TER: Cost of Current NA EnvironmentTER burning through the green establishing their storefront operations...with the major collapse of NA economiy unleashed over the last year has cost far too much already but much more to come if left unchecked. The sane have to take back the control of the asylum soon, this Venezuela style of elections is going to end badly all round. JMHO...Opt
09:44 AM EDT, 08/19/2021 (MT Newswires) -- TerrAscend Corp. (TER.CSE), a North American cannabis operator, on Thursday announced, in US$, Q2 2021 net sales increased 72% to $58.7 million as compared with $34.2 million in the second quarter of 2020. This year over year growth was driven by acquisitions, cultivation capacity expansions in Pennsylvania, New Jersey, and California as well as an increase in the number of dispensaries.
Net loss attributable to shareholders was $25.9 million, or $(0.14) per diluted share, compared with a loss of $9.3 million, or $(0.06) per diluted share, for the year ago quarter.
Cash and cash equivalents were $154 million as of June 30, 2021, compared to $234 million as of March 31, 2021, which is sufficient to fund planned growth initiatives.
TerraAscend has also withdrawn its 2021 guidance. primarily due to a temporary reduction in yields of quality flower caused by ongoing construction and expansion in Pennsylvania.
Secondly, the decision to increase allocation of the company's branded products to its own Apothecarium dispensaries in New Jersey. While more profitable in the long run, retail sales take longer to sell through when compared to wholesale sales. The company believes prioritizing the retail channel in a supply constrained market is the best path for building shareholder value.
For the second half of 2021, although the company has withdrawn its guidance, management expects to continue to deliver strong year-over-year growth in revenue and adjusted EBITDA.
Commenting on the company's financial results and outlook for 2021, Jason Wild, executive chairman said, "During the second quarter, we continued to deliver year-over-year and sequential revenue growth while maintaining industry-leading adjusted EBITDA margins above 40%. Due to expansion related yield reduction in Pennsylvania, which I believe to be temporary, and a decision to prioritize allocation of our branded products to our own New Jersey dispensaries, I felt it was appropriate to withdraw guidance for 2021. Looking ahead, 2022 will be a breakout year as we benefit from investment in cultivation capacity expansions and best-in-class retail experiences. I expect Pennsylvania to show substantial growth benefitting from the current expansion, while in New Jersey we will have our Maplewood, Phillipsburg, and Lodi stores opened along with our 140,000 square foot cultivation and processing facility, which is fully operational and prepared to supply an adult use New Jersey market."