on disposal of fixed assets  

 
 
 
 

  220  

 
 
 
 
 

  929  

 
 
 
 
 

  (81)  

 
 
 

  Revaluation of contingent consideration  

 
 
 
 

  (338)  

 
 
 
 
 

  34  

 
 
 
 
 

  36  

 
 
 

  Restructuring and executive severance  

 
 
 
 

  450  

 
 
 
 
 

  

 
 
 
 
 

  1,443  

 
 
 

  Legal settlements  

 
 
 
 

  

 
 
 
 
 

  

 
 
 
 
 

  1,170  

 
 
 

  Other one-time items  

 
 
 
 

  1,365  

 
 
 
 
 

  924  

 
 
 
 
 

  1,311  

 
 
 

  Gain on fair value of warrants and purchase option derivative asset  

 
 
 
 

  (69,016)  

 
 
 
 
 

  (47,345)  

 
 
 
 
 

  (5,497)  

 
 
 

  Indemnification asset release  

 
 
 
 

  95  

 
 
 
 
 

  3,998  

 
 
 
 
 

  

 
 
 

  Unrealized and realized loss (gain) on investments  

 
 
 
 

  

 
 
 
 
 

  234  

 
 
 
 
 

  (231)  

 
 
 

  Unrealized and realized foreign exchange loss (gain)  

 
 
 
 

  (1,256)  

 
 
 
 
 

  (306)  

 
 
 
 
 

  586  

 
 
 

   Adjusted EBITDA   

 
 
 

   $   

 
 

   9,246   

 
 
 
 

   $   

 
 

   337,010   

 
 
 
 

   $   

 
 

   11,320   

 
 
 
 

 

 

  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 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. 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   

 
 
 
 
 

   September 30, 2022   

 
 
 
 

   December 31, 2021   

 
 
 

   Assets   

 
 
 
 
 
 
 
 

   Current Assets   

 
 
 
 
 
 
 
 

  Cash and cash equivalents  

 
 
 

  $  

 
 

  34,288  

 
 
 
 

  $  

 
 

  79,642  

 
 
 

  Restricted cash  

 
 
 
 

  1,031  

 
 
 
 
 

  

 
 
 

  Accounts receivable, net  

 
 
 
 

  17,937  

 
 
 
 
 

  14,920  

 
 
 

  Investments  

 
 
 
 

  3,556  

 
 
 
 
 

  

 
 
 

  Inventory  

 
 
 
 

  49,391  

 
 
 
 
 

  42,323  

 
 
 

  Prepaid Expenses and other current assets  

 
 
 
 

  7,194  

 
 
 
 
 

  6,336  

 
 
 
 
 
 

  113,397  

 
 
 
 
 

  143,221  

 
 
 

   Non-Current Assets   

 
 
 
 
 
 
 
 

  Property and equipment, net  

 
 
 
 

  244,125  

 
 
 
 
 

  140,762  

 
 
 

  Deposits  

 
 
 
 

  1,455  

 
 
 
 
 

  1,977  

 
 
 

  Operating lease right of use assets  

 
 
 
 

  30,044  

 
 
 
 
 

  29,561  

 
 
 

  Intangible assets, net  

 
 
 
 

  240,503  

 
 
 
 
 

  168,984  

 
 
 

  Goodwill  

 
 
 
 

  90,326  

 
 
 
 
 

  90,326  

 
 
 

  Indemnification asset  

 
 
 
 

  

 
 
 
 
 

  3,969  

 
 
 

  Other non-current assets  

 
 
 
 

  5,638  

 
 
 
 
 

  3,134  

 
 
 
 
 
 

  612,091  

 
 
 
 
 

  438,713  

 
 
 

   Total Assets   

 
 
 

   $   

 
 

   725,488   

 
 
 
 

   $   

 
 

   581,934   

 
 
 
 
 
 
 
 
 
 

   Liabilities and Shareholders' Equity   

 
 
 
 
 
 
 
 

   Current Liabilities   

 
 
 
 
 
 
 
 

  Accounts payable and accrued liabilities  

 
 
 

  $  

 
 

  61,680  

 
 
 
 

  $  

 
 

  30,340  

 
 
 

  Deferred revenue  

 
 
