Good morning. My name is Joanna, and I will be your conference operator today. At this time, I would like to welcome everyone to the TerrAscend Corp Fourth Quarter 2020 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question- and- answer session. If you would like to ask a question during this time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. In consideration of other callers and time allotted, we do ask that you please limit yourself to three questions. I'll now turn the line over to Dan Foley, Senior Vice President of Treasury and Investor Relations. Please go ahead. Thank you, Joanna. Good morning, everyone. Welcome to TerrAscend's Fourth Quarter and Year-End 2020 Conference Call for the three- and 12-month period ending December 31st, 2020. Joining us for today's call is Jason Wild, Executive Chairman, Keith Stauffer, our Chief Financial Officer, and Greg Rochlin, Chief Executive Officer of Northeast Operations. Listeners are reminded that certain matters discussed in today's conference call or answers that may be given to questions asked could constitute forward-looking statements that are subject to risks and uncertainties relating to TerrAscend's future financial or business performance. Actual results could differ materially from those anticipated in these forward-looking statements. The risk factors that may affect results are detailed in TerrAscend's MD&A in other periodic filings and registration statements. These documents may be accessed via the SEDAR database. I'd like to remind everyone that this call is being recorded today, Tuesday, March 23rd, 2021. I would now like to introduce Mr. Jason Wild. Please go ahead. Good morning, everybody. Thanks for joining us today. Before we get started, I'd like to say a quick thank you to Jason Ackerman for his contributions during his time with TerrAscend as CEO and Executive Chairman. On behalf of the entire team, I'd like to wish him all the best in his future pursuits. On to the results. 2020 was a tremendously successful year for TerrAscend. We reached new heights across many financial and operational indicators quarter after quarter throughout the year. While 2020 has certainly been an incredibly challenging year for the economy and the country and the world, due to the COVID-19 pandemic, our team came together and executed on all fronts for our customers, patients, consumers, shareholders, and the communities in which we work. The results of this execution are reflected in strong top-line growth, continued gross margin expansion, further SG&A leverage, and strong cash flow generation for the quarter and the full year. These improvements drove our profitability to amongst the highest levels in the industry, with adjusted EBITDA margins reaching 40% in Q4. We achieved this milestone even faster than we expected on the strength of our execution and operational excellence. Looking at our growth plans for 2021, we will continue to focus on building depth and scale as we expand our footprint in attractive limited licensed markets. We will also continue to strengthen our capabilities by adding talent across the business to support this growth. While we continue to scale to meet current and anticipated demand in our markets, we have not lost sight of our core focus on being financially disciplined. Our goal is to build on the outstanding financial success of 2020. On the strength of this positive momentum, we are confident in raising our guidance for 2021, which Keith will discuss shortly. Turning to an overview of our operations. In Pennsylvania, we continued to distribute our branded products to 100% of the dispensaries in the state. In addition, in Q3, we further expanded our cultivation capacity at our PA facility by 25%. This increased capacity began contributing to revenue midway through Q4, and we are happy to report it immediately sold through. In addition to expanding our cultivation footprint, we are also increasing our production output through improved yields. As an example, output as measured in grams per square foot of canopy space increased by 36% from Q4 of 2019 to Q4 of 2020. As a result, our cost per pound has continued to decline, thereby enabling margins to continue to expand. With our customer centric philosophy and a focus on first class service we have seen demand for our products remain robust. And we've therefore begun work on further capacity expansion in 2021 to fuel further growth into 2022. Sales at our three retail dispensaries in Pennsylvania have continued to grow at a robust rate. Our three stores are performing well above average levels per store in the state, with run rates increasing 33% in Q4 sequentially. Patient satisfaction levels are high, with customer return rates increasing 37% and patient counts increasing by 24% in Q4 sequentially. The success of our business is ultimately decided by customer satisfaction and meeting patient needs. To that end, we are constantly working to deliver innovative new products and brands. For example, we recently introduced the Kind Tree brand to our East Coast