TerrAscend Corp. Announces $10 Million Share Buyback Program

LOS ANGELES- TerrAscend Corp., a prominent North American cannabis company, has initiated a normal course issuer bid (NCIB) to repurchase up to $10 million of its common shares over the next 12 months. The program, which begins on August 22, 2024, was approved by the company’s board of directors and reflects TerrAscend’s confidence in its growth prospects and commitment to enhancing shareholder value.

Executive Chairman Jason Wild emphasized the significance of this move, noting that the decision aligns with the company’s long-term growth strategy. “We believe our equity has compelling value and will be opportunistic with our share repurchases,” said Wild.

The company currently has approximately 291 million shares outstanding. TerrAscend is authorized to repurchase up to 10 million shares, equivalent to 5% of its public float. The buybacks are subject to a daily repurchase limit of 65,361 shares, representing 25% of the average daily trading volume on the Toronto Stock Exchange (TSX). Shares can be purchased on the TSX, the OTCQX Best Market, or alternative trading systems, adhering to U.S. and Canadian regulatory requirements.

Despite the authorization, TerrAscend is not obligated to make any purchases and may suspend or terminate the program if other financial priorities arise. The company noted that it does not anticipate taking on debt to finance the buybacks.

This buyback announcement follows the release of TerrAscend’s second-quarter 2024 financial results, which reported a net loss of $6.2 million but generated $11.7 million in free cash flow and cash reserves of $30.5 million. The company also recorded increased revenue of $77.5 million for the quarter.

TerrAscend joins other major cannabis companies like Verano Holdings Corp., Ayr Wellness Inc., and Green Thumb Industries in implementing stock buyback programs aimed at stabilizing share value and improving capital management. The repurchased shares will be canceled, effectively reducing the total number of shares outstanding and potentially boosting the value of remaining shares.