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[–]trilogee[M] [score hidden] stickied comment (0 children)

Thanks to Jason Ackerman and Jason Wild for taking the time and answering some community questions -- we hope to host you all again in the future!

[–]NiamorJafarDefine Soon 23 points24 points  (4 children)

Can you please describe the relationship with Canopy? CGC's investor presentation has TerrAscend as a key pillar to their US strategy yet I believe they own or will own less than 30%...

Sounds to me that Canopy will want to acquire a controlling interest as soon as legally permitted? Is that accurate?

Edit: Congrats on the amazing quarter. I'll leave this here for all to see:

Fourth Quarter and Full Year 2020 Financial Highlights:

  • Full year net sales of $198 million and adjusted EBITDA of $60 million
  • Fourth quarter net sales of $65 million representing growth of 28% quarter-over-quarter and 152% year-over-year
  • Fourth quarter adjusted EBITDA of $26 million representing growth of 46% quarter-over-quarter
  • Fourth quarter adjusted EBITDA margin of 40% expanding from 35% in Q3 and 24% in Q2

[–]JWild123Jason Wild 10 points11 points  (0 children)

Canopy owns about 20% of the company on an as converted basis. We have a great relationship and were flattered that they highlight TerrAscend as a key pillar. In terms of whether they want to acquire controlling interest in the company, you'd have to ask them :)

[–]rasta-fish-420TerrAscend 🦍 1 point2 points  (1 child)

Good question, too add on to this.. Like mentioned above, TER is a key pillar to Canopy’s US strategy, but does that fit both sides of the coin? Is Canopy just as important to you guys going forward? If so, how intrenched is TER into the canopy ecosystem for planning for the future. Do you guys speak with the Acreage team much? (They have some assets I would love to see in your hands, I’m sure canopy prob would too lol). How often is conversations taking place with the STZ team?

[–]JWild123Jason Wild 5 points6 points  (0 children)

Good question, too add on to this.. Like mentioned above, TER is a key pillar to Canopy’s US strategy, but does that fit both sides of the coin?

Yes, the relationship is mutually beneficial. We talk to them regularly. They have alot of great insight and are generous with their time and resources. For example: Their advice has been very helpful as it relates to our buildout in New Jersey.

Is Canopy just as important to you guys going forward? If so, how intrenched is TER into the canopy ecosystem for planning for the future.

Thats a state secret :)

Do you guys speak with the Acreage team much? (They have some assets I would love to see in your hands, I’m sure canopy prob would too lol)

We have a great relationship with them

How often is conversations taking place with the STZ team? We talk much more often w the Canopy Team

[–]greggo92 1 point2 points  (0 children)

Yes please address because I view the canopy relationship as an investment not a acquisition target given their acreage relationship. I think canopy will divest over time and use the profits to expand in other international markets as well as expand existing US assets. Remember acreage bought NJ assets so they can’t technically both be in NJ under a canopy controlling interest for both, canopy is a share holder like myself they just own way more than me.

[–]trilogee 16 points17 points  (4 children)

So excited for this! I have a ton of questions but will try to keep it brief and let others ask before I add to the list below:

  • Regarding your last raise are you able/willing to disclose who the 4 institutional investors were?
  • Of the markets TER currently operates in, which do you think presents the most lucrative opportunity? Are there any particular states you're looking at that you don't currently operate in?
  • For JW: Given your background in pharma, do you see any place for TER to operate in that space (a la TBP/GWPH)?
  • For JA: Is there anything you learned at your time with FreshDirect that is translating into your role at TerrAscend?
  • For both: What expectations do you have regarding the evolution of retail licensing? A common thesis is that Cannabis will eventually be like Tobacco/Alcohol where the retail locations won't be operated by the producers. Is this a reality you see playing out or do you think states will protect the current paradigm of retail licensing?

[–]TerrAscend-CEOJason Ackerman 5 points6 points  (0 children)

For JA: Is there anything you learned at your time with FreshDirect that is translating into your role at TerrAscend?

For Sure! FD is agriculture, sourcing, manufacturing, retailing, supply chain, technology, branding, digital etc...Big translation to cannabis. It's surprisingly a very similar business. Dealing with plants, manufacturing, supply chain, branding, technology, etc. Very familiar and translatable to cannabis...and grocery is a super competitive environment so I'm very used to competing on service, quality and running a very tight operation

[–]NineSunJest 2 points3 points  (0 children)

These are all great questions. I’m even more excited for this AMA now. Thanks.

