Leading cannabis operator TerrAscend (TRSSF) has been rapidly expanding its retail operations in the cannabis markets of Pennsylvania and Maryland. However, given the company’s lackluster financials and premium valuation, will the stock be able to rally in the near term? Read more to find out.Based in Mississauga, Canada, TerrAscend Corp. (TRSSF) is a cultivator and seller of medical and adult-use cannabis in the United States and Canada. The company has vertically integrated operations in New Jersey, Pennsylvania and California, licensed operations in Maryland and licensed production in Canada. Shares of TRSSF have soared 127.5% over the past nine months because of its cultivation expansions and operational tailwinds.
However, its stock has retreated 13.4% over the past month. In fact, TRSSF’s stock is trading 38.3% below its 52-week high of $16.25, which it hit on February 22.
While investors remain optimistic about TRSSF’s strategic acquisitions in Maryland and Pennsylvania, the company has been burning cash. It has a weak cash balance and negative profit margin. Furthermore, because federal legalization of cannabis is gaining steam, competition in the cannabis industry is expected to intensify.