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TerrAscend Q1 Net Sales Near CA$35M, Achieves Positive Adjusted EBITDA

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TerrAscend Q1 Net Sales Near CA$35M, Achieves Positive Adjusted EBITDA

Canadian cannabis company TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) reported its net sales were CA$34.8 million (US$25.2 million) for the first quarter of 2020. That’s a 34% quarter-over-quarter and 139% year-over-year increase.

According to the latest financial update, the Toronto-based company reached a positive adjusted EBITDA of CA$4.9 million versus a loss of CA$5.5 million in the corresponding quarter last year.

TerrAscend CEO Jason Ackerman said achieving adjusted EBITDA profitability is a big moment for the company.

“These results were driven by the strong performance of our U.S. operations, which continue to perform ahead of plan,” Ackerman stated.

Other first-quarter financial and operational highlights include:

  • Gross margin went up by 45%, compared to 10% in the first quarter of 2019
  • A year-over-year increase of 265% in cash and equivalents reaching CA$31.4 million
  • Securing CA$12.7 million from a private placement announced in January
  • Completion of loan financing arrangement worth CA$80.5 million with Canopy Growth Corp. (NYSE: CGC) (TSX: WEED)
  • Finalization of Ilera Healthcare’s phase of expansion

Ackerman was appointed interim CEO in January and, three months later, named permanent CEO.

Shortly after, the company welcomed Keith Stauffer to its team as the new CFO. 

Last week, the company secured some $30 million in financing through a non-brokered private placement, including a $20 million lead order from JW Asset Management LLC.

In the second quarter of 2020, the company its net sales will reach $45 million, displaying a sequential growth of 30%.

 

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