TerrAscend Sees 169% YoY Spike In Net Sales

Cannabis company TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) reported a net sales increase of 169% over the year, and 36% sequentially, to CA$47.2 million in the second quarter of fiscal 2020.

“We are producing strong revenue growth while maintaining our focus on delivering industry-leading margins and profitability,” stated CEO and executive chairman Jason Ackerman.

Some of the highlights from the second-quarter earnings report include:

• Gross margin went up to 56%, versus 9% (before gain on fair value of biological assets) in the same period last year
• Total adjusted EBITDA was CA$11.4 million, compared to an adjusted EBITDA of CA$4.9 million in the previous quarter, and a loss of CA$8.6 million in the second quarter of 2019
• That’s a sequential increase of 131%
• Second-quarter adjusted EBITDA accounted for 24% of net sales
• Cash and equivalents (including restricted cash) amounted to CA$75 million versus CA$17 million in the corresponding quarter of 2019
• Positive cash flow from operations was CA$10.4 million for the quarter

The New York-headquartered company expects its net sales for the full year would amount to “at least” CA$192 million, while it anticipates adjusted EBITDA of CA$45 million. 

Other quarterly highlights include the appointment of Jason Ackerman as permanent CEO, naming Keith Stauffer as CFO, and finalizing of US$37 million worth oversubscribed non-brokered private placement, to name a few.

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