Part of the Canopy - Rivers group . . . Financial Highlights
- For the three months ended December 31, 2018, revenue totaled $5.0 million, up from $1.8 million in the third quarter of 2018 and $0.0 million in the fourth quarter of 2017.
- Net loss was $11.7 million or $0.13 per share for the three months ended December 31, 2018, compared with a net loss of $778 thousand or $0.02 per share for the fourth quarter of 2017.
- As of December 31, 2018, the Company held $21.7 million in cash and cash equivalents.
"We are pleased with our performance in the fourth quarter and have laid the groundwork for success in 2019," said Michael Nashat, CEO of TerrAscend.
"We are experiencing strong sales momentum in Canada and are making substantial progress towards becoming a leading US multi-state operator. We look forward to sharing more information on our international expansion plans, US growth in both cannabis and hemp-derived CBD businesses, and additions to our senior leadership team."
Matthew Johnson, President of TerrAscend Corp., and TerrAscend USA, Inc., noted, "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 licensed operations. On behalf of the employees of TerrAscend, we pledge to continue our efforts to exceed patient, customer, and stakeholder expectations."
Fourth Quarter 2018 and Recent Company Highlights
- Completed a capital reorganization to facilitate US expansion with the continued support of Canopy Growth Corp. (TSX: WEED) (NYSE: CGC), Canopy Rivers Corp. (TSXV: RIV) and certain funds managed by JW Asset Management LLC, where Jason Wild is the President and Chief Investment Officer.
- Awarded the right to a vertically integrated license in New Jersey, along with strategic minority partners. The operations will be in Northern New Jersey and include approximately 80,000 sq. ft. of cultivation and 40,000 sq. ft. of processing on the 16-acre campus. In addition, the company will be opening its first East Coast Apothecarium location in Philipsburg, NJ in Q4 2019.
- Completed the purchase of substantially all of the assets of Grander Distribution, subsequently renamed Arise Bioscience, an industry leader in the development, manufacture, and distribution of hemp-derived products. The US$13 million purchase price was an equal combination of cash and stock with the potential for additional consideration of up to US$10 million based on revenue targets of US$35 million in 2019 and US$50 million in 2020.
- Continued to drive sales for its adult-use brand, Haven St. Premium Cannabis, a top-10 selling brand in the five Canadian provincial jurisdictions where it is sold.
- Secured a multi-year cannabis supply agreement with PharmHouse, a Canopy Rivers Joint Venture. PharmHouse will grow and supply cannabis to TerrAscend Canada from an existing 1.3 million square foot greenhouse where the production of flower, trim, and clones from 20% of the dedicated flowering space will be made available to the Company.
- Secured US$75 million credit facility with certain funds managed by JW Asset Management LLC, where Jason Wild is the President and Chief Investment Officer. The credit facility gives TerrAscend access to non-dilutive capital for acquisitions in the United States, as well as for general corporate and working capital purposes.
- Appointed Matthew J. Johnson as President, TerrAscend Corp. and TerrAscend USA, Inc. Mr. Johnson is responsible for the overall operations of the business. A seasoned healthcare industry executive with over 25 years of experience, he has held senior-level positions with several large medical device and pharmaceutical companies including Baxter, Abbott, and AbbVie.
- Announced the appointment of Craig Collard to the board of Directors. Mr. Collard has over 20 years of experience in the pharmaceutical industry with a track record of leadership, managing organizational change, and driving successful merger and acquisition activity. Mr. Collard is the CEO of Veloxis Pharmaceuticals (NASDAQ OMX: VELO), a commercial-stage specialty pharmaceutical company committed to improving the lives of transplant patients.
- On February 11, 2019, the Company announced a series of transactions to facilitate the acquisition of The Apothecarium, a multi-state award winning retail dispensary network. As part of the transactions the Company is acquiring a vertically integrated operation in Nevada with cultivation, processing, and an Apothecarium dispensary, as well as Valhalla Confections, a provider of leading premium edible products. The Apothecarium's four retail dispensaries in California and Nevada provide quality cannabis to both medical patients and adult-use customers with combined 2018 revenues in excess of US$45 million2. The agreements are subject to regulatory approvals by various local and state authorities in each of the markets where the assets and licenses are held, as well as certain customary closing conditions.
- Completed construction of the Drug Preparation Premises (DPP) in its Mississauga facility. The Company is pursuing provincial and federal licensing for the development and compounding of unique pharmaceutical formulations, including a manufacturer's designation for cannabis products under the Cannabis Act and the Food and Drug Act.
- German authorities recently completed the GMP certification inspection of the Mississauga facility. The Company is preparing to export to Germany and other international markets once GMP certification is obtained.
- Will complete construction on the Mississauga facility in Q2 2019, expanding cultivation by 140% and processing capacity by 800%. The facility will include manufacturing and processing for additional product formats.
- In April 2019, TerrAscend's private placement was met with strong investor interest. In response, the Company increased the offering size to approximately US$30 million - US$40 million. For more information on the private placement, please refer to the Company's news releases dated April 23 and April 22.
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