Business
Jason Wild details how TerrAscend became a TSX trailblazer for US marijuana
When Jason Wild, the executive chair of marijuana multistate operator TerrAscend Corp., and his team first approached potential investors earlier this year to raise $15 million to list on the Toronto Stock Exchange, he said hardly anyone was interested.
Wild even offered to let his brother-in-law, who has supported his ventures in the past, use his house in the Hamptons for six weeks for free instead of renting a place down the block for around $40,000 if the relative agreed to pump an additional $50,000 into TerrAscend.
Wild’s brother-in-law initially agreed but then reneged after talking it over with his wife, who told him the family couldn’t do it after all.
“‘We can’t lose any more money on cannabis,’” Wild recalled his brother-in-law saying in an interview with MJBizDaily.
A lot of investors are feeling the same way, Wild said – something that’s reflected in the low stock prices among publicly held U.S. operators.
Shares of the AdvisorShares Pure US Cannabis ETF – which includes big multistate operators and trades as MSOS on the New York Stock Exchange Arca – have fallen from around $20 in March 2022 to just below $5.
“If this is so hard for us, then it’s got to be impossible for others,” Wild would say to colleagues Ziad Ghanem, TerrAscend’s CEO, and Keith Stauffer, chief financial officer, on a daily conference call.
But Wild and his colleagues were able to raise $21 million in equity and senior unsecured convertible debentures in two tranches to meet the TSX’s listing requirements, largely through what he said were smaller checks for amounts between $10,000 and $50,000.
The company – which operates in Canada, California, Maryland, Michigan, New Jersey and Pennsylvania – completed its corporate restructure, also required by the TSX.
On July 4, TerrAscend became the first U.S. plant-touching company to list on the third-largest stock exchange in North America, trading as TSND.
The move could give the company access to a deeper pool of institutional investors, and already, big financial institutions such as Morgan Stanley have removed the company from its “restricted” list of marijuana-related businesses.
Other companies could follow. New York-based Curaleaf Holdings, for example, is watching closely and could follow suit.
On TerrAscend’s earnings call for the quarter ending June 30, Wild and his team celebrated the company’s “transformative” year, citing achievements such as:
- A 7% net revenue increase year-over year to $72.1 million for the second quarter.
- Increasing its gross profit margins from 37.5% year-over-year to 50.2%.
- Acquiring three Maryland stores, bringing its number to four, the state’s cap.
- Paying down $37 million of a senior secured term loan in Pennsylvania and closing a $25 million loan from Stearns Bank at a lower interest rate.
- Selling the company’s head office and winding down cannabis production operations in Canada.
- Increasing TerrAscend’s ownership stake in its Cookies store in Toronto and opening its fifth Cookies store in Michigan.
The company’s net loss was $12.9 million compared with $19.2 million in the first quarter and a net income of $16.9 million in the second quarter of 2022.
Andrew Parthenious, a research analyst for Quebec-based financial services company Stifel, wrote in an Aug. 10 newsletter that TerrAscend “has transformed into a growth story which is scarce in this industry.”
Pioneering Canadian cannabis
Wild, 50, first became interested in legal cannabis as an investor.
He started investing in his last year of pharmacy school at the University of Wisconsin while following in the footsteps of his pharmacist dad, who ran pharmacies in New York.
His college roommate lent him books by investing legend Peter Lynch, and Wild began taking his advice to “buy what you know,” focusing on the pharmaceutical and health sectors.
In his first year as a pharmacist, Wild said he earned $60,000 and managed to put $20,000 into his Charles Schwab account for investing purposes.
He said that year he earned more than $400,000 from those investments and started to see that he had a gift for picking drug stocks.
Wild continued working as a pharmacist in New Jersey as he started his own fund, JW Asset Management.
JW Asset Management grew its assets from the tens of thousands to the tens of millions and eventually bought a company called Arbor Pharmaceuticals in 2010 for $2 million.
Arbor’s sales grew from $2 million to $127 million, and Wild’s fund sold a third of the company to private equity firm KKR & Co.
It was around that time that Wild heard that Canada was legalizing medical cannabis.
“I’ve been a fan of cannabis since I was 20 years old or something like that, at college, and I’d never been to a grow,” Wild said.
