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
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.
AI & Technology
Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations
Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).
The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.
Trial Push Despite Multi-Million Euro Settlement
The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.
Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.
A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.
Allegations of VAT Evasion Through Marketplace Sellers
At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.
Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.
Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.
Italian Government Named as Affected Party
In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.
Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.
Multiple Investigations Add to Pressure
The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.
Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.
In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.
Amazon Denies Allegations
Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.
Broader Impact on Europe’s Digital Economy
If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.
With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.
Aviation
IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?
Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.
Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.
Root Cause: IndiGo’s Market Monopoly
The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.
This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.
Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.
Government Intervention and Regulatory Weakness
The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.
Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.
The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.
If Telecom Giants Fail: A National Paralysis
The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?
If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.
In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.
E-commerce Monopoly: Another Fragile Ecosystem
The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.
Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.
A Wake-Up Call for Regulators
The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.
As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.
Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.
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