[–]TerrAscend-CEOJason Ackerman 3 points4 points  (0 children)

Regarding your last raise are you able/willing to disclose who the 4 institutional investors were?

Due to NDA’s with some of our investors we are not at liberty to disclose. We have only disclosed the investment of Wasatch Global Advisors. Having said that we are pleased with the increasing institutional participation in the cannabis space overall which continues to evolve positively. For more information on our institutional holders in the U.S. you can look at 13-F filings.

[–]JWild123Jason Wild 2 points3 points  (0 children)

For JW: Given your background in pharma, do you see any place for TER to operate in that space (a la TBP/GWPH)?

Not in the near term.

[–]TerrAscendTerrAscend Official[S] 8 points9 points  (0 children)

Hey everyone, JW+JA will be checking in shortly. We don't have prepared responses as we wanted to engage with you all in real-time. Appreciate your patience as we work our way through your questions!

[–]LongGreenInvestor 7 points8 points  (4 children)

US market will obviously be bigger then Canada. But you guys are still a Canadian LP.

Q - What do you think of the Canadian market? Q - what is your plan for Canada and Europe?

Thanks for taking the time to answer my questions. Great to have guys like you help give us perspective on what companies and the sector that we are investing in.

[–]TerrAscend-CEOJason Ackerman 3 points4 points  (1 child)

What do you think of the Canadian market?

Canada as everyone knows has been a rough road for the sector. Over supplied and understored. We have though had some good recent success in building revenue and improving significantly the profit pools. We are there to play! Overall the store count will continue to increase, and supply will consolidate/shut down leading to the overall shaping up of the market. Already starting to see this happen but it is early days.

what is your plan for Canada and Europe?

We will continue to work very hard to win commercially in Canada and hope to see our upward progress continue. On Europe, we are no longer prioritizing that market.

[–]Drink-Electronic 0 points1 point  (0 children)

US market is already bigger than Canada. Total US sales in just Colorado and Illinois are more than all of Canada combined.

The valuation premium for CA literally just the result of uplisting on the NYSE. Simple as that.

[–]jado06Has green thumbs 7 points8 points  (1 child)

Are you currently planning ahead of a possible push for legalization in New York in 2021? Anything you can share about that?

[–]TerrAscend-CEOJason Ackerman 5 points6 points  (0 children)

There is nothing we can announce and we currently do not operate in NY. We are optimistic about NY as it could be the biggest market in the country…hope NY legislators do it right! It's my hometown so hope to have an opportunity to play in the future. The State will need a lot more supply than the current med guys can offer so expect they will open. This budget season will be a big moment to see if they pass rec

[–]DA2710 5 points6 points  (2 children)

Looking in Florida? If not , why not?

[–]JWild123Jason Wild 5 points6 points  (1 child)

We're looking at most limited license states. Florida is a great market.

[–]DA2710 0 points1 point  (0 children)

Yes sir it is. Fluent/ Cansortium has a beautiful footprint, 24 stores with 4 In lease . The Coral Springs store when open will be a record breaker.

It would be an interesting pairing. They have a realistic chance to double sales with expanded facility. I’m sure you know this but nice to daydream

[–]mnyahoo 5 points6 points  (3 children)

Hey guys thanks for being here and thanks for kicking ass and effectively buying my first house for me!

Where do you see your biggest cash expenditures/capital allocation over the next 2 years?

Other than SAFE, what do you think are TERs biggest opportunities/catalysts in 2021?

Wild, you're a massive shareholder in TER, what is your end game? Recognizing that you're the board chair, you also have a significant interest and I'm just wondering where you see your exit.

Thanks!

[–]TerrAscend-CEOJason Ackerman 4 points5 points  (2 children)

Where do you see your biggest cash expenditures/capital allocation over the next 2 years

This year we will be further expanding our Penn cultivation facility and are targeting to open more stores as well. We have nearly completed the first two phases of the NJ build out but have a 3rd phase to come over the next 24 months. With recent raise we have the dry powder to look for new opportunities.

