TerrAscend Announces Strong Revenue Growth in Third Quarter Financial Report

Third quarter revenue shows an increase of 53% from $17.6 million in the second quarter

TerrAscend Corp, the first and only global cannabis company licensed for sales in Canada, the U.S., and the EU, today reported financial results for the third quarter ending September 30, 2019.

All figures are reported in Canadian dollars, unless otherwise indicated.

My top priority now is to operationalize the company's strategy while driving continued growth, improving profitability and fortifying our financial strength.Jason Ackerman, TerrAscend's Executive Chairman. 

Third Quarter 2019 Financial Highlights

Third quarter 2019 revenue increased 53% quarter-over-quarter to $26.8 million from $17.6 million in the second quarter of 2019 and compared with $1.8 million in the third quarter of 2018.

Revenue growth was driven by higher overall sales in Canada as well as strong sales in the U.S, while Pro forma revenue1 for the third quarter of 2019 was approximately $44 million.

Gross profit for the third quarter of 2019 was $7.0 million, compared with $2.2 million in the second quarter of 2019 and ($0.6) million in the third quarter of 2018.

The CEO of TerrAscend, Michael Nashat, explained that the company is, "on track to deliver a year of tremendous progress for the overall company both operationally and financially."

"This has been especially evident in recent months, where we expanded our portfolio of U.S. assets with the addition of Ilera Healthcare in Pennsylvania, booked our first international shipment of medical cannabis to Europe, and received Health Canada approvals which tripled the licensed space at our Mississauga facility enabling future sales of new product formats and extracts for the Canadian Cannabis 2.0 market."

"Meanwhile, we have grown total sales in the third quarter to nearly $27 million from less than $2 million a year ago with improving margins," Nashat said.

Adjusted EBITDA1 for the third quarter of 2019 was ($6.5) million, compared with ($8.7) million in the second quarter of 2019 and ($6.3) million in the third quarter of 2018.

As of September 30, 2019, the company held $6.9 million in cash and cash equivalents. Subsequent to quarter end, the company closed on two tranches of the previously announced non-brokered private placement for total proceeds of approximately $18.0 million.

To access the full financial report click here.

Disclaimer: Past performance is not an indicator of future performance.

Disclaimer: past performance is not an indicator of future performance
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Niki Mohazeb
Niki Mohazeb

Niki is a Sydney based writer, with a passion for promoting the health benefits of medicinal cannabis. Niki also enjoys researching and writing about the future of cannabis along with the many other benefits that the plant provides, such as the diverse utilities of hemp.

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