He toured regulated medical cannabis cultivation facilities north of the border, and JW Asset Management became one of the first American institutional investors in Canadian legal cannabis, investing in companies such as Cronos Group and Mettrum, which later became a brand of Canopy Growth Corp.
After getting to know the cannabis landscape and its players, Wild said he told former Canopy CEO Bruce Linton that he believed he could join the competition and be more hands-on.
“I said to Bruce, ‘I think that if I started something from scratch or we funded something from scratch, we could do like an Arbor 2.0 or something like that,’” Wild said.
“It just seemed like there was no competition.”
In 2017, Wild convinced one of the Canadian companies his fund had invested in, TerrAscend, to take a private placement of 52.5 million Canadian dollars from him and Canopy Growth.
Wild became chair of the company and made its first U.S. cannabis acquisition in 2019, buying a San Francisco cannabis chain, The Apothecarium, in a deal valued at more than $118 million.
TerrAscend has since grown its U.S. operations to five state markets, leading the competition in market share in many of those states.
Uphill battle ahead
In the large, lucrative New Jersey market, TerrAscend has maintained its top-three share position and increased its margins to more than 50%, largely through increasing its cannabis yields.
It’s still early days in Maryland, where adult-use sales got off to a strong start after launching in July.
In Pennsylvania, the company plans to continue to run lean operations in the state’s medical market until adult-use marijuana is legalized – assuming it is indeed legalized.
It’s in competitive and oversaturated Michigan that TerrAscend could be most impressive, growing sales in its 19 stores by 6% from the previous quarter and developing consumer loyalty to its Gage and Cookies stores.
CEO Ziad Ghanem said in an interview with MJBizDaily that part of what’s driving those increases is thinking more carefully about various types of consumer segments in different regions of the state.
Michigan borders Indiana, Ohio and Wisconsin.
Indiana and Wisconsin have no legal marijuana markets, and Ohio’s is currently medical only.
Ghanem said stores close to the border have a different product mix than urban stores – for example, with premium products such as Cookies being a hot commodity among curious cross-border buyers.
Those border-store consumers also take less frequent trips but also want to buy more – meaning bulk and value are important to prioritize in those stores as well.
“We’re looking for those insights and making decisions based on that data,” Ghanem said.
Despite the company’s accomplishments thus far, the remainder of 2023 and 2024 will be the true test of whether TerrAscend is positioned for success.
Wild has repeatedly said on earnings calls and media interviews that the TSX listing isn’t a “magic bullet” that will immediately solve problems around raising capital.
But he told MJBizDaily he believes the listing is already making some crucial incremental progress.
For example, Morgan Stanley and BNY Mellon have removed the ban on providing custodial services for the company’s TSX listing, which could improve its chances of securing the institutional investment it hopes for in an upcoming road show.
The slow pace of federal marijuana reform and disappointing returns so far have scared a lot of investors away from the industry in recent years, and it’s far from certain the TSX listing will generate institutional investors’ interest in TerrAscend.
Firms will need to decide whether investing fits within their compliance, Wild said, but at least he knows the ban won’t get in the way if TerrAscend can attract interest.
“We’ve got what we think is a really good growth story out of this,” he said.
“I’m super grateful that we’re not where we were a year ago. where we got this thing that people thought might be good but we weren’t able to go in there and tell them.”
Source: https://mjbizdaily.com/how-terrascend-became-toronto-stock-exchange-trailblazer-for-us-cannabis/
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.
India’s Indigenous LEO Satellite Vision
Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.
The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.
According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.
The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.
Regulatory Process Moves Forward
Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.
The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.
Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.
Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.
Broadband, Mobile Connectivity, and Strategic Applications
Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.
The company also intends to establish 20 to 22 ground stations across India to support network operations.
Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.
Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.
Major Step for India’s Space and Telecom Sectors
Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.
The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.
Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.
Fake Business Deals and Dishonoured Cheques Used in Fraud
Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.
In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”
Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.
Multiple Identities and Repeated Fraud Pattern
Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.
Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.
Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.
Multi-State Surveillance Leads to Arrest in Surat
A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.
Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.
Growing Threat of Corporate Identity Fraud
The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.
Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.
Experts Urge Stronger Due Diligence in High-Value Transactions
Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.
Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
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