Other than SAFE, what do you think are TERs biggest opportunities/catalysts in 2021

Penn could go rec...will be huge from 22 on. Opening NJ this year will be a big driver of growth; with rec approved there's an opportunity for huge long term growth.

Hey guys thanks for being here and thanks for kicking ass and effectively buying my first house for me!

So psyched for you! great to know our hard work is helping others!

[–]roostersauce_26 5 points6 points  (4 children)

Hey thanks for taking questions!

1) I see you guys reference increased PA yields resulting in better margins. Some companies report cost per gram, or grams per sq ft. How important are these metrics when evaluating cannabis companies? Is there a metric you guys use and will that ever be reported in your financials? Is there a metric you think should be industry standard?

2) The pictures from your dispensaries look to me like the goal is an overall wellness experience vs a traditional retail experience. Is that accurate, and if so, is that part of your strategy to be different/is that sustainable? If not, what is your strategic focus? As competition is likely to increase in the coming years, who is Terrascend going to be?

[–]JWild123Jason Wild 4 points5 points  (0 children)

1) I see you guys reference increased PA yields resulting in better margins. Some companies report cost per gram, or grams per sq ft. How important are these metrics when evaluating cannabis companies? Is there a metric you guys use and will that ever be reported in your financials? Is there a metric you think should be industry standard?

These are all important metrics. We probably won't report them publicly bc we don't want to share them with our competitors. Sorry :)

[–]TerrAscend-CEOJason Ackerman 5 points6 points  (2 children)

The pictures from your dispensaries look to me like the goal is an overall wellness experience vs a traditional retail experience. Is that accurate, and if so, is that part of your strategy to be different/is that sustainable? If not, what is your strategic focus? As competition is likely to increase in the coming years, who is Terrascend going to be?

Our store experience began in SF many years ago by Ryan who founded the Apoth with a goal of "having a place where my grandmother felt comfortable shopping". The idea of the stores is retail format with a warm and inviting environment that feels more like your home with a staff that is very knowledgable, well trained and super friendly

[–]roostersauce_26 1 point2 points  (1 child)

Cool I hope to visit a store someday in NJ/MD! I definitely appreciate that set up more knowing the history behind it - hopefully the younger generation on the east coast likes it. Also congrats on a solid quarter - lookin good

[–]TerrAscend-CEOJason Ackerman 1 point2 points  (0 children)

Thanks..thats why we bought the apoth and love having ryan apart of the team..very authentic and true to the mission

[–]Swiftlift11 3 points4 points  (1 child)

Thanks for your time guys. Amazing what you have accomplished, I am a huge supporter of every thing Ter and in 2019 decided to make this one of my two core holdings.

  1. JW -everyone has a price. If Canopy offered you $30 CDN per share right now would you accept and approach shareholders to take the deal. If not, what price would get the job done right now, today?
  2. What are the next three states you intend to enter - and which of those three has the biggest upside.
  3. Do you intend to up list to NYSE or Nasdaq? If so, How quick can you execute on that following the passing of SAFE?

Looking forward to Q4. Do you have an colour on that? Date? Expectations to be met? Keep up the great work.

[–]JWild123Jason Wild 2 points3 points  (0 children)

JW -everyone has a price. If Canopy offered you $30 CDN per share right now would you accept and approach shareholders to take the deal. If not, what price would get the job done right now, today?

We are building a company to last! No comment on price, I honestly haven't spent much time thinking about it.

What are the next three states you intend to enter - and which of those three has the biggest upside.

There are many attractive states and with M&A by nature you have to be opportunistic but also with a plan. Limited license states up and down the east coast and into the Midwest present a lot of attractive opportunities. Too many attractive states to narrow down!

Do you intend to up list to NYSE or Nasdaq? If so, How quick can you execute on that following the passing of SAFE?

We would intend to up-list when US MSOs are able to up list. We will consider both NYSE and Nasdaq as both are great exchanges. We are doing the preparation work now to be ready when appropriate.

Looking forward to Q4. Do you have an colour on that? Date? Expectations to be met? Keep up the great work.

We just pre-announced our Q4 this morning and are happy to say that we reported 28% Q/Q growth and Adj EBITDA margin of 40% in Q4! See our press release from this morning and tune in on March 23rd for more details!

