One of the leading cannabis operators in the North American region is having great momentum amid the wave of disruptions that have impacted the industry since the outbreak of the coronavirus. TerrAscend presented its latest financial results with impressive growth, earning an increase in its stock price shortly after. Expert analysts at Clarus Securities are seeing with good eyes the company’s performance and are recommending this as a good moment to invest in this venture. According to analysts this year will be a decisive one for this vertically integrated company, which is having an aggressive approach to dominate some markets in the US.
There are several investments the company has made lately, with a special focus in Ilera Healthcare and Apothecarium, TerrAscend’s dispensary brand. As the company grows its operations in the US, and Apothecarium shows better returns, the company has surpassed Claru’s forecast of $14.51 million in revenue to total sales for $15.01 million during the fourth quarter. The total revenue reported for the quarter that ended in December 2019 was $18.6 million, meaning that most revenue going to TerrAscend is coming from the US market
Furthermore, Pennsylvania-based medical retailer Ilera, was able to count for over half of the revenue reported from the US market. The retailer thrived despite having limitations to work regarding the supply because of the construction that was undergoing. The operations started running smoothly earlier this year after the expansion was completed, and the facility began running at full capacity to be the producer to meet the strong cannabis demand in the state.
For Clarus Securities, this is a defining year for the company, as it focuses on accelerating operations in Pennsylvania, New Jersey and California, and, at the same time, investing effort in helping the Canadian market, which has been struggling with regulations. Overall, with is new production capacity, future revenue is expected to grow beyond $161 million.