A US multi-state operator broke new ground this past week by reaching conditional approval for a listing on the TSX.
Meanwhile, Canadian cannabis operator Canopy Growth (NASDAQ:CGC,TSX:WEED) shared less-than-bright new numbers, revealing that mishandling of financial results from its subsidiary has led to a formal investigation.
Keep reading to find out more cannabis highlights from the past five days.
TerrAscend ready to upgrade to the TSX
TerrAscend’s (CSE:TER,OTCQX:TRSSF) very big week started when the firm received approval for its planned acquisition of Peninsula Alternative Health, a medical dispensary based in Maryland, US. Jason Wild, executive chairman of TerrAscend, celebrated the timing of the approval as the state’s adult-use market is set to open on July 1.
‘We expect Peninsula to quickly become one of our highest performing dispensaries nationwide,’ he said.
The firm then let investors know about its intention to raise US$15 million through two separate private placements. TerrAscend said it plans to use these funds to further its exposure to Maryland, as well as for general working capital and for its plan to list on the TSX — arguably the company’s biggest announcement of the week.
The cannabis operator received ‘conditional approval’ to move its shares from the CSE to the TSX.
“We have an exciting future ahead of us and we can’t wait to share the TerrAscend story with the larger audience of participants that this listing brings,” Wild said. TerrAscend will get full approval to uplist to the TSX once it meets ‘certain customary conditions required by the exchange,’ according to a press release.
Shares of the firm have enjoyed a good week thanks to the news, as TerrAscend is the first openly US-based cannabis operator with a plant-touching business to pursue a listing on the biggest exchange in Canada.
The company closed Thursday’s (June 22) trading session with a share value increase of 5.61 percent. TerrAscend opened Friday’s trading session at a price of C$2.26.
Canopy’s BioSteel mishandling leads to SEC investigation
On Thursday, Canopy released the financial results for its fourth fiscal quarter of 2023, as well as the full year.
The company confirmed that a formal investigation is underway regarding errors related to recent results from its BioSteel Sports Nutrition division. The investigation comes after the company completed an internal review.
‘This review identified material misstatements in certain of our prior financial statements related to certain sales in the BioSteel business unit,’ the company said in a statement.
Overall, the correction has resulted in a US$10 million decrease in Canopy’s net revenue for the 2022 fiscal year.
‘As a result of the review, we are continuing to implement several remedial actions, including management changes and appropriate personnel actions,’ Canopy explained to investors in a press release. ‘The Company is also considering all legal options that may be available in connection with the associated overpayment made in FY2023 to the minority shareholders of BioSteel as a result of the overstatement of revenues.’
Canopy has listed this issue as a risk factor for investors to note. ‘As a result of self-reporting the BioSteel Review, the Company is the subject of an investigation by the (US Securities and Exchange Commission) and an ongoing informal inquiry by regulatory authorities in Canada, and it cannot predict the timing of developments, and any adverse outcome of these continuing matters could have a material adverse effect on the Company,’ the company states in its Form 10-K.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.