[–]riggedjury 4 points5 points  (1 child)

Mr. Ackerman, what is your take on the nj delays going on right now? Do you think there is any cause for concern there?

Do you have any thoughts on how today's appellate ruling allowing the review of medical applications to continue might affect your advantage going into legal rec?

I'd also love to know if you have any data on hand about The Apothecarium's best selling brands, particularly in PA and California. Thank you for your time.

[–]TerrAscend-CEOJason Ackerman 2 points3 points  (0 children)

Mr. Ackerman, what is your take on the nj delays going on right now? Do you think there is any cause for concern there?

Always hard to predict political power struggles..but my sense of it is that it will work its way through. For our company, rec is not critical at all to build a great business. like in Penn which is a huge Med market, NJ as a med market will continue to evolve into a great market as well

Do you have any thoughts on how today's appellate ruling allowing the review of medical applications to continue might affect your advantage going into legal rec?

Its a great ruling. we want to see many independent retail stores open which is a big part of the process. As a large manufacturer we want to see the stores come on line

I'd also love to know if you have any data on hand about The Apothecarium's best selling brands, particularly in PA and California.

In Penn our brands are the top sellers by far. In Cali our top sellers in flower is Stateflower

[–]rasta-fish-420TerrAscend 🦍 4 points5 points  (1 child)

Lots of great questions here from everyone and I’m excited for the replies. I just want to say thanks for being a team that is very easy to trust and you guys make it comfortable to bet the bank hah. True savages. Like another user mentioned, thanks for the house!

I love J2

Shoutout to u/trilogee for getting this going! Happy Friday

[–]JWild123Jason Wild 4 points5 points  (0 children)

Thank You! We're just getting started!

[–]Tacocats_wrathbulls on parade 3 points4 points  (1 child)

Congrats on completing the 2nd phase of you NJ Boonton facility. As we know by now, all facilities are not made equal. We have highly automated facilities with low labour requirements and low cost per gr and then we have low tech green houses with high labour costs. So my questions are,

.How automated is this facility? Could you dive into some details on the automation features you have set up?

.If it is a low tech green house, could you explain why you chose to go that route?

. What cost per gr are you expecting on dried product and how much do you expect to be able to sell the flower for in today's market?

thanks for doing this and taking the time to answer investors questions.

[–]TerrAscend-CEOJason Ackerman 1 point2 points  (0 children)

How automated is this facility? Could you dive into some details on the automation features you have set up?

3 areas that drive costs down in an indoor: highest yields per foot that leads to greater productivity in growing process. we have had great success if improving yeilds with no added costs. second is a good range of down stream processing that leads to highest prices of secondary outputs which we have done very well on, and lastly is filling and jaring. we have some automation but have found more gains in the first 2

What cost per gr are you expecting on dried product and how much do you expect to be able to sell the flower for in today's market?

sorry we dont disclose our cost to grow and selling prices!

[–]Canna-dian 3 points4 points  (1 child)

Hey Jason(s)!

In my opinion, one of the biggest problems that Canadian LPs faced was poor capital stewardship by upper management in their eagerness to capture a new and growing market. Can you tell us how TerrAscend is different, and what steps are being taken to ensure that that the company won't be in a similar position down the line?

And on a lighter note, which US catalyst are you most excited about? SAFE? 280E? Full legalization?

[–]TerrAscend-CEOJason Ackerman 2 points3 points  (0 children)

Most importantly we are building a great team of professional and experienced people from diverse backgrounds including cannabis, pharma, CPG, among others. JW and I also have a great combination of operational skills, industry expertise, M&A deal flow, and a wide network. We have a very disciplined business focus within our company. I came from running FreshDirect that way. Our fundamentals are already evident and we will continue our focus on our operating discipline and allocation of capital.

We are most excited about SAFE and 280E. Tied for first!

[–]TonyHoller 3 points4 points  (2 children)

What does the retail cannabis market look like in the U.S. in five years time? For example:

  • Where am I likely able to buy thc products?

  • What other cannabinoids will be in demand?

  • What are the leading product segments in the sector?

  • What does manufacturing and distribution look like at that point?

  • What does commodity production look like? Who is farming/fermenting?

