U.S. and Canadian cannabis operator TerrAscend Corp. has posted a net loss of more than 13.6 million Canadian dollars ($10.3 million) for the quarter ended June 30.
TerrAscend’s net sales for the quarter were CA$47.2 million, an increase of 36% from the previous quarter and 169% from the same quarter last year.
The majority of those sales, roughly CA$42.2 million, came from TerrAscend’s U.S. operations.
The company attributed its U.S. sales growth primarily to acquisitions, including Ilera Healthcare in Pennsylvania and The Apothecarium in California.
“Lower sales in Canada during the second quarter of 2020 were driven by a shift in focus towards more profitable and sustainable sales,” wrote TerrAscend management in a regulatory filing.
TerrAscend’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were CA$11.4 million in the quarter.
In a press release, TerrAscend said it anticipates net sales and adjusted EBITDA of at least CA$192 million and CA$45 million, respectively, for the full 2020 fiscal year.
“The outlook is driven by the company’s continued emphasis on further expansion of its most profitable business in Pennsylvania and ramp up and further expansion of its retail footprint in Pennsylvania, New Jersey, and California while maintaining a tight overall focus on costs,” said the press release.
TerrAscend reported cash and cash equivalents of about CA$74.8 million as of June 30.
The New York- and Toronto-based company trades on the Canadian Securities Exchange as TER.