TerrAscend Corp. · TSX:TSND
TerrAscend — Investor Presentation (June 2021)
22 slides from TerrAscend's investor presentation, Jun 14, 2021
Slide 1: Investor Presentation
Investor Presentation June 2021 | Terrascend.com (CSE: TER | OTCQX: TRSSF) (CSE: TER | OTCQX: TRSSF) p. 1
Slide 2: Disclaimer
Disclaimer Investors and prospective investors should rely only on the information contained in the disclosure filings (the “Filings”) of TerrAscend Corp. (the “Company”). This presentation is qualified in its entirety by reference to, and must be read in conjunction with, the information contained
Slide 3: Company Journey
Company Journey CA Dec. ‘20: Closed US$140M of debt Reported Q1 2021 Results: financing $53.4M Revenue $22.6M Adj. EBITDA Initial investment Acquired Canopy Growth Jan. ‘21: Raised $175M 42% AEBITDA margin in TerrAscend of TerrAscend pivots Financing in non-brokered private $234M cash on balance $52
Slide 4: Company Strategy
Company Strategy Delight our Depth in Attractive Vertical Operational Industry Leading customers with Limited License Integration to Excellence Digital & Data great brands & States Maximize Quality & Financial Capabilities outstanding retail Profitability & Discipline experience Scale (CSE: TER | OT
Slide 5: US MSO Footprint
US MSO Footprint 6 WEST COAST EAST COAST Maryland MARKET • Population 6.3m • Size ~$600m medical TERRASCEND • Acquired HMS Health in May 2021 • 20k sq ft cultivation and processing • Wholesale distribution capability • Ability to acquire up to 4 retail licenses (CSE: TER | OTCQX: TRSSF) p. 5
Slide 6: Pennsylvania is a Highly Attractive Market
Pennsylvania is a Highly Attractive Market MARKET PATIENT COUNT 450+ Limited License Attractive market dynamics 4.5x Increase in Patient Count with 100+ strong physician representation Mar ‘19 Mar ‘21 QUALIFYING CONDITIONS DISPENSARIES 186 122 State Allowable Dispensary 23 52% Strong range of additi
Slide 7: TerrAscend in Pennsylvania Today
TerrAscend in Pennsylvania Today GROWING • 1 of 5 permitted vertically integrated cannabis cultivator, processor, and dispensary operator • State-of-the-art cultivation 144K SF2 facility • #1 Supplier in branded manufacturer market (28% market share of flower segment*) • Over 170 cannabis strains •
Slide 8: High Quality Products Driving Strong Brand Awareness
High Quality Products Driving Strong Brand Awareness 45% 39.4% 40% 35% In a recent study1, patients in 30% Pennsylvania were asked 25% 21.7% which cultivator’s products 18.6% 20% they liked best, and Ilera’s were far and away the 15% highest ranked products 10% 8.3% 8.5% 3.5% 5% 0% Ilera Cresco GTI
Slide 9: New Jersey
New Jersey MARKET • Limited License • 1 of 4 MSOs within Northern NJ • 1 of 12 within State • Adult Use signed into law Feb ‘21 • 3 Retail Store Licenses (2 open in Philipsburg and Maplewood, 3rd to open late summer 2021) SITE • 16-acre site with the ability for ~240K SF2 of cultivation and processi
Slide 10: West Coast Strategic Focus: Northern California
West Coast Strategic Focus : Northern California MARKET Population 39.5M Market Size $4.3B BERKELEY | Q3’20 MARINA | Q3’17 Access Type Unlimited APOTHECARIUM CASTRO | Q2’11 SOMA | Q4’18 • Focused on organic growth in Northern, CA • Successful at applying for and winning licenses • Scaling our brands
Slide 11: The Apothecarium in San Francisco
• 10 Year operating experience in San Francisco, CA • Designed to provide enhanced patient and customer experiences • Highly trained staff to provide education • A wide variety of curated quality products • Options for online ordering for pick- up or delivery Our flagship Castro store was named the
Slide 12: Vertical Integration of Quality
VERTICAL INTEGRATION OF INHOUSE BRANDS Vertical Flower Edibles Integration of quality in-house brands driving overall profit margins Gummie pic (CSE: TER | OTCQX: TRSSF) p. 12 p. 12 p. 12
Slide 13: United States
United States Nationwide Distribution of CBD Products Brands Access to 10K+ Stores 50+ SKUs – Tinctures, Edibles, Vapes 15+ SKUs – Gel Caps, Tinctures (CSE: TER | OTCQX: TRSSF) p.p.13 13
Slide 14: Canada
64K+ SF² Facility 40+ SKUs – Flower, Vapes, Tea, Edibles Canada PRODUCTION (CSE: TER | OTCQX: TRSSF) p.p.14 14
Slide 15: Investing For Growth in Priority Markets
Q120 PA 3x Cultivation expansion harvested Investing For Growth in Priority Markets Q220 In market with 3x expansion of PA for full QTR 1 New Dispensary | PA ($M USD) 106% YOY NJ Cultivation DOH approval; Planting started July 2020 $53.4 Q320 GROWTH $49.6 2 New Dispensaries | CA & PA PA additional 2
Slide 16: Why TerrAscend?
TERRASCEND OVERVIEW Why TerrAscend? (CSE: TER | OTCQX: TRSSF) p. 16 p.16
Slide 17: Among Top 5 US MSOs across key Operational Metrics
Q1’21 Operational Metrics1 Among Top 5 65% 27% US MSOs Q1 Adj. Q1 SG&A Gross Margin % of Revenue3 across key ($USD)2 Operational $22.6M 42% Metrics Q1 Adj. EBITDA Q1 Adj. EBITDA % 1. Adjusted Gross (Profit)/Margin and Adjusted EBITDA are Non-IFRS measures. Please see discussion and reconciliation of
Slide 18: Strong Momentum Continued in Q1 Across All Key Metrics
Strong Momentum Continued in Q1 Across All Key Metrics NET REVENUE USD$M ADJUSTED EBITDA USD$M $53.4 AEBITDA AEBITDA % $49.6 $25.0 $22.6 $19.6 70% $20.0 60% $38.1 $13.2 $34.2 $15.0 50% 42% $25.9 +106% $10.0 $8.4 35% 40% 40% 30% $5.0 $3.7 25% 20% 14% $0.0 10% 1Q20 2Q20 3Q20 4Q20 1Q21 1Q20 2Q20 3Q20 4
Slide 19: Growth and Margin Expansion Expected to Continue in FY 2021
Growth and Margin Expansion Expected to Continue in FY 2021 FY 2021 Increased Guidance: Revenue to exceed US$300M and Adj EBITDA to exceed US$128M1 NET REVENUE $M ADJUSTED EBITDA $M >$300 >$128 >+103% >+185% $148 +122% 43% $45 $68 +320% 30% $(20) 2019 2020 2021 Est. 2019 2020 2021 Est. AEBITDA MARGI
Slide 20: Share Count Detail
Share Count Detail Fully Diluted Shares Outstanding Total Shares (As of May 19, 2021) (in millions) Common Shares 184 Proportionate Voting Shares (As converted) 0 Preferred Shares (As converted) 14 Exchangeable Non-Voting Shares 39 Total Basic Shares Outstanding 237 Warrants and Options 82 (Weighted
Slide 21: Our Focus
Our Focus HAPPY WORLD STRONG FINANCIAL DATA & CUSTOMERS CLASS TALENT CORE VALUES DISCIPLINE TECHNOLOGY (CSE: TER | OTCQX: TRSSF) p. 21
Slide 22: Thank You
Thank You (CSE: TER | OTCQX: TRSSF) p. 22