TerrAscend (OTCQX:TSNDF) has garnered attention in the investment community, with its performance and potential being subject to various analyses. Despite recent fluctuations in its stock price, TerrAscend remains a focal point due to its unique position in the cannabis industry. The stock is currently trading at $1.61 and is up only 5% since May 12, 2023.
By the end of the year it reached $1.63, with just 1% growth.
History and Transition
Originally listed on the Canadian Securities Exchange in 2017 as a Canadian LP, TerrAscend has undergone significant evolution. Transitioning to the Toronto Stock Exchange and exiting Canada in 2023, the company has become exclusively focused on the MSO market. This strategic shift has been perceived as both distinctive and impactful within the industry.
Strategic Partnerships
One pivotal moment in TerrAscend’s journey was its early investment by Canopy Growth (CGC) in 2017. This partnership has evolved over time, with Canopy Growth now holding a substantial stake in TerrAscend. Additionally, TerrAscend’s strategic acquisitions, such as the Apothecarium in California and Gage Growth in Michigan, have bolstered its presence in key U.S. markets.
Expansion and Operations
TerrAscend’s expansion into various states, with a number of outlets in Pennsylvania, Maryland, and New Jersey, has broadened its footprint in the U.S. cannabis market. With operations spanning multiple states and a diversified portfolio of products, TerrAscend is poised for further growth. As, the company operates 33 dispensaries across 6 states.
Management
A notable change in TerrAscend’s leadership occurred with the appointment of Ziad Ghanem as CEO in 2023. Ghanem’s extensive experience in the healthcare industry, including his tenure at Walgreen’s Boots Alliance, brings valuable expertise to the company’s executive team.
Financial Performance
Despite challenges in 2022, TerrAscend demonstrated robust financial performance in 2023. According to analysts, the company reported a total revenue growth of 29%, reaching $320 million in total revenue for the fiscal year. Adjusted EBITDA also showed significant improvement, reaching $72 million for the same period.
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Valuation and Outlook
Analysts project continued growth for TerrAscend in the coming years. According to Sentieo, the company is expected to achieve an 18% revenue growth and a 29% growth in adjusted EBITDA for 2024. While concerns persist regarding debt levels and tangible equity, TerrAscend’s valuation appears reasonable compared to peers.
Promising Future and Growth
TerrAscend’s performance relative to MSO peers has been mixed, with recent underperformance offsetting earlier successes. However, its strategic positioning in key markets and potential for growth make it an intriguing investment opportunity.
Investors should carefully consider the risks and rewards associated with owning TerrAscend, particularly amidst uncertainties surrounding regulatory changes and market dynamics.
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Joel Gbolade is a seasoned financial writer with over seven years of experience in freelance content creation. Specializing in the financial niche and stock market, he has crafted engaging content for numerous websites. His background in technology extends to data processing and computer proficiency, enriching his comprehensive skill set in the financial realm.