 
 

  2,309  

 
 
 
 
 

  1,071  

 
 
 

  Loans payable, current  

 
 
 
 

  75,305  

 
 
 
 
 

  8,837  

 
 
 

  Contingent consideration payable, current  

 
 
 
 

  4,434  

 
 
 
 
 

  9,982  

 
 
 

  Operating lease liability, current  

 
 
 
 

  1,582  

 
 
 
 
 

  1,171  

 
 
 

  Lease obligations under finance leases, current  

 
 
 
 

  369  

 
 
 
 
 

  22  

 
 
 

  Corporate income tax payable  

 
 
 
 

  23,088  

 
 
 
 
 

  9,621  

 
 
 

  Other current liabilities  

 
 
 
 

  3,575  

 
 
 
 
 

  -  

 
 
 
 
 
 

  172,342  

 
 
 
 
 

  61,044  

 
 
 

   Non-Current Liabilities   

 
 
 
 
 
 
 
 

  Loans payable, non-current  

 
 
 
 

  172,322  

 
 
 
 
 

  176,306  

 
 
 

  Contingent consideration payable, non-current  

 
 
 
 

  1,250  

 
 
 
 
 

  2,553  

 
 
 

  Operating lease liability, non-current  

 
 
 
 

  31,058  

 
 
 
 
 

  30,573  

 
 
 

  Lease obligations under finance leases, non-current  

 
 
 
 

  4,698  

 
 
 
 
 

  181  

 
 
 

  Warrant liability  

 
 
 
 

  679  

 
 
 
 
 

  54,986  

 
 
 

  Deferred income tax liability  

 
 
 
 

  40,414  

 
 
 
 
 

  14,269  

 
 
 

  Financing obligations  

 
 
 
 

  11,408  

 
 
 
 
 

  

 
 
 

  Other long term liabilities  

 
 
 
 

  12,495  

 
 
 
 
 

  13,068  

 
 
 
 
 
 

  274,324  

 
 
 
 
 

  291,936  

 
 
 

   Total Liabilities   

 
 
 
 

  446,666  

 
 
 
 
 

  352,980  

 
 
 

   Commitments and Contingencies   

 
 
 
 
 
 
 
 

   Shareholders' Equity   

 
 
 
 
 
 
 
 

  Share Capital  

 
 
 
 
 
 
 
 

  Series A, convertible preferred stock, no par value, unlimited shares authorized; 12,658 and 13,708 shares outstanding as of
September 30, 2022 and December 31, 2021, respectively
 

 
 
 
 

  

 
 
 
 
 

  

 
 
 

  Series B, convertible preferred stock, no par value, unlimited shares authorized; 610 and 610 shares outstanding as of
September 30, 2022 and December 31, 2021, respectively
 

 
 
 
 

  

 
 
 
 
 

  

 
 
 

  Series C, convertible preferred stock, no par value, unlimited shares authorized; nil and 36 shares outstanding as of
September 30, 2022 and December 31, 2021, respectively
 

 
 
 
 

  

 
 
 
 
 

  

 
 
 

  Series D, convertible preferred stock, no par value, unlimited shares authorized; nil and nil shares outstanding as of
September 30, 2022 and December 31, 2021, respectively
 

 
 
 
 

  

 
 
 
 
 

  

 
 
 

  Proportionate voting shares, no par value, unlimited shares authorized; nil and nil shares outstanding as of September 30, 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
September 30, 2022 and December 31, 2021, respectively
 

 
 
 
 

  

 
 
 
 
 

  

 
 
 

  Common stock, no par value, unlimited shares authorized; 257,860,852 and 190,930,800 shares outstanding as of
September 30, 2022 and December 31, 2021, respectively
 

 
 
 
 

  

 
 
 
 
 

  

 
 
 

  Additional paid in capital  

 
 
 
 

  877,298  

 
 
 
 
 

  535,418  

 
 
 

  Accumulated other comprehensive income (loss)  

 
 
 
 

  1,694  

 
 
 
 
 

  2,823  

 
 
 

  Accumulated deficit  

 
 
 
 

  (605,336)  

 
 
 
 
 

  (314,654)  

 
 
 

  Non-controlling interest  

 
 
