TerrAscend Announces Strong Revenue Growth and Margin Improvement for the Third Quarter of 2019

-- Third quarter revenue of $26.8 million, an increase of 53% from $17.6 million in the second quarter and compared with $1.8 million in the third quarter of 2018

-- Improved gross profit margin to 26.1% from 12.3% in the second quarter

-- Increasing strategic focus on larger and higher margin U.S. markets

-- Significantly higher revenue and continued improvement in Adjusted EBITDA(1) margin anticipated in the fourth quarter

TORONTO, Nov. 20, 2019 /PRNewswire/ - TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) ("TerrAscend" or "the Company"), the first and only global cannabis company licensed for sales in Canada, the U.S., and the EU, today reported financial results for the third quarter ending September 30, 2019. All figures are reported in Canadian dollars, unless otherwise indicated.

Third Quarter 2019 Financial Highlights

    --  Third quarter 2019 revenue increased 53% quarter-over-quarter to $26.8
        million from $17.6 million in the second quarter of 2019 and compared
        with $1.8 million in the third quarter of 2018. Revenue growth was
        driven by higher overall sales in Canada as well as strong sales in the
        U.S.
    --  Pro forma revenue(1) for the third quarter of 2019 was approximately $44
        million.
    --  Gross profit for the third quarter of 2019 was $7.0 million, compared
        with $2.2 million in the second quarter of 2019 and ($0.6) million in
        the third quarter of 2018.
    --  Adjusted EBITDA(1) for the third quarter of 2019 was ($6.5) million,
        compared with ($8.7) million in the second quarter of 2019 and ($6.3)
        million in the third quarter of 2018.
    --  As of September 30, 2019, the Company held $6.9 million in cash and cash
        equivalents. Subsequent to quarter end, the Company closed on two
        tranches of the previously announced non-brokered private placement for
        total proceeds of approximately $18.0 million.



            1.             Pro forma revenue, EBITDA and
                             Adjusted EBITDA are Non-IFRS
                             measures. Please see discussion
                             and reconciliation of Non-IFRS
                             measures below.

Management Commentary

"Two weeks into my new role, I continue to be impressed with TerrAscend's unique assets and competitive positioning in both the United States and Canada," said Jason Ackerman, TerrAscend's Executive Chairman. "I see even greater potential for our business as we sharpen our focus on the U.S., where we are extremely well positioned to become a leader in the markets we serve. My top priority now is to operationalize the company's strategy while driving continued growth, improving profitability and fortifying our financial strength."

Added Michael Nashat, CEO of TerrAscend, "We are on track to deliver a year of tremendous progress for the overall company both operationally and financially. This has been especially evident in recent months, where we expanded our portfolio of U.S. assets with the addition of Ilera Healthcare in Pennsylvania, booked our first international shipment of medical cannabis to Europe, and received Health Canada approvals which tripled the licensed space at our Mississauga facility enabling future sales of new product formats and extracts for the Canadian Cannabis 2.0 market. Meanwhile, we have grown total sales in the third quarter to nearly $27 million from less than $2 million a year ago with improving margins."

"Looking ahead, we anticipate significantly higher revenue and continued improvement in Adjusted EBITDA margin in the fourth quarter, and further improvement on both fronts next year. While the current Canadian environment has presented challenges for the industry as a whole, the future is bright for TerrAscend and our ability to build long-term shareholder value."

Financial Summary



     
                (In ooo's of Canadian Dollars, Except Per Share Amounts)  Q3 2019            Q2 2019      Q1 2019   Q3 2018






     Sales                                                                          $
     26,831           $
        17,572             $
     14,582 $
     1,786



     Gross profit (loss) before gain on fair value of biological assets       4,800               1,509         1,507    (1,464)



     Net impact, fair value of biological assets                              2,196                 649           427        848



     Gross profit (loss)                                                      6,996               2,158         1,934      (616)





     Total operating expenses                                                25,342              18,246        11,604      7,338



     Loss from operations                                                  (18,346)           (16,088)      (9,670)   (7,954)





     Net loss and comprehensive loss after income tax                      (17,309)           (21,532)     (11,200)   (2,834)



     Less: Net loss attributable to non-controlling interest                  (265)              (432)        (160)      (71)



     Net loss and comprehensive loss attributable to TerrAscend Corp.      (17,044)           (21,100)     (11,040)   (2,763)



     Net loss per share - basic and diluted                                  (0.33)             (0.37)       (0.26)    (0.03)





     EBITDA (non-IFRS measure)                                             (15,009)           (16,777)      (9,475)   (2,582)



     Adjusted EBITDA (non-IFRS measure)                                     (6,508)            (8,707)      (5,543)   (6,318)




              1.               EBITDA and Adjusted EBITDA are
                                 Non-IFRS measures. Please see
                                 discussion and reconciliation of
                                 Non-IFRS measures below.