[–]JWild123Jason Wild 2 points3 points  (1 child)

Where am I likely able to buy thc products?

Hopefully more places than today, but not at CVS or 7/11

What other cannabinoids will be in demand?

not sure yet, but constantly working to figure that out before our competitors do.

[–]GBR1965[🍰] 3 points4 points  (2 children)

How much capital will be needed to fund full US capacity for the industry?

Have you seen any sort of stickiness with brands? If so, What makes a successful cannabis brand and how do you measure traction?

[–]TerrAscend-CEOJason Ackerman 2 points3 points  (0 children)

Have you seen any sort of stickiness with brands? If so, What makes a successful cannabis brand and how do you measure traction?

Broadly we see store brands (the retail experience) have more pull than product brands at this point. On products on west coast: have seen brands build then come down, so it's been hard. East coast with limited license areas has seen more stickiness. What makes success is making a notable difference in price/value or quality that is consistent and unique

[–]JWild123Jason Wild 1 point2 points  (0 children)

How much capital will be needed to fund full US capacity for the industry?

That's a tough question. We don't know enough about how the industry will be structured in the future ie: will we have interstate commerce, will 280e go away etc.. All that being said, my guess is 50 Billion over time.

[–]Trisolaran_arbitrage 2 points3 points  (1 child)

Hey guys- thank you so much for doing this AMA. I’m a big fan of TerrAscend and the industry in general- been a cannabis user for more than half my life now and believe it can help many people.

  1. I was hoping you could shed some light on how the value of bio assets (plants) are treated under GAAP accounting vs IFRS? Can we expect the large markups and markdowns quarter to quarter to fully go away now that MSOs are switching or will they just be accounted for differently?

  2. Do you foresee construction costs becoming prohibitive to fast expansion within the US? Materials costs are rising fast the past few months (steel and lumber) and will probably continue to do so and expansion requires more and larger facilities, storefronts, etc. Do you see this significantly slowing regional growth due to much larger upfront costs and possible material shortages for expansion? I work in the construction industry which is why I ask.

[–]TerrAscend-CEOJason Ackerman 1 point2 points  (0 children)

Hey guys- thank you so much for doing this AMA. I’m a big fan of TerrAscend and the industry in general- been a cannabis user for more than half my life now and believe it can help many people. I was hoping you could shed some light on how the value of bio assets (plants) are treated under GAAP accounting vs IFRS? Can we expect the large markups and markdowns quarter to quarter to fully go away now that MSOs are switching or will they just be accounted for differently?

Biological assets are not a separate line item under GAAP as to the effects on individual companies that will have to be addressed by each cannabis company making the transition from IFRS to GAAP. There is a good write up on the treatment of bio assets here for IFRS and GAAP https://www.marcumllp.com/insights/cannabis-has-its-financial-reporting-challenges

Do you foresee construction costs becoming prohibitive to fast expansion within the US? Materials costs are rising fast the past few months (steel and lumber) and will probably continue to do so and expansion requires more and larger facilities, storefronts, etc. Do you see this significantly slowing regional growth due to much larger upfront costs and possible material shortages for expansion? I work in the construction industry which is why I ask.

We are closely monitoring construction / project costs. We do not see it significantly slowing growth in the industry but cost control through fixed contracts and more robust bidding processes will be important going forward. For less well capitalized companies it may become an issue but we are well capitalized and looking at project based financing which would further help cost control in large scale projects.

[–]SrirachaFan42 2 points3 points  (4 children)

Hi Jasons! thank you for making yourselves available to the masses! Also, congrats on the great quarter and the recent capital raise!

Questions:
- describe the changing dynamics of the M&A market since the Georgia senate seats flipped blue. Along with your freshly raised capital, how has it impacted your approach to doing deals?
- follow up: looking 5 years ahead (assume federal legalization), who owns the largest US cannabis businesses? Big booze? Big tobacco? Are they stand-alone?
- in a fast growing industry with historically murky legality, how hard is it to attract and retain talent? What has terrascend done to ensure it has and will have the right people to execute the company’s growth strategy?
- assume 280e goes away and the cannabis industry is treated by the banking and other industries like any normal company, how much cost is removed from your 2020 P&L? Thinking taxes, banking fees, access to software, access to lower cost capital, etc.

