TerrAscend Earnings + Call Notes

U.S. cannabis leader readies to expand.

Terrascend Earnings

$74.2M Revs; est. $76.9M
$13.7M AEBITDA; est. $15.2M
$36.2M GP; est. $37.6M
$2.5M OI; est. $3.6M
48.8% GM; est. 48.9%

Net Revenue of $74.2 million and Gross Profit Margin of 48.8%.

9th consecutive quarter of positive Cash Flow from continuing operations and fifth consecutive quarter of positive Free Cash Flow.

Closed on a senior secured term loan for gross proceeds of $140 million carrying an interest rate of 12.75%, maturing in August 2028, and containing no warrants or prepayment penalties.

Announced today the signing of definitive agreement to enter Ohio market through the acquisition of a well situated, profitable dispensary.

“Our core business was solid during the third quarter as we maintained leading positions in our key markets, including the #1 market share position in New Jersey. Importantly, the third quarter marked our ninth consecutive quarter of positive cash flow from continuing operations and the fifth consecutive quarter of positive free cash flow. Our consistent positive cash flow generation supports our ability to execute our growth strategy, which includes aggressive pursuit of M&A. To that end, I am pleased that today we announced the signing of a definitive agreement, which enables us to enter Ohio through the acquisition of a well situated and profitable dispensary. Our intention is to assemble a leading retail footprint in Ohio by acquiring high-quality stores, just as we did in Maryland. From a regulatory perspective, we look forward to the upcoming DEA hearing concerning the proposed rescheduling of cannabis, and upcoming oral arguments in the David Boies lawsuit against U.S. Attorney General Garland seeking equal treatment for legal, state regulated cannabis businesses.”

Jason Wild, Executive Chairman

Call Notes