Corporate Highlights

    --  Late in the third quarter, TerrAscend acquired Ilera Healthcare LLC
        ("Ilera"), the owner of one of five fully vertically integrated licenses
        in the State of Pennsylvania. Ilera operates a retail dispensary in
        Plymouth Meeting, PA, with plans to open two additional dispensary sites
        in the Philadelphia area. The operations include a 67,000 sq. ft. site
        for cultivation and processing in Waterfall, PA with planned expansion
        to over 120,000 sq. ft. in 2020. In addition to selling its cannabis
        products in its own dispensary, Ilera distributes to 70 dispensaries
        throughout Pennsylvania.
    --  TerrAscend entered into a definitive agreement to acquire a company that
        operates a Bay Area cultivation facility and owns State Flower, the
        premium cannabis brand. State Flower is currently sold through
        dispensaries in California and Nevada, including The Apothecarium.
    --  TerrAscend Canada received an amendment to its license from Health
        Canada to allow it to sell cannabis oils from its EU GMP certified
        facility in Mississauga, Ontario. Sale of cannabis oil sales began
        immediately through TerrAscend's medical marketplace, Solace Health.
    --  TerrAscend Canada made its first international shipment to Germany
        through its sales and distribution agreement with iuvo Therapeutics
        GmbH, making it the first and only global cannabis operator with sales
        in the US, Canada, and the EU.
    --  TerrAscend Canada entered into an exclusive distribution agreement with
        Syqe Medical, an Israel-based pharma-tech company, to launch its
        flagship inhaler product to the Canadian market. The Syqe(TM) Inhaler is
        the world's first metered dose medical cannabis inhaler that provides
        predictable, precise and consistent treatment at pharmaceutical
        standards.

Subsequent Events

    --  On October 7, 2019, TerrAscend Canada announced that it received
        approval from Health Canada for an expansion at its Mississauga, Ontario
        facility, nearly tripling its licensed space to 51,800 sq. ft. The
        expanded space includes additional cultivation capacity, a commercial
        kitchen, formulation rooms, and increased primary and secondary
        packaging capacity to allow for new product formats and extracts for the
        Canadian Cannabis 2.0 market.
    --  On October 11, 2019, The Apothecarium was nominated as a finalist in the
        U.S. Retail Market Leader category in the inaugural MJBizDaily Awards.
    --  On October 22, 2019, TerrAscend Canada received an additional amendment
        to its license from Health Canada to allow for sales of cannabis
        extracts, topicals and edibles.
    --  On October 23, 2019, TerrAscend Canada announced a strategic partnership
        with Kindred Partners Inc., a specialty cannabis brokerage and services
        company, where Kindred will serve as the exclusive broker for
        TerrAscend's adult-use cannabis products in Canada.
    --  On November 4, 2019, the Company announced the appointment of Jason
        Ackerman to the Board of Directors in the role of Executive Chairman.

