Unlike many other multi-state operators (MSOs), TerrAscend has focused on creating greater scale and market share in a smaller number of states rather than spreading across many markets. This cannabis industry leader has now decided to reduce some debt as it prepares to increase the size of its US footprint. With this strategic plan, TerrAscend may be starting 2023 off on the right foot.
While it is true that the marijuana industry had a year with strong headwinds, the MSO has still been able to access capital. When TerrAscend wanted to enter the US market, it did so through a gold mine, California. Through its acquisition in the Golden State, the company has five dispensaries in the state under the Apothecarium name, as well as a brand in San Francisco (State Flower) and a cultivation facility.
The Michigan market has also seen a strong current from TerrAscend. Having completed the acquisition of Gage Growth and Pinnacle in March and August, respectively, the company began to build a name among everyone in the Great Lakes State. Now, the firm is considering adding additional dispensaries at attractive multiples to drive profitability in the state.
In addition to having operations in other key states, TerrAscend also has retail and wholesale operations. Its focus is on producing high-quality flowers for its own brands. This is not to say that the company is uninterested in forming partnerships with other brands. Since it began working with Cookies, the company’s sales have been boosted.
Chairman Jason Wild, president of the company, sees value in having both retail and wholesale operations. In his view, companies that grow and sell their own products improve their margins. Consumers want to see more selection when they go to a store, and that is why TerrAscend continues to work day and night to become one of the most recognized brands.