Terrascend Corp. · TSX:TSND
Terrascend — Investor Presentation (March 2022)
27 slides from Terrascend's investor presentation, March 2022
Slide 1: Investor Presentation
> AN TERRASCEND Investor Presentation | ~ @ z im March 2022 | TerrAscend.com (CSE: TER | OTCQX: TRSSF)
Slide 2: Disclaimer and Forward-Looking Information
Investors and prospective investors should rely only on the information contained in the disclosure filings (the “Filings”) of TerrAscend Corp. (the “Company” or “TerrAscend”). This presentation is qualified in its entirety by reference to, and must be read in conjunction with, the information conta
Slide 3: Company history and milestones
CA Canopy Growth financing $60M Dec. 2020: Closed $140M Opened 2nd and 3rd PA of debt financing dispensaries Acquired Jan. 2021: Initial investment in Pivoted operations Opened 4th California Raised $175M in non-brokered Announced Acquisition of TerrAscend of $52.5M to the US Market dispensary in Be
Slide 4: Creating a leading, vertically-integrated, North American Operator
Creating a leading, vertically-integrated, North American Operator
Slide 5: Company Strategy
Company Strategy © SZ Delight our customers with great brands & outstanding retail experience AN (CSE: TER | OTCQX: TRSSF) Depth & Scale in Attractive Limited License States Vertical Integration to Maximize Quality & Profitability a Operational Excellence & Financial Discipline aly Sa Focused on Exp
Slide 6: Operating footprint by market
Population Population Population Population Million Million Million Million Vertically Rapidly Growing Super Premium Leadership in Branded Integrated Market & Scalable Flower & Retail Products1 Licenses Footprint Dispensaries Market type: Market type: Market type: Market type: Limited License • Medi
Slide 7: Pennsylvania market details and operations
Market Details: Population: 12.8 Million Type: Medical Size: $1.2 Billion/year – Current1 $3.9 Billion/year - 20252 TerrAscend Operations: Processing) • 1 of 5 originally permitted vertically integrated cannabis cultivator, processor, and dispensary operators • State-of-the-art ~150K Sq Ft cultivati
Slide 8: New Jersey market details and operations
Market Details: Population: 8.9 Million Type: Medical Size1: $600 Million/year – Current Lodi (Dispensary) $1.8 Billion/year – 2025 TerrAscend Operations: • 1 of 4 MSOs licensed within Northern NJ, adjacent to NYC • 1 of 12 vertically integrated operators in the State • Adult Use signed into law Feb
Slide 9: Maryland market details and operations
Market Details: Population: 6.3 Million Type: Medical Size1: $600 Million/year – Current $800 Million/year – 2025 TerrAscend Operations: • Acquired HMS Health in May 2021 • 20k Sq Ft cultivation and processing facility located in Frederick Hagerstown • Ability to acquire up to 4 Retail Licenses (Fut
Slide 10: California market details and operations
Market Details: Population: 39.5 million Valhalla Type: Medical/Adult-use (Edibles Manufacturing) Size1: $4.3 Billion/year – Current $5.7 Billion/year – 2025 Berkeley TerrAscend Operations: ) • Focused on San Francisco / Bay Area • State Flower 20K Sq Ft Cultivation facility • 5 Retail Dispensaries
Slide 11: Canada footprint
Population Million Market type: Unlimited License • Medical & Adult Use TerrAscend Footprint: • Headquartered in Mississauga, Ontario • 45K Sq Ft Production Facility • Focused on building flower market share and expanding existing portfolio of Cannabis 2.0 products, including: • Gummies • Pre-Rolls
Slide 12: Adjusted gross margin trend
Adjusted. GM%: 65% 59% 60% 61% 56% 45% 46% 18% 9% -16% 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21
