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TerrAscend Corp. (CSE:TER) (OTCQX:TRSSF) reported its financial results for the first quarter that ended March 31, 2023.
"Despite a challenging environment, revenue in the first quarter increased 42.8% year-over-year, gross margins significantly improved by 420 basis points sequentially to 48.8% and, importantly, we generated positive free cash flow of $5.9 million," Jason Wild, executive chairman of TerrAscend stated.
"The following financial measures are reported as results from continuing operations due to the shutdown of the licensed producer business in Canada, which is reported as discontinued operations for all of 2022," per an official announcement.
First Quarter 2023 Financial Results: Net revenue grew 0.6% sequentially and 42.8% year over year, driven by strong performance in New Jersey and the Allegany dispensary acquisition. Moreover, the gross margin improved to 48.8%, driven by increased yields and better capacity utilization. G&A expenses decreased, resulting in a net loss of $19.2 million. Adjusted EBITDA was $12.2 million, representing a 17.6% margin.
"This was our sixth consecutive quarter of sequential revenue growth and our third consecutive quarter with positive and increasing cash flow from operations," said Wild.
Cash and cash equivalents increased to $32.9 million. Total shares outstanding were 351 million, including common, preferred, and non-voting shares, with warrants and options at $4.33.
First Quarter 2023 Business and Operational Highlights
Subsequent Events: Expanded internal reorganization plans for TSX uplisting. Expanded partnership with Cookies for genetics cultivation and manufacturing in Maryland. Increased ownership in Cookies Retail Canada Corp to 95%.
"2023 will show substantial revenue growth. We operate in a number of attractive states that are converting to adult use, with Maryland starting on July 1st. While we would like to see the industry on stronger footing overall, we do believe that the distressed environment will present opportunities for us to acquire assets that could drive significant additional profitability for the Company," concluded Wild.
Price action: On Thursday evening, TRSSF shares closed at $1.67 per share trading 6.70% lower.
Photo: Courtesy Of Pepi Stojanovski On Unsplash