Financings

    --  On August 27, 2019, the Company announced the early exercise of purchase
        warrants to acquire proportionate voting shares representing 28,636,361
        common shares of the Company for aggregate proceeds of approximately
        $31.5 million. The proceeds were used to fund the Company's growth
        initiatives and for working capital purposes.
    --  On October 2, 2019, the Company announced a non-brokered private
        placement of unsecured convertible debentures and warrants in the amount
        of US$25 million and has successfully closed two tranches for total
        proceeds of $18.0 million. The first tranche of the offering consisted
        of a US$10 million investment from Canopy Rivers Inc. (TSX: RIV, OTC:
        CNPOF) into TerrAscend Canada. The Company intends to use the proceeds
        from the first tranche to fund its growth initiatives, capital
        expenditures, working capital and general corporate purposes, provided
        that none of the proceeds may be used in connection with any cannabis or
        cannabis-related operations in the U.S. The Company subsequently closed
        on a second tranche on November 7, 2019, for additional gross proceeds
        of approximately $4.76 million, which may be used for all operations.
        The Company continues to work toward the closing an additional tranche
        or tranches. The Company is also discussing financing options with
        multiple strategic investors to support growth and looks forward to
        providing updates at the appropriate time.
    --  On November 4, 2019, the Company's wholly owned subsidiary, Ilera,
        entered into a loan agreement with a related party to borrow up to US$4
        million, bearing interest at 12% per annum, payable monthly, and due on
        or before June 30, 2020, with no prepayment penalty. US$2 million has
        been subsequently drawn to fund the expansion of the Pennsylvania
        facility.

Financial results and analyses are available on the Company's website (www.terrascend.com) and SEDAR (www.sedar.com).

The Canadian Securities Exchange ("CSE") has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

About TerrAscend
TerrAscend provides quality products, brands, and services to the global cannabinoid market. As the first North American Operator (NAO), with scale operations in both Canada and the US, the Company participates in the medical and legal adult use market across Canada and in several US states where cannabis has been legalized for therapeutic or adult use. TerrAscend is the first and only cannabis company with sales in the US, Canada, and Europe. TerrAscend operates a number of synergistic businesses, including The Apothecarium, an award-winning cannabis dispensary with several retail locations in California and Nevada; Arise Bioscience Inc., a manufacturer and distributor of hemp-derived products; Ilera Healthcare LLC, Pennsylvania's premier medical marijuana cultivator, processor and dispenser; Ascendant Laboratories Inc., a biotechnology and licensing company committed to the continuous improvement of cannabinoid expressing plants; Solace RX Inc., a proposed Drug Preparation Premises (DPP) focused on the development of novel formulations and delivery forms; and Valhalla Confections, a manufacturer of premium cannabis-infused edibles. Additionally, TerrAscend has been chosen by the State of New Jersey to be one of six permit applicants for a vertically integrated medical cannabis operation. For more information, visit www.terrascend.com.

Non-IFRS Measures, Reconciliation and Discussion
Certain financial measures in this news release are non-IFRS measures, including Pro forma revenue, EBITDA and Adjusted EBITDA. These terms are not defined by IFRS and, therefore, may not be comparable to similar measures provided by other companies. These metrics have no direct comparable IFRS financial measure. Such information is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For more information, please see "Non-IFRS Financial Measures" in the Company's Interim MD&A available on www.sedar.com.

Pro forma revenue is a non-IFRS measure which management uses to capture total revenue plus revenue from pending and closed acquisitions as if such acquisitions had occurred at the beginning of the performance period. The Company considers this measure to be an appropriate indicator of the growth and scope of the business.

EBITDA is a non-IFRS measure which management uses to evaluate the performance of the Company's business as it reflects its ongoing profitability. EBITDA is calculated as earnings before interest, tax, depreciation and amortization.

Adjusted EBITDA is a non-IFRS measure which management uses to evaluate the performance of the Company's business as it reflects its ongoing profitability. The Company believes that certain investors and analysts use Adjusted EBITDA to measure a company's ability to service debt and to meet other payment obligations or as a common measurement to value companies in the biopharmaceutical industry. The Company measures Adjusted EBITDA as EBITDA less unrealized gain on changes in fair value of biological assets and other income plus fair value changes in biological assets included in inventory sold, purchase accounting adjustments, transaction costs, share based compensation and unrealized loss on investments. The Company believes that this definition is suited to measure the Company's ability to service debt and to meet other payment obligations.

Certain comparative figures have been reclassified to conform to the current period's presentation.

Caution Regarding Cannabis Operations in the United States
Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the US Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable US federal money laundering legislation.

While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve TerrAscend of liability under US federal law, nor will it provide a defense to any federal proceeding which may be brought against TerrAscend. The enforcement of federal laws in the United States is a significant risk to the business of TerrAscend and any proceedings brought against TerrAscend thereunder may adversely affect TerrAscend's operations and financial performance.