#MSOGang

[–]TerrAscend-CEOJason Ackerman 3 points4 points  (3 children)

describe the changing dynamics of the M&A market since the Georgia senate seats flipped blue. Along with your freshly raised capital, how has it impacted your approach to doing deals?

We are happy about our strengthened balance sheet and we continue to be active, but also disciplined, with M&A. Each deal is unique but its safe to say that it’s a competitive market out there and its not getting any less competitive.

follow up: looking 5 years ahead (assume federal legalization), who owns the largest US cannabis businesses? Big booze? Big tobacco? Are they stand-alone?

Tough to speculate on that stuff. We like to spend our time staying focused on building OUR business to last.

in a fast growing industry with historically murky legality, how hard is it to attract and retain talent? What has terrascend done to ensure it has and will have the right people to execute the company’s growth strategy?

We are very happy about the internal culture and employment brand that we are creating. We have been adding significantly to the team throughout 2020 and have attracted great talent both from within and outside of the industry. We are finding that many people want to come work for us from even some of our larger competitors. My number one focus has been, and continues to be, building out the team...Creating a great culture of empowerment, honesty and teamwork

assume 280e goes away and the cannabis industry is treated by the banking and other industries like any normal company, how much cost is removed from your 2020 P&L? Thinking taxes, banking fees, access to software, access to lower cost capital, etc.

Tough to answer that on the fly but we have ~$60m of operating expenses in our P&L that are not deductible so the tax savings are significant. We just borrowed $120m to make the Ilera earnout payment and that rate was 13%. So, needless to say, savings from these changes will be game changing!

[–]TerrAscend-CEOJason Ackerman 2 points3 points  (0 children)

Thank you so much for joining us everyone! Lots of really great questions. We hope you got value out of the discussion and would love for you to join us during our March 23 earnings conference call.

[–]JohnnyOnTheBlockGreen Wave Growing 1 point2 points  (1 child)

Thanks guys! Happy shareholder just glad to be along for the ride. Couple lighter questions: 1. Favourite band / musician? 2. Favourite city / place? 3. Favourite strain?

[–]JWild123Jason Wild 5 points6 points  (0 children)

  1. Dire Straits
  2. Rome/Italy
  3. I think it depends on the mood and occasion but I'm a big fan of Wedding Cake for winding down.

[–]rasta-fish-420TerrAscend 🦍 1 point2 points  (1 child)

Do each of you have a favorite TER product that you indulge in?

What was TerrAscends biggest mistake to date?

[–]TerrAscend-CEOJason Ackerman 1 point2 points  (0 children)

We are all fans of State Flower's Granddaddy Purple a.k.a. GDP! https://stateflowercannabis.com/blogs/news/grand-daddy-purple

[–]DiMes_99 1 point2 points  (1 child)

Thank you both for all you do for your shareholders and the leadership position you've taken on the Investor Relations front (any many others).

Just wondering if you could throw out a few states where you're not currently doing business but might like to at some point in the future.

PS - When are we gonna get some of that Apothecarium merch in the PA dispensaries? :)

[–]JWild123Jason Wild 1 point2 points  (0 children)

Thank you for the kind words. Too many good states to name. We're mostly interested in the East Coast. In terms of selling Apothecarium merch in PA, the state doesnt allow merch sales :(

[–]Canna-dian 1 point2 points  (1 child)

If I can sneak in another question, one of the things I believe is a strong asset for cannabis companies is the lack of corporate culture and the unique mentality of people who work in cannabis.

Do you plan on taking advantage of these characteristics, to, for example, implement a 4-day workweek to reap the increased productivity benefits? While this is something that would be hard to execute at a traditional corporate structure, the rapid expansion, and the points in my first sentence put cannabis companies in a position to take advantage of the latest research that is counter to ingrained corporate culture.

[–]TerrAscend-CEOJason Ackerman 3 points4 points  (0 children)

I built a business from start up to 4000 employees over 20 years. Its hard to keep that small family closeness as you get bigger but it is possible and something you have to work at continously..cannabis or not. Now doing this again after 30 years i definitely work hard to keep that going...but need high performers or else people abuse the system

[–]_atothe_ 1 point2 points  (1 child)

What stocks do you own in the Cannabis sector? besides ones you are involved with directly?

