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TerrAscend Announces Third Quarter 2018 Financial Results
–Revenue increased to $1.8 million–
–Haven St. brand successfully launched into Canadian adult-use market–
–Announced intention to explore and pursue U.S. growth strategy–
TORONTO, Nov. 21, 2018 /CNW/ – TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) (“TerrAscend” or the “Company”), today reported financial results for the third quarter, ending September 30, 2018. For the three months ended September 30, 2018, revenue increased to $1.8 million up from $9,000 in the previous quarter.
We are pleased with our progress in the Canadian market, having shipped both medical and adult-use cannabis in the quarter. The October launch of our premium-quality Haven St. brand was a major milestone, as we differentiate ourselves within the emerging adult-use cannabis market. With a month of adult-use sales behind us, we are thrilled to see that the Haven St. brand resonates not only with provincial buyers but with consumers as well.
Michael Nashat, TerrAscend’s President and Chief Executive Officer.
“As previously announced in October, we intend to explore and pursue growth opportunities in the U.S., including potential acquisitions of operators in states that have legalized cannabis for therapeutic or adult use. We have identified acquisition prospects with significant market share, strong brand recognition and substantial global potential. With an experienced management team, engaged board and supportive shareholder base, TerrAscend’s goal is to become the leading multi-state operator in the U.S. cannabis industry while continuing to capitalize on sizeable opportunities in Canada and the rest of the world,” concluded Nashat.
THIRD QUARTER 2018 AND RECENT COMPANY HIGHLIGHTS
- Launched Haven Street, a premium cannabis brand for the Canadian adult-use market, with 48 unique SKUs in dry flower and pre-roll forms;
- Announced its intention to pursue growth opportunities in the U.S., including potential acquisitions of operators in states that have legalized cannabis for therapeutic or adult use; further to, the Company entered into a plan of arrangement with Canopy Growth Corp. (TSX: WEED) (NYSE: CGC), Canopy Rivers Corp. (TSXV: RIV) and entities controlled by Jason Wild, Chairman of the Company, to reorganize the capital of the Company and obtain waivers of certain contractual covenants currently restricting TerrAscend from operating in the U.S., subject to a shareholder vote to be held on November 27, 2018;
- The Company secured supply agreements with the provinces of Ontario (25 SKUs), British Columbia (22 SKUs), Nova Scotia (15 SKUs) and Prince Edward Island (4 SKUs), to provide a variety of premium-branded cannabis products for the adult-use cannabis market, which commenced October 17, 2018;
- Began trading on OTCQX under the ticker symbol TRSSF;
- Entered into a multi-year off-take agreement with PharmHouse Inc., a joint venture between Canopy Rivers Inc., and the principals and operators of a leading North American greenhouse produce company; PharmHouse will supply dry cannabis to TerrAscend Canada from an existing 1.3 million square foot greenhouse located in Leamington, Ontario;
- Appointed Jeffrey J. Puglisi as Chief Corporate Officer responsible for the oversight and execution of the Company’s U.S. strategy, and Adam Kozak as Chief Financial Officer;
- Solace Health, the Company’s wholly owned subsidiary, entered into an agreement with MCI Medical Clinics Inc. – one of the largest primary medical care groups in Canada – to provide medical cannabis expertise to patients, and
- Entered into an agreement with MDM Insurance Services Inc. to establish a program for medical cannabis coverage and a framework for research on cannabis and medication utilization.
- For the three months ended September 30, 2018, revenue increased to $1.8 million. The Company had no revenue for the same period last year as it was ramping up its operations. The Company commenced medical sales and bulk sales to other Licensed Producers in April 2018 and adult-use sales in September 2018;
- Net loss was $2.8 million or $0.03 per share for the three months ended September 30, 2018, compared with a net loss of $1.5 million or $0.04 per share for the same period last year; and
- As of September 30, 2018, the Company held $15.1 million in cash and cash equivalents.
About TerrAscend Corp.
TerrAscend Corp. is a biopharmaceutical and wellness company that is committed to quality products, brands and services for the global cannabinoid market. On October 9, 2018, TerrAscend announced its intentions to expand into the U.S. market. The Company provides support to patients and consumers through its wholly-owned subsidiaries, TerrAscend Canada Inc., o/a Solace Health, a licensed producer of cannabis under the Cannabis Act, Solace Health Network Inc., a clinical support program and education platform led by healthcare professionals and the online marketplace for the licensed producer, o/a Solace Health. The Company will also participate in the adult-use market in Canada following legalization through direct and indirect supply agreements in several provinces. The Company holds a partnership with leading researchers in Ascendant Laboratories Inc., a cannabis biotechnology and licensing company committed to the continuous improvement of the cannabis plant.
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