Forward Looking Information
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information contained in this press release may be identified by the use of words such as, "may", "would", "could", "will", "likely", "expect", "anticipate", "believe, "intend", "plan", "forecast", "project", "estimate", "outlook" and other similar expressions, and include statements with respect to future revenue and profits. Forward-looking information is not a guarantee of future performance and is based upon a number of estimates and assumptions of management in light of management's experience and perception of trends, current conditions and expected developments, as well as other factors relevant in the circumstances, including assumptions in respect of current and future market conditions, the current and future regulatory environment; and the availability of licenses, approvals and permits.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Actual results and developments may differ materially from those contemplated by these statements. Forward-looking information is subject to a variety of risks and uncertainties that could cause actual events or results to differ materially from those projected in the forward-looking information. Such risks and uncertainties include, but are not limited to, risks related to closing subsequent tranches of the Offerings; the expected timing for completion of subsequent tranches of the Offerings, including the satisfaction of customary closing conditions; current and future market conditions, including the market price of the common shares of the Company; risks related to federal, state, provincial, territorial, local and foreign government laws, rules and regulations, including federal and state laws in the United States relating to cannabis operations in the United States; and the risk factors set out in the Company's annual information form dated May 31, 2019, filed with the Canadian securities regulators and available under the Company's profile on SEDAR at www.sedar.com.

The statements in this press release are made as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Financial Outlook
This press release contains a financial outlook within the meaning of applicable Canadian securities laws. The financial outlook has been prepared by management of TerrAscend to provide an outlook for the fourth quarter of 2019 and may not be appropriate for any other purpose. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed under the heading "Forward Looking Information" above and assumptions with respect to production, pricing, and demand, and that the acquisition of the Nevada operations of The Apothecarium will be completed late in the fourth quarter of 2019. The actual results of TerrAscend's operations for any period will likely vary from the amounts set forth in these projections and such variations may be material. TerrAscend and its management believe that the financial outlook has been prepared on a reasonable basis. However, because this information is highly subjective and subject to numerous risks, including the risks discussed under the heading "Forward Looking Information" above, it should not be relied on as necessarily indicative of future results. Except as required by applicable Canadian securities laws, TerrAscend undertakes no obligation to update the financial outlook.

TerrAscend undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of TerrAscend, its securities, or financial or operating results (as applicable).


                                                                                                   
              
                SCHEDULE 1




                                                                                                
              
                TerrAscend Corp.


                                                                           
         Unaudited Condensed Interim Consolidated Statements of Loss and Comprehensive Loss


                                                                               
              For the Three and Nine Months Ended September 30, 2019 and 2018


                                                                         
       
             (Amounts expressed in thousands of Canadian dollars, except for per share amounts)




                                                                                                                                                     Three Months Ended                    Nine Months Ended

                                                                                                                                                       September 30,                     September 30,



                                                                                                                                   2019                               2018          2019                      2018






     Sales                                                                                                                               $
              26,831               $
         1,786                            $
     58,985 $
     1,795





     Cost of sales:



     Cost of goods sold                                                                                                         19,496                              1,706        46,569                     1,713



     Impairment of inventory                                                                                                       980                              1,081         1,744                     1,704



     Production salaries and wages                                                                                                 915                                 93         1,635                       543



     Production amortization and depreciation                                                                                      114                                103           316                       280



     Production supplies and expenses                                                                                              526                                267           905                       456





     Gross profit (loss) before gain on fair value of biological assets                                                          4,800                            (1,464)        7,816                   (2,901)





     Unrealized gain on changes in fair value of biological assets                                                               2,283                                917         3,736                     1,593



     Realized fair value amounts included in inventory sold                                                                       (87)                              (69)        (464)                     (69)




     Gross profit (loss)                                                                                                         6,996                              (616)       11,088                   (1,377)





     General and administrative expense                                                                                         14,606                              5,029        37,800                    10,030



     Research and development                                                                                                      197                                 70           494                       101



     Share-based payments                                                                                                        7,227                              2,090        11,593                     4,066



     Amortization and depreciation                                                                                               3,312                                149         5,305                       344




     Total operating expenses                                                                                                   25,342                              7,338        55,192                    14,541





     Loss from operations                                                                                                     (18,346)                           (7,954)     (44,104)                 (15,918)





     Finance expense (income)                                                                                                    2,118                              (100)        4,187                     (435)