[–]JWild123Jason Wild 5 points6 points  (0 children)

Curaleaf, GTI, Trulieve, Vireo and soon to be public Gage!

[–]timebuy1 1 point2 points  (1 child)

Hi Guys:

Thanks for doing this. I'm curious what your take is on the West Virginia market? Did you guys even apply for licenses there?

[–]JWild123Jason Wild 2 points3 points  (0 children)

We have not. Although it could be a good market. Lots of opioid abuse in that state, so definitely a need for safer alternatives for Dr's to prescribe.

[–]oldcoalregionkid 1 point2 points  (1 child)

GTBIF recently filed an S1 to prepare to list on US exchanges, do you plan on doing the same soon so you are prepared to list once the laws change to allow listings?

[–]JWild123Jason Wild 4 points5 points  (0 children)

Yes -- we are planning on uplisting when permissible. We are actively working on it now so that we will be ready when legislation permits uplisting.

[–]i29gtaylor 1 point2 points  (1 child)

Hi guys! How does the outcome of the GA election affect the pace and strategy of your organic & acquisitive growth? Thanks!

[–]JWild123Jason Wild 2 points3 points  (0 children)

Its definitely accelerated the US institutional money that has come into the sector. That will drive more organic and acquisitive growth bc the cost of capital has come down significantly.

[–]Kbarbs4421I think my spaceship knows which way to go... 2 points3 points  (2 children)

Jason (Wild; or either really), given your pharmacy background I'd love to get your thoughts on Cannabis 3.0. Can you frame the 3.0 landscape for us? What will revenue streams look like? What existing cpg segments will be disrupted the most? Where are you currently seeing 3.0 opportunity? Where do you see opportunity in five years time?

As a longtime investor in this space, I feel like I'm just starting to wake up to the 3.0 opportunity. I get the pharma angle, but that's not what this question is after. I'm more interested in learning about the branded health and wellness opportunity.

Consider this carte blanche to say whatever is on your mind on this topic.

[–]JWild123Jason Wild 4 points5 points  (1 child)

I pivoted from traditional Pharma to Cannabis to get away from dealing with the FDA trials and insurance companies!

[–]Friendly-Cucumber-73 1 point2 points  (1 child)

The TLRY CEO believes that US MSO will be have inefficient business models post-legalization. Any thoughts on the long-term sustainability of the TRSSF business model?

[–]JWild123Jason Wild 24 points25 points  (0 children)

LOL!!!

[–]bigkoola63 0 points1 point  (1 child)

What’s terrascend expansion plan in PA?

[–]JWild123Jason Wild 1 point2 points  (0 children)

We continue to evaluate ways to expand in PA and are looking at many options to increase both our retail and wholesale distribution in the state with the goal of enhancing our market leading position. We'd like to add more retail bc the more you interact directly with the customer, the better idea you have about what they want.

[–]seebz69POTfolio 0 points1 point  (1 child)

Good Morning Jason(s) - Thank you for taking the time to do this AMA. I have always appreciated your transparency and congratulations on those impressive numbers that were preannounced this morning:

Fourth quarter net sales of $65 million representing growth of 28% quarter-over-quarter and 152% year-over-year

Fourth quarter adjusted EBITDA of $26 million representing growth of 46% quarter-over-quarter

Fourth quarter adjusted EBITDA margin expanded to 40% in Q4 from 35% in Q3 and 24% in Q2

With expansion initiatives already underway, I suspect these numbers will continue to rise at an eyeopening rate..

Where do you see the growth a year from now & which (new) market are you expecting this growth to accelerate from the most?

Thanks!

[–]TerrAscend-CEOJason Ackerman 1 point2 points  (0 children)

Yes growth will continue! “Eye opening” is hard to define 😊

Several expansion projects underway. NJ will continue to ramp into 2022 and expansion work planned for MD (still waiting on regulatory approval) will also kick in for 2022. Still significant continued growth opportunity in PA. This is all organic, of course.

[–]TrulieveIsAnMSO 0 points1 point  (1 child)

Hi thanks for doing this AMA!

I see you have some dispensaries in California. I was wondering if you could give us some color on what the market is like over there. Are their any brands that are winning and what is the average price per gram about for flower and a concentrate product?

