Following a continued decline in legalized Canadian cannabis markets, TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) is now officially withdrawing its previously announced 2019 revenue guidance.
In August, the company expected to exceed $141 million for the year after seeing increased revenues overall during the summer months.
Unaudited early numbers show the company hitting $26 million for the period ending Sept. 30, but upper management is now expecting to fall far short of the earlier summer projections.
TerrAscend board chairman Jason Wild commented on withdrawing the previously announced numbers:
Full Q3 2019 financial reporting from TerrAscend will be released on Nov. 20. Those numbers notably won’t include the closing of a first tranche of a $10 million private placement from Canopy Rivers Inc. (TSX: RIV, OTC: CNPOF) last month.
The possibility of a second tranche in that placement is still on the table while TerrAscend is actively working towards new investment opportunities.
Aside from withdrawing financial projections and securing financing, the company has seen a number of major changes to the leadership team recently, with President Matthew Johnson officially stepping down from his position.
EVP of Corporate Development Heather Molloy also just moved up to the Chief Strategy Officer position, while former FreshDirect Chief Executive Officer Jason Ackerman has joined the TerrAscend board.
Ackerman was immediately moved into the position of executive chairman, and in that role he will work alongside the company’s current board chairman and CEO to oversee daily U.S. and Canadian licensed cannabis operations.
While the Canadian industry has struggled over the past six months, TerrAscend and other licensed producers are looking towards the anticipated launch of value-added products such as edibles and vapes next month.
On that front, TerrAscend recently struck a deal with Kindred Partners to serve as broker for the company’s adult usage products in Canada. That deal will cover distribution and marketing for a variety of extracts and edibles produced at a facility in Mississauga, Ontario.
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