     Impairment of intangible assets                                                                                                                                               58



     Unrealized loss (gain) on investments                                                                                         236                            (5,079)        2,822                   (5,079)



     Unrealized gain on note receivable                                                                                          (120)                                          (120)



     Foreign exchange loss                                                                                                          32                                168           134                       168



     Other income                                                                                                                 (19)                             (109)         (19)                    (193)





     Loss before income taxes                                                                                                 (20,593)                           (2,834)     (51,166)                 (10,379)



     Current income tax recovery                                                                                                 (928)                                          (889)



     Deferred tax recovery                                                                                                     (2,344)                                        (3,130)



     Net loss                                                                                                                 (17,321)                           (2,834)     (47,147)                 (10,379)



     Other comprehensive (income) loss                                                                                            (12)                                          2,894




     Comprehensive loss                                                                                                       (17,309)                           (2,834)     (50,041)                 (10,379)






     Net loss attributable to:



     TerrAscend Corp.                                                                                                         (17,056)                           (2,763)     (46,290)                 (10,308)



     Non-controlling interests                                                                                                   (265)                              (71)        (857)                     (71)





     Comprehensive loss attributable to:



     TerrAscend Corp.                                                                                                         (17,044)                           (2,763)     (49,184)                 (10,308)



     Non-controlling interests                                                                                                   (265)                              (71)        (857)                     (71)





     Net loss per share - basic and diluted                                                                                     (0.33)                            (0.03)       (0.99)                   (0.11)




     Weighted average number of outstanding common shares                                                                   53,140,274                         95,870,702    47,556,603                95,218,013



                                       
              
                SCHEDULE 2




                                    
              
                TerrAscend Corp.


                                   
              Unaudited Consolidated Revenue


                     
            For the Three and Nine Months Ended September 30, 2019 and 2018


                    
            
                (Amounts expressed in thousands of Canadian dollars)




                                            Three Months Ended                                      Nine Months Ended

                                            September 30,                                      September 30,



                         2019                            2018                             2019                  2018






     Canada                     $
              8,879                          $
              1,786                         $
     25,038 $
     1,795



     United States    17,952                                                          33,947




     Consolidated              $
              26,831                          $
              1,786                         $
     58,985 $
     1,795


                                                                                   
              
                SCHEDULE 3




                                                                                
              
                TerrAscend Corp.


                                                                       
          Unaudited Reconciliation of Net Loss to Adjusted EBITDA


                                                                     
        For the Three and Nine Months Ended September 30, 2019 and 2018


                                                                    
        
                (Amounts expressed in thousands of Canadian dollars)




                                                                                                                                                                      Three Months Ended                           Nine Months Ended

                                                                                                                                                                      September 30,                           September 30,



                                                                                                                                             Notes               2019        2018                     2019          2018

                                                                                                                                                                                                                  ---




     
                Net loss                                                                                                                                (17,321)    (2,834)                (47,147)     (10,379)



     
                Add (deduct) the impact of:



     Current income tax recovery                                                                                                                    (928)                             (889)



     Deferred tax recovery                                                                                                                        (2,344)                           (3,130)



     Finance expense                                                                                                                                2,155                              4,187



     Depreciation of property, plant and equipment                                                                                                             555         216                    1,401           549



     Amortization of intangible assets                                                                                                                       2,874          36                    4,317            75




     
                EBITDA                                                                                                                     (a)            (15,009)    (2,582)                (41,261)      (9,755)



     
                Add (deduct) the impact of:



     Unrealized gain on changes in fair value of biological assets                                                           
              (b)                  (2,283)      (917)                 (3,736)      (1,593)



     Realized loss on changes in fair value of biological assets                                                             
              (c)                       87          69                      464            69



     Purchase accounting adjustments                                                                                         
              (d)                      829                               2,616             -



     Transaction costs                                                                                                       
              (e)                    2,419                               6,224             -



     Share-based payments                                                                                                    
              (f)                    7,351       2,191                   12,113         4,478



     Unrealized loss (gain) on investments                                                                                   
              (g)                       98     (5,079)                   2,822       (5,079)




     
                Adjusted EBITDA                                                                                                            (h)             (6,508)    (6,318)                (20,758)     (11,880)




              
                Notes:


    ---

               (a) EBITDA is a non-IFRS measure
                and is calculated as earnings
                before interest, tax, depreciation
                and amortization.