 
 

  5,166  

 
 
 
 
 

  5,367  

 
 
 

   Total Shareholders' Equity   

 
 
 
 

  278,822  

 
 
 
 
 

  228,954  

 
 
 

   Total Liabilities and Shareholders' Equity   

 
 
 

   $   

 
 

   725,488   

 
 
 
 

   $   

 
 

   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   

 
 
 
 

   For the Nine Months Ended   

 
 
 
 
 

   September 30,
2022
 
 

 
 
 
 

   September 30,
2021
 
 

 
 
 
 
 

   September 30,
2022
 
 

 
 
 
 

   September 30,
2021
 
 

 
 
 

   Revenue   

 
 
 

  $  

 
 

  67,726  

 
 
 
 

  $  

 
 

  50,537  

 
 
 
 
 

  $  

 
 

  183,538  

 
 
 
 

  $  

 
 

  169,010  

 
 
 

  Excise and cultivation tax  

 
 
 
 

  (701)  

 
 
 
 
 

  (1,398)  

 
 
 
 
 
 

  (2,050)  

 
 
 
 
 

  (7,794)  

 
 
 

   Revenue, net   

 
 
 
 

   67,025   

 
 
 
 
 

   49,139   

 
 
 
 
 
 

   181,488   

 
 
 
 
 

   161,216   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Cost of Sales  

 
 
 
 

  42,662  

 
 
 
 
 

  27,642  

 
 
 
 
 
 

  118,992  

 
 
 
 
 

  69,942  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Gross profit  

 
 
 
 

  24,363  

 
 
 
 
 

  21,497  

 
 
 
 
 
 

  62,496  

 
 
 
 
 

  91,274  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Operating expenses:  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  General and administrative  

 
 
 
 

  29,385  

 
 
 
 
 

  21,320  

 
 
 
 
 
 

  85,918  

 
 
 
 
 

  62,462  

 
 
 

  Amortization and depreciation  

 
 
 
 

  3,032  

 
 
 
 
 

  1,947  

 
 
 
 
 
 

  8,666  

 
 
 
 
 

  5,664  

 
 
 

  Impairment of intangible assets  

 
 
 
 

  152,928  

 
 
 
 
 

  

 
 
 
 
 
 

  152,928  

 
 
 
 
 

  3,633  

 
 
 

  Impairment of goodwill  

 
 
 
 

  178,314  

 
 
 
 
 

  

 
 
 
 
 
 

  178,314  

 
 
 
 
 

  5,007  

 
 
 

   Total operating expenses   

 
 
 
 

  363,659  

 
 
 
 
 

  23,267  

 
 
 
 
 
 

  425,826  

 
 
 
 
 

  76,766  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   (Loss) income from operations   

 
 
 
 

  (339,296)  

 
 
 
 
 

  (1,770)  

 
 
 
 
 
 

  (363,330)  

 
 
 
 
 

  14,508  

 
 
 

   Other expense (income)   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Revaluation of contingent consideration  

 
 
 
 

  36  

 
 
 
 
 

  (338)  

 
 
 
 
 
 

  189  

 
 
 
 
 

  2,652  

 
 
 

  Gain on fair value of warrants and purchase option derivative asset  

 
 
 
 

  (5,497)  

 
 
 
 
 

  (69,016)  

 
 
 
 
 
 

  (58,555)  

 
 
 
 
 

  (43,715)  

 
 
 

  Finance and other expenses  

 
 
 
 

  9,469  

 
 
 
 
 

  6,972  

 
 
 
 
 
 

  30,227  

 
 
 
 
 

  22,281  

 
 
 

  Transaction and restructuring costs  

 
 
 
 

  1,359  

 
 
 
 
 

  1,034  

 
 
 
 
 
 

  2,601  

 
 
 
 
 

  1,466  

 
 
 

  Unrealized and realized foreign exchange loss (gain)  

 
 
 
 

  586  

 
 
 
 
 

  (1,256)  

 
 
 
 
 
 

  636  

 
 
 
 
 

  4,582  

 
 
 

  Unrealized and realized (gain) loss on investments  

 
 
 
 

  (231)  

 
 
 
 
 

  

 
 
 
 
 
 

  3  

 
 
