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TerrAscend Corp. (OTCQX: TRSSF), a leading North American cannabis operator with vertically integrated operations in Pennsylvania, New Jersey, California (and now Michigan with the closing of the purchase of Gage Growth) reported financial results for its Q4 ending December 31, 2021, this past Wednesday, as follows:

Q4 Financial Highlights

(Unless otherwise stated, the results are in American dollars - to convert to other currencies go here - and compared to the previous quarter.)

• Net Sales: +0.2% to $49.2M
• Adj. Gross Profit: +7.9% to $24.5M
  • As a % of Net Sales: declined to 59.1% from 65.4%
• Gross Margin: increased to 49.8% from 46.2% 
• Gen./Admin. Exp.: +5.6% to $17.0M 
  • As a % of Net Sales: increased to 34.8% from 32.8%
• Adjusted EBITDA: +32.2% to $11.9M
  • As a % of Net Sales: increased to 24.2% from 18.3% 
• Net Income: +50.7% to $22.9M
• Adj. Net Income (Loss): decreased to $(5.9)M from $55.8M
• Cash Balance: -22.4% to $79.6M

Q4 Operational Highlights

• Closed on the purchase of a 156,000 square foot facility in Hagerstown, MD for expansion of cultivation and processing, which is expected to be operational during the third quarter of 2022.
• Completed US GAAP conversion and became a US filer under SEC.

Management Commentary

Jason Wild, Executive Chairman commented:

• "The strategic decisions we made in Pennsylvania have resulted in the highest quality product we have ever sold in this market.
• The actions undertaken in New Jersey have our team prepared for adult use, where we have one of the largest cultivation footprints in the state, along with three ideal dispensary locations.
• We have recently completed our acquisition of Gage, which provides us with a leadership position in yet another multi-billion market and the ability to launch this brand beyond Michigan.
• I'm proud of the hard work by the team in 2021, which has us well positioned for the explosive growth we expect in 2022 and beyond."

Stock Performance

The TerrAscend stock price is UP 9.7% since its close last Wednesday during which it dropped to its 52-week low in intra-day trading but remains DOWN -4.6% since the end of February, DOWN -10.9% YTD and DOWN -65.4% from its high in 2021.