TerrAscend Issues First-Time Full Year 2019 Revenue Guidance
TORONTO, April 15, 2019 /PRNewswire/ – TerrAscend Corp. (CSE: TER;OTCQX: TRSSF) (“TerrAscend” or “the Company”) today announced that it anticipates 2019 full year revenue exceeding CAD$135 million.¹
Key drivers of 2019 revenue include:
- Anticipated revenue attributable to the acquisition of The Apothecarium (anticipated closing in Q2 2019);
- Continued growth in Canada in both the medical and adult-use markets, fueled by the ongoing expansion of the Company’s Mississauga facility (to be completed in Q2 2019) and commencement of pharmaceutical and nutraceutical compounding activities at the Drug Preparation Premises (DPP);
- Worldwide sales growth of hemp-derived products developed, manufactured, and distributed by Arise Bioscience; and
- Export of THC and hemp-based CBD products to Germany and other international markets once GMP certification is obtained (expected in the coming weeks).
The Company expects to open new Apothecarium locations in Berkeley, California and Philipsburg, New Jersey as well as a fully vertically integrated cultivation, extraction and processing facility in Boonton, New Jersey in Q4 2019. The Company has not included revenue from these operations in 2019 guidance.
We are seeing the results of the foundation we laid in 2018. Our team is focused on operational excellence in our facilities across North America, continuing to procure new licenses across the US through greenfield license applications and strategic acquisitions of existing operations. On behalf of all of the employees of TerrAscend, we pledge to continue our hard work and efforts in our goal of exceeding patient, customer and stakeholder expectations.
Matthew Johnson, President of TerrAscend Corp., and TerrAscend USA, Inc.
On April 24, the Company will release its 2018 annual audited financial statements and will host an Investor Day on April 25.
TerrAscend is a biopharmaceutical and wellness company that is committed to quality products, brands, and services for the global cannabinoid market. The Company participates in the medical and legal adult-use market in Canada and in US states where cannabis has been legalized for therapeutic or adult-use. TerrAscend operates a number of synergistic businesses, including Arise Bioscience Inc., a manufacturer and distributor of hemp-derived products, Ascendant Laboratories Inc., a biotechnology and licensing Company committed to the continuous improvement of cannabinoid expressing plants, and Solace RX Inc., a proposed drug preparation premises focused on the development of novel formulations and dosage forms.
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 cultivate, distribute or possess cannabis in the United States. Furthermore, 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 US federal law, nor will it provide a defense to any federal proceeding which may be brought against TerrAscend. Following any investment made by TerrAscend in operations in the United States, enforcement of federal laws in the United States will be a significant risk to the business of TerrAscend and any proceedings brought against TerrAscend thereunder may adversely affect TerrAscend’s operations and financial performance.
1 Presented on a pro forma basis including transactions that have not closed.