               (b) Represents fair value changes
                of biological assets based on the
                average stage of growth of plants
                compared to expected growth period
                of plants from planting to
                harvesting.


               (c) Represents the portion of
                inventory harvested and sold in
                the period that is related to the
                changes in fair value of
                biological assets.



               (d) In connection with the
                Company's acquisitions, inventory
                was acquired at fair value, which
                included a markup for profit.
                Recording inventory at fair value
                in purchase accounting had the
                effect of increasing inventory and
                thereby increasing the cost of
                sales in subsequent periods as
                compared to the amounts the
                Company would have recognized if
                the inventory was sold through at
                cost. The write-up of acquired
                inventory represents the
                incremental cost of sales that
                were recognized as a result of
                purchase accounting.  It is
                anticipated that this inventory
                will be sold in fiscal 2019 and
                fiscal 2020 and will impact net
                income in both periods.



               (e) In connection with the
                Company's acquisitions, the
                Company incurred expenses related
                to professional fees, consulting,
                legal and accounting that would
                otherwise not have been incurred.
                These fees are not indicative of
                the Company's ongoing costs and
                are expected to be incurred only
                as additional acquisitions are
                completed.


               (f) Represents non-cash share-
                based compensation expense.


               (g) Represents unrealized loss on
                fair value changes on strategic
                investments held.


               (h) Adjusted EBITDA is a non-IFRS
                measure and is calculated as
                EBITDA before realized and
                unrealized fair value changes in
                biological assets, acquisition
                related adjustments and
                transactions costs, share-based
                payments and fair value changes in
                investments.


                                                                         
              
                SCHEDULE 4




                                                                      
              
                TerrAscend Corp.



                                                        
      Unaudited Condensed Interim Consolidated Statements of Financial Position


                                                          
              
                (Amounts Expressed in Canadian Dollars)




                                                                                                                   September 30                December 31,

                                                                                                                           2019                         2018




     
                Assets



     Cash and cash equivalents                                                                                                     $
       6,853               $
     21,773



     Receivables, net of expected credit losses                                                                         18,225                        9,641



     Notes receivable                                                                                                    6,290                        1,561



     Investments                                                                                                         4,993                        7,690



     Biological assets                                                                                                   4,916                          545



     Inventory                                                                                                          32,182                       14,844



     Prepaid expenses and deposits                                                                                      10,939                        2,427



     Deferred costs                                                                                                        291                          313




     Total Current Assets                                                                                               84,689                       58,794





     Investment in joint venture                                                                                                                     2,732



     Investment in associate                                                                                             1,324



     Property, plant and equipment                                                                                      98,243                       25,427



     Intangible assets and goodwill                                                                                    345,280                        2,025



     Deferred tax asset                                                                                                  1,165




     Total Assets                                                                                                                $
       530,701               $
     88,978






     
                Liabilities and Shareholders' Equity



     Accounts payable and accrued liabilities                                                                           27,062                       17,677



     Deferred revenue                                                                                                    1,256                           12



     Loan payable                                                                                                       60,546                       12,683



     Contingent consideration payable                                                                                   47,802



     Lease liability                                                                                                       983



     Corporate income tax payable                                                                                        2,329                           16




     Total Current Liabilities                                                                                         139,978                       30,388





     Loan payable                                                                                                        6,331



     Contingent consideration payable                                                                                  118,566



     Lease liability                                                                                                    20,566



     Other liability                                                                                                    18,111



     Deferred tax liability                                                                                             25,180                          688




     Total Liabilities                                                                                                 328,732                       31,076






     Shareholders' Equity



     Share capital                                                                                                     228,975                       64,883



     Warrants reserve                                                                                                   30,707                       14,335



     Share-based payments reserve                                                                                       17,886                        7,849



     Accumulated other comprehensive loss                                                                              (2,894)



     Deficit                                                                                                          (76,649)                    (30,596)



     Non-controlling interest                                                                                            3,944                        1,431




     Total Shareholders' Equity                                                                                        201,969                       57,902






     Total Liabilities and Shareholders' Equity                                                                                  $
       530,701               $
     88,978

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SOURCE TerrAscend