 
 
 

  (6,192)  

 
 
 

   (Loss) income before provision from income taxes   

 
 
 
 

  (345,018)  

 
 
 
 
 

  60,834  

 
 
 
 
 
 

  (338,431)  

 
 
 
 
 

  33,434  

 
 
 

  Provision for income taxes  

 
 
 
 

  (34,033)  

 
 
 
 
 

  4,999  

 
 
 
 
 
 

  (25,602)  

 
 
 
 
 

  21,372  

 
 
 

   Net (loss) income   

 
 
 

  $  

 
 

  (310,985)  

 
 
 
 

  $  

 
 

  55,835  

 
 
 
 
 

  $  

 
 

  (312,829)  

 
 
 
 

  $  

 
 

  12,062  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Foreign currency translation  

 
 
 
 

  (2,758)  

 
 
 
 
 

  1,745  

 
 
 
 
 
 

  1,129  

 
 
 
 
 

  (3,469)  

 
 
 

   Comprehensive (loss) income   

 
 
 

  $  

 
 

  (308,227)  

 
 
 
 

  $  

 
 

  54,090  

 
 
 
 
 

  $  

 
 

  (313,958)  

 
 
 
 

  $  

 
 

  15,531  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Net (loss) income attributable to:   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Common and proportionate Shareholders of the Company  

 
 
 

  $  

 
 

  (313,212)  

 
 
 
 

  $  

 
 

  54,428  

 
 
 
 
 

  $  

 
 

  (316,352)  

 
 
 
 

  $  

 
 

  9,594  

 
 
 

  Non-controlling interests  

 
 
 
 

  2,227  

 
 
 
 
 

  1,407  

 
 
 
 
 
 

  3,523  

 
 
 
 
 

  2,468  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Comprehensive (loss) income attributable to:   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Common and proportionate Shareholders of the Company  

 
 
 

  $  

 
 

  (310,454)  

 
 
 
 

  $  

 
 

  52,683  

 
 
 
 
 

  $  

 
 

  (317,481)  

 
 
 
 

  $  

 
 

  13,063  

 
 
 

  Non-controlling interests  

 
 
 
 

  2,227  

 
 
 
 
 

  1,407  

 
 
 
 
 
 

  3,523  

 
 
 
 
 

  2,468  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

   Net (loss) income per share, basic and diluted   

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

  Net (loss) income per share - basic  

 
 
 

  $  

 
 

  (1.23)  

 
 
 
 

  $  

 
 

  0.30  

 
 
 
 
 

  $  

 
 

  (1.32)  

 
 
 
 

  $  

 
 

  0.05  

 
 
 

  Weighted average number of outstanding common and proportionate voting shares  

 
 
 
 

  254,355,792  

 
 
 
 
 

  184,438,592  

 
 
 
 
 
 

  239,567,866  

 
 
 
 
 

  179,441,224  

 
 
 

  Net (loss) income per share - diluted  

 
 
 

  $  

 
 

  (1.23)  

 
 
 
 

  $  

 
 

  0.25  

 
 
 
 
 

  $  

 
 

  (1.32)  

 
 
 
 

  $  

 
 

  0.04  

 
 
 

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

 
 
 
 

  254,355,792  

 
 
 
 
 

  214,134,641  

 
 
 
 
 
 

  239,567,866  

 
 
 
 
 

  214,756,569  

 
 
 
 

 

 

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

 
 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
 
 

   For the Nine Months Ended   

 
 
 
 
 

   September 30, 2022   

 
 
 
 

   September 30, 2021   

 
 
 

   Operating activities   

 
 
 
 
 
 
 
 

  Net (loss) income  

 
 

  $  

 
 
 

  (312,829)  

 
 
 

  $  

 
 
 

  12,062  

 
 
 

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

 
 
 
 
 
 
 
 

  Non-cash write downs of inventory  

 
 
 
 

  14,873  

 
 
 
 
 

  961  

 
 
 

  Accretion expense  

 
 
 
 

  5,793  

 
 
 
 
 

  1,981  

 
 
 

  Depreciation of property and equipment and amortization of intangible assets  

 
 
 
 

  19,241  

 
 
 
 
 

  11,250  

 
 
 

