Terrascent Corp - TRSSF stock
OTC Symbol: TRSSF | Related ticker symbols: CSX:TER
Company Description[edit]
TerrAscend Corp. is a North American-based vertically integrated cannabis operator. The company has multi-state integrated operations across California, Michigan, New Jersey, and Pennsylvania licensed cultivation and processing activities in Maryland, and licensed production in Canada. TerrAscend produces and sells generational cannabis products to both adult-use and medical markets in Canada and the United States. It produces and disburses derived wellness products to retail locations and manufactures cannabis-infused edibles. The firm advances its products under the Haven St, Funky Farms, Ilera, Kind Tree, Legend, Original Hemp, State Flower, Valhalla, and Gage brands. The company owns and oversees operations in a chain of retail dispensaries in California, New Jersey, and Pennsylvania under the Apothecarium brand name. TerrAscend was incorporated on March 7, 2017, under the Ontario Business Corporations Act. It is headquartered in Mississauga, Ontario, Canada.[1] The company is listed on the CSE under the TER ticker symbol and on OTCQX under the TRSSF ticker symbol. It began trading on OTCQX on October 22, 2018.[2]
Corporate Business Overview[edit]
TerrAscend’s cultivation and manufacturing operations provide Canadian and United States legal adult-use and medical cannabis consumers with a wide range of consistent, high-quality cannabis products. It owns a portfolio of synergic businesses that ensure efficiency and success in its operations. These include Ilera Healthcare Ilera Healthcare, TerrAscend NJ LLC, Valhalla Confections, Arise Bioscience, TerrAscend Canada Inc., HMS Health, LLC, and HMS Processing, LLC. [2] Ilera Healthcare oversees vertically integrated cannabis operations: cultivation, processing, and dispensing in Pennsylvania. Its growing/processing footprint spans approximately 150,000 sq. ft. with a product line including concentrates, dried flowers, tinctures, topicals, and vaporizable. It also operates three Apothecarium-branded retail dispensaries and three additional dispensaries nationwide. Gage is a fully-owned cultivator, processor, and retailer that serves the Michigan markets.
TerrAscend New Jersey, a majority-owned subsidiary by TerrAscend, has the New Jersey Department of Health’s permit for integrated cannabis operations. TerrAscend has completed the construction of a 140,000 sq. ft. cultivation and manufacturing facility for the subsidiary, with an option to extend the footprint to 240,000 sq. ft. The Apothecarium is a collection of North California-based licensed full-service dispensaries known for advancing critical education and consumer service to all categories of customers, from first-time o senior dispensary visitors. Valhalla manufactures premier select cannabis-infused gluten-free artisan edibles. TerrAscend has 100% ownership of HMS, a Maryland-based cultivator, and processor of medical cannabis with a 22 000 sq. ft. facility. Arise is a Delaware-based wholly-owned subsidiary that engages in the production and nationwide retail distribution of innovative hemp-derived wellness commodities. TerrAscend Canada is licensed to cultivate, process and distribute cannabis for medical and non-medical purposes in Canada. It operates to form a 67,300 sq. ft. facility in Mississauga.[3]
Critical Corporate and Industry Updates[edit]
On February 27, 2023, the company announced that it had closed an agreement with The Hoffman Centers, P.C., a New Jersey-based law firm, to advance free cannabis-related obliterate services, which Apothecarium would sponsor. Via its THCSponge Expungement Program, Hoffman aims to rectify historical and current hazards of cannabis prohibition through restorative justice solutions. The program is determined to help individuals serving time or historical criminal records due to cannabis-related convictions in the state where the use of cannabis has been legalized.[4]
