While a relatively small cannabis stock with a market cap of only $200 million or so, TerrAscend (CSE: TER)(OTCQX: TRSSF) has been making waves in the financial community as a pot stock worth following. This idea seems to have been justified in light of today’s developments as the company reported record revenues for the quarter and boosted full-year guidance.
In its most recent quarter ending on June 30th, TerrAscend reported revenue of $17.6 million, a 21 percent increase from the previous quarter revenues of $14.6 million. While impressive in and of itself, this figure looks even better in comparison to the second quarter of 2018, where TerrAscend reported only $0.01 million, or just $10,000, worth of sales.
Investors are already excited for what the future has in store for the company as it quickly solidifies its reputation as one of the major up-and-coming small-to-mid-cap pot stocks out there.
“The Company continues to experience strong growth in demand. We are pleased to be in the position to raise our revenue guidance only four months after initially providing it. We are seeing a substantial acceleration in sales growth in the third quarter and expect this to continue through the fourth quarter,” said Michael Nashat, TerrAscend’s CEO in a press release. “We continue to focus on improving margins, which will be fueled by cost effective strategic supply agreements that provide access to bulk dry flower and extract-based cannabinoids while maintaining TerrAscend’s standards for quality and consistency.”
TerrAscend raised its guidance for the year as well, with revenues expected to exceed $141 million in 2019, above the $135 previously announced by the company in April 2015. Currently, the company has around $17 million in cash and cash equivalents, while a private placement closed in May would add another $69 million to their balance sheet.
TerrAscend also is expanding their facilities in Canada, saying that once their Mississauga facility is up to full production, they will be able to fill over 400,000 vape pen cartridges per month.
Shares of TerrAscend moved up by 4.1 percent in response to the news, a modest increase for a relatively strong piece of news. While it might be surprising to some, many times cannabis stocks have plunged instead on good revenue figures.
The reason this has been happening with more frequency is that investors are getting fed up with revenue growth and have begun expecting some form of profitability, something that few cannabis stocks have been able to report. However, TerrAscend is still young enough as a cannabis stock that investors are still willing to accept great growth if nothing else.
Prices for TerrAscend’s stock has fallen by around 25 percent over the past few months, more or less following the sector, which has seen double-digit declines for the past three months for the most part.
TerrAscend Company Profile
TerrAscend Corp is a Canadian company focused on creating and delivering quality cannabis products and services that meet the evolving needs of patients. The company offers its cannabis products for patients suffering from chronic pain and debilitating illnesses. It also provides education and support programs to physicians and patients through healthcare professionals. – Warrior Trading News