  Amortization of operating right-of-use assets  

 
 
 
 

  1,513  

 
 
 
 
 

  1,289  

 
 
 

  Share-based compensation  

 
 
 
 

  10,524  

 
 
 
 
 

  13,393  

 
 
 

  Deferred income tax recovery  

 
 
 
 

  (44,266)  

 
 
 
 
 

  (682)  

 
 
 

  Loss on fair value of warrants and purchase option derivative  

 
 
 
 

  (58,555)  

 
 
 
 
 

  (43,715)  

 
 
 

  Revaluation of contingent consideration  

 
 
 
 

  189  

 
 
 
 
 

  2,652  

 
 
 

  Impairment of intangible assets  

 
 
 
 

  152,928  

 
 
 
 
 

  3,633  

 
 
 

  Impairment of goodwill  

 
 
 
 

  178,314  

 
 
 
 
 

  5,007  

 
 
 

  Loss on disposal of fixed assets  

 
 
 
 

  848  

 
 
 
 
 

  

 
 
 

  Release of indemnification asset  

 
 
 
 

  3,973  

 
 
 
 
 

  3,891  

 
 
 

  Forgiveness of loan principal and interest  

 
 
 
 

  

 
 
 
 
 

  (766)  

 
 
 

  Unrealized and realized foreign exchange loss  

 
 
 
 

  636  

 
 
 
 
 

  4,582  

 
 
 

  Unrealized and realized loss (gain) on investments  

 
 
 
 

  3  

 
 
 
 
 

  (6,192)  

 
 
 

  Changes in operating assets and liabilities  

 
 
 
 
 
 
 
 

  Receivables  

 
 
 
 

  4,317  

 
 
 
 
 

  1,144  

 
 
 

  Inventory  

 
 
 
 

  (1,894)  

 
 
 
 
 

  (10,450)  

 
 
 

  Prepaid expense and deposits  

 
 
 
 

  721  

 
 
 
 
 

  (523)  

 
 
 

  Deposits  

 
 
 
 

  2,340  

 
 
 
 
 

  (408)  

 
 
 

  Other assets  

 
 
 
 

  (1,522)  

 
 
 
 
 

  (4,214)  

 
 
 

  Accounts payable and accrued liabilities and other payables  

 
 
 
 

  (9,530)  

 
 
 
 
 

  (590)  

 
 
 

  Operating lease liability  

 
 
 
 

  (889)  

 
 
 
 
 

  3,750  

 
 
 

  Other liability  

 
 
 
 

  (9,627)  

 
 
 
 
 

  (11,394)  

 
 
 

  Contingent consideration payable  

 
 
 
 

  (410)  

 
 
 
 
 

  (14,978)  

 
 
 

  Corporate income tax payable  

 
 
 
 

  9,451  

 
 
 
 
 

  305  

 
 
 

  Deferred revenue  

 
 
 
 

  427  

 
 
 
 
 

  

 
 
 

   Net cash used in operating activities   

 
 
 
 

  (33,431)  

 
 
 
 
 

  (28,012)  

 
 
 

   Investing activities   

 
 
 
 
 
 
 
 

  Investment in property and equipment  

 
 
 
 

  (24,678)  

 
 
 
 
 

  (26,706)  

 
 
 

  Investment in intangible assets  

 
 
 
 

  (1,330)  

 
 
 
 
 

  (342)  

 
 
 

  Principal payments received on lease receivable  

 
 
 
 

  394  

 
 
 
 
 

  559  

 
 
 

  Distributions of earnings from associates  

 
 
 
 

  

 
 
 
 
 

  469  

 
 
 

  Deposits for property and equipment  

 
 
 
 

  (1,455)  

 
 
 
 
 

  (1,739)  

 
 
 

  Deposits for business acquisition  

 
 
 
 

  (852)  

 
 
 
 
 

  (25,000)  

 
 
 

  Payments made for land contracts  

 
 
 
 

  (888)  

 
 
 
 
 

  

 
 
 

  Net cash received on acquisition, net of cash paid  

 
 
 
 

  16,227  

 
 
 
 
 

  (42,736)  

 
 
 

   Net cash used in investing activities   

 
 
 
 

  (12,582)  

 
 