Slide 13: Branded manufacturing versus retail mix compared with peers
• Focusing on wholesale distribution of branded manufactured products 39% 48% • Scaling cultivation and processing facilities in core markets 68% 69% 71% to support demand while maintaining cost leadership 77% 94% • Introducing complete portfolio of medical and consumer brands across U.S. footprint
Slide 14: Pennsylvania TTM brand market share
PA TTM Brand Market Share1 18.9% 14.9% 13.1% Brands Combined Market Share: 13.1% 8.5% 7.2% 6.7% 5.5% 3.4% 3.2% 3.1% 2.8% 2.8% 1.8% 1.6% 1.6% 1.5% 1.2% 1.2% 1.1% 0.8% 1. Source: Headset, Pennsylvania Top Brands Latest Twelve Months Ending September 2021
Slide 15: Expanding Portfolio of Brands
Expanding Portfolio of Brands Across TerrAscend’s North American Footprint & ‘VALHALLA: AN (CSE: TER | OTCQX: TRSSF)
Slide 16: Apothecarium retail experience
• 10 years of operating retail experience in San Francisco, CA Insert photo with • Designed to provide enhanced patient Apothecarium logo and customer experiences • Highly trained staff to provide product education • Online ordering available for express pick-up or delivery (in select markets) 1. Ar
Slide 17: Cookies brand licensing agreement
• Multi-Year Brand Licensing Agreement : • Subject to regulatory approval and certain conditions, TerrAscend will be the sole cultivator and manufacturer of Cookies products in New Jersey • In addition to staple Cookies flavors, TerrAscend and Cookies to develop and launch a unique Cookies menu that
Slide 18: Gage Cannabis acquisition and Michigan expansion
Deal announced on September 1, 2021 will expand TerrAscend’s U.S. footprint with full vertical integration in the rapidly growing Michigan market. • Leadership in a Top 3 Market: Gage has established itself as a leader in the Michigan market, which is the third largest cannabis market in the U.S.1 w
Slide 19: Pro forma footprint post-closing
1. Post-closing, anticipated in 1H2022, subject to satisfaction of closing conditions
Slide 20: Revenue growth and expansion milestones
• PA 3x cultivation expansion • 1 new dispensary | PA • PA 25% cultivation expansion and CA 4x expansion Year-over-year growth $161 • 4 new dispensaries across CA, PA & NJ • First NJ branded manufacturing hits the market $98 • NJ cultivation & production ramp up Year-over-year • 4 new dispensaries a
Slide 21: Non-IFRS measures note
1. Adjusted Gross (Profit)/Margin and Adjusted EBITDA are Non-IFRS measures. Please see discussion and reconciliation of Non-IFRS measures in our most recent earnings press release and filings on SEDAR.
Slide 22: Cash and liquidity
20 $18.0 15 Q3 2021 Cash & Equivalents Debt raised Q4 2020 10 5 Equity Raised in Q1 2021 TTM Cash Generated $1.6 from Operations 0 TTM Q3 2020 TTM Q3 2021
Slide 23: Quarterly revenue, Adjusted EBITDA and margins
$58.7 $24.3 $53.4 $22.6 $49.6 $49.1 $19.6 $38.1 +29% $13.2 $10.5 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21 65% 60% 61% 59% 30% 27% 27% 46% 25% 23% 3Q20 4Q20 1Q21 2Q21 3Q21 3Q20 4Q20 1Q21 2Q21 3Q21
Slide 24: Executive and Divisional Leadership Team
Executive Leadership Team Divisional Leadership Team
Slide 25: Share structure
(As of November 16, 2021) (in Millions) Common Shares 185 Preferred Shares (as converted) 14 Exchangeable Non-voting Shares 39 Total Basic Shares Outstanding 238 Warrants and Options 75 (Weighted Average Strike Price of CAD$5.09) Total Shares Outstanding (Fully-Diluted) 313
Slide 26: Our Focus
Our Focus waww 1 Happy Customers AN (CSE: TER | OTCQX: TRSSF) ©) wwe World-class Talent Strong Core Values Financial Discipline Technology p.26
Slide 27: TerrAscend.com
January 2022 | Terrascend.com (CSE: TER | OTCQX: TRSSF)