The company recently secured a $140 million senior loan maturing in 2028, carrying a 12.75% interest rate, with no prepayment penalties.
Positive Cash Flow Amid Market Challenges
TerrAscend Corp. TSNDF reported its third-quarter revenue of $74.2 million Wednesday afternoon marking a 4.3% sequential decline, mainly attributed to reduced wholesale sales in New Jersey and retail sales in Michigan. Gross profit totaled $36.2 million, resulting in a gross margin of 48.8%, a slight increase from the previous quarter, driven by operational improvements in Maryland.
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Navigating Losses And Operational Costs
Net loss from continuing operations rose to $21.4 million, a jump from $6.2 million in the previous quarter, impacted by various one-time non-cash adjustments and increased administrative costs. Adjusted EBITDA was $13.7 million, down from $15.6 million, with the adjusted EBITDA margin slipping to 18.5%. Despite these challenges, TerrAscend achieved its ninth consecutive quarter of positive cash flow, generating $1.8 million from operations.
Strategic Financial Moves Support Expansion
The company recently secured a $140 million senior loan maturing in 2028, carrying a 12.75% interest rate, with no warrants or prepayment penalties. Executive chair Jason Wild emphasized TerrAscend's "ability to execute on growth strategy," including expansion into Ohio through a newly signed acquisition agreement. With $27.2 million in cash on hand, TerrAscend continues to pursue growth and strengthen its U.S. retail presence, particularly in Ohio and Maryland.
Price Action: TerrAscend shares saw a significant drop, falling 21.00% to close at $0.79,
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