Cannabis company TerrAscend Q3 revenue misses estimates

Overview

• TerrAscend Q3 revenue of $65.1 mln missed analyst expectations

• Company reports Q3 net loss from continuing operations of $9.9 mln

• Completed $79 mln refinancing and had said it plans to exit Michigan market by year-end

Outlook

• Company evaluating strategic M&A opportunities with a disciplined approach

• TerrAscend aims to benefit from potential regulatory changes

Result Drivers

• NORTHEAST MARKETS - Revenue stability supported by consistent performance in New Jersey, Maryland, and Pennsylvania

• REFINANCING - Completed $79 mln non-dilutive refinancing of existing debt for strategic M&A

• MARYLAND GROWTH - Maryland revenue increased 14.8% year-over-year with high gross margins

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the drug retailers peer group is "buy"

• Wall Street's median 12-month price target for Terrascend Corp is C$2.00, about 51.5% above its November 5 closing price of C$0.97

Press Release: ID:nGNX8g5F0K

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