TerrAscend entered a multi-year partnership with Wana Brands, an established edibles manufacturer in North America, on January 19, 2023. The partnership agreement would see TerrAscend introduce Wana’s products into its Apothecarium retail portfolio and other third-party retail outlets in New Jersey. The deal would also pass the manufacturing and sale of Wana’s existing portfolio of products in Maryland to TerrAscend. According to the deal, TerrAscend will be the sole exclusive manufacturer, distributor, and commercial partner for the latter in New Jersey. Jason Wild, Executive Chairman of TerrAscend, expressed his delight in terming the partnership substantial since edibles are the industry’s fastest-growing consumer categories and the most popular entry point for new cannabis consumers.[5]
To expand its footprint, TerrAscend acquired KISA Holdings, LLC and KISA Enterprises MI, LLC (collectively, "Pinnacle"), a dispensary operator in Michigan, on August 23, 2022. Pinnacle brought six operational dispensary licenses in Addison, Camden, Buchanan, Morenci, and Edmore. The dispensaries were set for rebranding under the Gage or Cookies brands. The company recorded a net increase in revenue from $49.139 million to $67.025 million in the third quarter ending September 30, 2022, compared to the same period in 2021. The massive increase was attributed to increased retail sales, mainly adult-use, in New Jersey and the acquisition of Gage.[6]
Leadership[edit]
Executive Leadership[edit]
- Jason Wild, Executive Chairman
- Led a private placement into the company in 2017
- Has a deep knowledge base and robust connections in the cannabis industry
- He uses his extensive network and strategic values to improve the company's strategy and source valuable mergers and acquisitions
- He is also the President and Chief Investment Officer of JW Asset Management, an investment advisor that manages over $500 million in assets
- Mr. Wild is a pharmacist who reaped his early success by investing in undervalued pharmaceutical companies netting gains in their long-term price appreciation
- Ziad Ghanem, President and CEO
- Has approximately 20 years of experience in large-scale service institutions, pharmacies, cannabis, and retail operations
- He was recently the president of all markets at Parallel, a large privately held integrated multiple-state cannabis operator in the U.S.
- Gained over 15 years of senior management experience at Walgreens Boots Alliance before entering the cannabis industry
- He is a Doctor of Pharmacy from the University of Houston
- Keith Stauffer, CFO
- Over 25 years of executive business experience serving in several senior finance roles across different industries
- He was previously the Chief Financial Officer and Senior Vice President of Finance of the Global Consumer Beauty Division at Coty, Inc.
- She spent ten years at The Hershey Company serving in senior positions, including VP of Global Internal Audit, VP of Finance, Division CFO for Hershey’s Asia, and Senior Director of Corporate FP&A.
Other executive team members are David Wheeler, SVP and Chief Information Officer; Lynn Gefen, Chief Legal Officer; and Jeroen De Beijer, Chief of People and Culture Officer.[7]
Legal Issues[edit]
The company is often faced with a magnitude of lawsuits during its business operations, including litigation concerning intellectual property, employment, product liability, and commercial matters. The company management, however, believes that such claims hardly have any material effects on the firm's financial performance or operation results. TerrAscend had zero significant pending legal suits as of September 30, 2022.[8]
References
- ↑ TerrAscend Company Profile – Seeking Alpha. Accessed on March 5, 2023
- ↑ TerrAscend Corp. Form 10-Q/Nature of Operations, Page 7 – TerrAscend website. Retrieved on March 5, 2023.
- ↑ TERRASCEND CORP. MANAGEMENT DISCUSSION & ANALYSIS September 30, 2021/Business Overview, Pages 3, 4, 5 & 6 – webfiles.thecse.com.
- ↑ TerrAscend and The Hoffman Centers Partner to Offer Free Expungement Services in New Jersey – Yahoo Finance. March 6, 2023.
- ↑ Wana Brands Partners with TerrAscend to Bring its Best-In-Class Edibles to New Jersey and expand its Existing Line-Up in Maryland – Yahoo Finance. March 6, 2023.
- ↑ TerrAscend Corp. Form 10-Q/Recent Developments and Revenue from Operations, Pages 28 & 29 – TerrAscend website. Retrieved on March 6, 2023.
- ↑ TerrAscend Management/Executive Leadership – TerrAscend website. Accessed on March 6, 2023.
- ↑ TerrAscend Corp. Form 10-Q/ Commitments and contingencies, Page 26 – TerrAscend website. Retrieved on March 5, 2023.