Executive Chairman Jason Wild spoke with New Cannabis Ventures about the company’s footprint, the pending Gage Growth acquisition and preparing for 2022.
It ultimately had to take down and reset a number of rooms. The facility is now in good shape and producing the best flower it ever has, according to Wild.
The 22,000-square-foot operations are smaller than those the company runs in New Jersey and Pennsylvania, but the team thought the deal had an attractive valuation based on revenue run rate and profitability, according to Wild.
This month, the company closed on a 156,000-square-foot warehouse in Maryland and plans to move its operations to that facility in 2022.
TerrAscend has formed a partnership with the brand Cookies, and it will exclusively bring the brand’s products to the New Jersey market.
With no Cookies products currently available in New York or Pennsylvania, TerrAscend is ideally positioned to attract consumers who want that brand.
The COVID-19 pandemic had a negative impact on its three Apothecarium dispensaries in San Francisco, where a large percentage of cannabis customers are commuters or tourists.
While the pandemic negatively impacted the company’s California dispensaries, TerrAscend’s super-premium flower brand State Flower has been performing well.
Though Canada is a tougher market with competition across the country and the provinces controlling the wholesale market, TerrAscend will have exclusive rights to open Cookies dispensaries across Canada once the Gage Growth deal closes.
Since there is no dispensary cap in the state, acquiring dispensaries will be less expensive than it would be in a limited license market, and Wild expects those relatively inexpensive acquisitions could drive substantial revenue and profitability.
Right now, prices are elevated in this market because there is a scarcity of dispensaries, according to Wild.
The two companies have a strong relationship, and the TerrAscend team is always looking for ways to further strengthen the partnership.
TerrAscend also has approximately $40 million in warrants that will expire toward the end of the year and another $50 million that will come in August.
The company has sufficient cash to execute its plans over the next couple of years, according to Wild.
The company has been building up inventory in preparation for the launch of adult-use and working to open its third store in the state.
The company is back on track in Pennsylvania, which will also help to drive growth.