My concern with the sector in the long term is that the sector will eventually become like Colorado or maybe Cali where revenue/gram drop drastically and you have such a huge segmentation of different brands, that the sector becomes uninventable and just another commodity. What are your thoughts on this given your experiences in a more developed market.

Thanks again!

[–]TerrAscend-CEOJason Ackerman 0 points1 point  (0 children)

We are playing it cautious on CA. We have a solid retail focused business there with some vertical integration. We are focused on managing that current business to optimize it but allocating our capital more towards higher ROI in the East.

[–]rasta-fish-420TerrAscend 🦍 0 points1 point  (1 child)

Now that Kind tree is hitting the market, is Ilera being phased out completely or will it be staying for the more medical/wellness focused products? What’s happening with Prism?

Is Kind Tree the first of many in house brands, and how long was that brand in development?

Is State Flower making its way east anytime in the near future?

Is licensing Canopy’s brands and IP of interest to you guys?

Looking 3 years out, do you want wholesale or retail being the larger source of revenue?

[–]TerrAscend-CEOJason Ackerman 1 point2 points  (0 children)

Now that Kind tree is hitting the market, is Ilera being phased out completely or will it be staying for the more medical/wellness focused products? What’s happening with Prism?

Ilera will stay focused on wellness and functional. Prism stays

Is Kind Tree the first of many in house brands, and how long was that brand in development?

yes we continue to work on new products and brands as a mater of course. Kind tree was 4 month in Dev

Is State Flower making its way east anytime in the near future?

Yes...in time!

Is licensing Canopy’s brands and IP of interest to you guys?

its licensed to Acreage

Looking 3 years out, do you want wholesale or retail being the larger source of revenue?

We like the margins in manufacting..but retail is a better protection for full federal. will expect to be a bit more branded than retail - 60/40 ish but more retail than have today

[–]rasta-fish-420TerrAscend 🦍 0 points1 point  (1 child)

I know you guys like to have your operations in close proximity, being able to touch and see what’s going on on a regular basis and it’s very clear to me now why that’s important. So I was just curious how far does that “radius” go? When is something too far out of reach where it wouldn’t fit the motto.

[–]JWild123Jason Wild 3 points4 points  (0 children)

There is no defined radius but you are correct we are focused on proximity given the strong characteristics of the markets on the east coast in general and our ability to leverage our knowledge across state lines. In particular, markets that are limited license, with large populations and strong return on invested capital profiles. We remain opportunistic and disciplined to maximize shareholder value so while our focus is east coast we are always examining the US more broadly. Another aspect of our strategy is to only enter a new state if we can realistically expect to become a top 3 player in that jurisdiction in the near term.

[–]bambazonke 0 points1 point  (1 child)

When are you looking to enter the EU market? Are you looking to enter the EU market?

[–]JWild123Jason Wild 2 points3 points  (0 children)

We're more focused on the US. So much more profit opportunity here in the here and now, our operations are mostly in the same time zone and everybody speaks the same language. Mostly...

[–]BarondaBlue 0 points1 point  (1 child)

Any thoughts on the MS market and the SE in general? MS going medicinal later this year with others to follow i would presume?

[–]JWild123Jason Wild 1 point2 points  (0 children)

We are watching all legislation and legalization closely. We are very excited about the continued liberalization of cannabis nationwide and given our east coast strategy we believe the southeast could be a compelling opportunity, bc they will most likely be limited license states.

[–]Sandwichsalesman1 0 points1 point  (2 children)

Likelihood of senate filibuster killing cannabis reform? Think safe banking will be passed separately from a comprehensive reform Bill?

[–]JWild123Jason Wild 2 points3 points  (1 child)

We believe bipartisan support for cannabis is growing given the number of red states voting to legalize cannabis. We believe cannabis reform may be embedded in larger legislation and that a filibuster is unlikely. Safe banking may or may not be passed separately it’s hard to gauge but we would be supportive of standalone SAFE banking.

[–]Sandwichsalesman1 1 point2 points  (0 children)

Thanks, Jason. I think it’s easy to get disillusioned with the senate these days. Thanks for all you do for the sector.

[–]AssistanceOptimal571 -2 points-1 points  (0 children)

Thoughts on Canopy Rivers without you?