 
 
 

  (95,495)  

 
 
 

   Financing activities   

 
 
 
 
 
 
 
 

  Proceeds from options and warrants exercised  

 
 
 
 

  24,158  

 
 
 
 
 

  14,042  

 
 
 

  Loan principal paid  

 
 
 
 

  (6,088)  

 
 
 
 
 

  (2,250)  

 
 
 

  Loan amendment fee paid  

 
 
 
 

  (2,309)  

 
 
 
 
 

  

 
 
 

  Proceeds from loans payable  

 
 
 
 

  

 
 
 
 
 

  766  

 
 
 

  Cash distributions to NJ partners  

 
 
 
 

  (1,436)  

 
 
 
 
 

  

 
 
 

  Capital contributions (paid) received (to) from non-controlling interests  

 
 
 
 

  (1,237)  

 
 
 
 
 

  174  

 
 
 

  Payments of contingent consideration  

 
 
 
 

  (6,630)  

 
 
 
 
 

  (18,274)  

 
 
 

  Payments made for financing obligations  

 
 
 
 

  (921)  

 
 
 
 
 

  

 
 
 

  Proceeds from private placement, net of share issuance costs  

 
 
 
 

  

 
 
 
 
 

  173,477  

 
 
 

   Net cash provided by financing activities   

 
 
 
 

  5,537  

 
 
 
 
 

  167,935  

 
 
 

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

 
 
 
 

  (40,476)  

 
 
 
 
 

  44,428  

 
 
 

  Net effects of foreign exchange  

 
 
 
 

  (3,847)  

 
 
 
 
 

  (1,016)  

 
 
 

   Cash and cash equivalents and restricted cash, beginning of period   

 
 
 
 

  79,642  

 
 
 
 
 

  59,226  

 
 
 

   Cash and cash equivalents and restricted cash, end of period   

 
 

  $  

 
 
 

  35,319  

 
 
 

  $  

 
 
 

  102,638  

 
 
 
 
 
 
 
 
 
 

   Supplemental disclosure with respect to cash flows   

 
 
 
 
 
 
 
 

  Income taxes paid  

 
 

  $  

 
 
 

  9,213  

 
 
 

  $  

 
 
 

  37,032  

 
 
 

  Interest paid  

 
 

  $  

 
 
 

  20,643  

 
 
 

  $  

 
 
 

  17,408  

 
 
 

  Lease termination fee paid  

 
 

  $  

 
 
 

  3,300  

 
 
 
 
 

  -  

 
 
 

   Non-cash transactions   

 
 
 
 
 
 
 
 

  Equity and warrant liability issued as consideration for acquisition  

 
 

  $  

 
 
 

  337,739  

 
 
 

  $  

 
 
 

  34,427  

 
 
 

  Promissory note issued as consideration for acquisitions  

 
 

  $  

 
 
 

  10,000  

 
 
 

  $  

 
 
 

  6,750  

 
 
 

  Investment in NJ Partnership  

 
 

  $  

 
 
 

  -  

 
 
 

  $  

 
 
 

  25,000  

 
 
 

  Shares issued for liability settlement  

 
 

  $  

 
 
 

  264  

 
 
 

  $  

 
 
 

  -  

 
 
 

  Accrued capital purchases  

 
 

  $  

 
 
 

  12,118  

 
 
 

  $  

 
 
 

  4,655  

 
 
 
 

 

 
 
 

SOURCE TerrAscend

 

 

 

 Cision View original content to download multimedia: https://www.newswire.ca/en/releases/archive/November2022/14/c7457.html  

 
 

News Provided by Canada Newswire via QuoteMedia

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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  

 
 

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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  

 
 

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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  

 

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Closeup of lush green cannabis leaves.

Thailand Reverses Course on Cannabis, Moves to Recriminalize Amid Political Fallout

Thailand’s groundbreaking experiment with cannabis decriminalization is rapidly unraveling, with the government formally moving to reclassify the plant as a narcotic and ban recreational sales.

The decision has sent shockwaves through an industry once projected to be worth over US$1 billion.

The country’s Ministry of Public Health issued an order this week stating that cannabis only be sold with a medical prescription, effectively ending a short-lived era of liberal recreational access.

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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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