markets. Kind Tree is a brand dedicated to producing exceptional cannabis with respect for the Earth and love for the plant. Kind Tree joins our existing brands, Ilera, which is more medically focused, and Prism, which produces high-quality concentrates. Turning to New Jersey, we're continuing to execute on our growth strategy there and are very excited about the passing of adult use legislation. We believe we are extremely well-positioned in this emerging and underserved consumer market. Our current medical cannabis business in New Jersey is now fully operational, performing well, and we will be prepared to service the expanded market with a broad array of products when adult use sales begin later this year. We have completed several harvests from our 40,000 sq ft greenhouse in Boonton, New Jersey, and we commenced sales from the greenhouse in late Q4. In addition, first harvest has been completed from our new 80,000 sq ft indoor facility, co-located in Boonton as well. We also announced last week that we have been awarded a permit to process and extract at our facility, which gives us the full capacity to sell a wide array of manufactured products. We anticipate that first sales into the market from our indoor harvests and extracted products will begin in the coming weeks. At the end of November 2020, we opened our first New Jersey retail location in Phillipsburg, and I am pleased to report that it is ramping quite well. As the only dispensary in Warren County and one of only a few dispensaries in Northwestern New Jersey, we've seen great foot traffic in the store, with some patients traveling more than a hour to access our high-quality products. Our second and third dispensary locations in New Jersey are on track to open in the second quarter and early in the third quarter, respectively. Both stores will be located in the densely populated New York City commuter corridor in the northeastern part of New Jersey. In Maryland, we are actively preparing to assume control of the HMS business once we receive final regulatory approval, which we expect in early Q2. Our entry into the $600 million Maryland medical market further strengthens our foundation on the East Coast. We look forward to leveraging our scale, strong portfolio of manufactured brands, and veteran Northeast operations teams who also oversee our New Jersey and Pennsylvania operations. Over time, we expect to achieve full vertical integration and assume a leadership position in this growing market. Turning to the West Coast, the operating environment in California remains challenging due to the ongoing COVID-19 situation in the state. Our recently opened fourth and fifth California stores in Capitola and Berkeley are gradually ramping up under these conditions. We expect conditions to improve as COVID-19 restrictions ease and the foot traffic recovers in these areas. Our recently expanded State Flower indoor cultivation facility in San Francisco continues to perform well, with all expanded capacity in use and selling through. This expansion significantly increased our ability to supply our ultra-premium State Flower products into the wholesale market and into our own The Apothecarium dispensaries. In Canada, the turnaround of the business there is progressing, and we are seeing further signs of success from the implementation of our clear and focused business model and strategy that is aligned with the current market conditions. As an example, I'm pleased to share that for the fourth quarter, TerrAscend Haven St. Indigo Daze 3.5 g jar SKU was the number one selling SKU out of 506 in the dried flower category in Ontario, which is Canada's largest cannabis segment or market. The dried flower category represents over half of all cannabis sales in Ontario. With our improved commercial focus and streamlined product portfolio, we feel confident that our strategy is on the right path in Canada. To summarize, 2020 was an incredible year for TerrAscend. We delivered record results, and our team successfully adapted to serve customers while maintaining high levels of customer satisfaction during the COVID-19 pandemic. I'm extremely proud of everybody's hard work throughout the year. With the strong footprint we have established in attractive states such as PA and New Jersey, along with the anticipated closing of HMS Maryland, we plan to continue to execute on our growth agenda in 2021. With adult use legislation now passed in New Jersey and increasingly being discussed in Pennsylvania and Maryland, we are well-positioned for future growth, and we look forward to updating you on our continued progress throughout the year. I would like now to turn the call over to Keith, who will discuss the financial highlights for the quarter, as well as providing updates to our financial guidance. Thanks, Jason. Good morning, everyone. As a reminder, the results I will be going over today can be found in our financial statements in MD&A and are expressed in Canadian dollars, unless otherwise noted. Net sales increased 152% to CAD 65.3 million in Q4 versus a year ago and increased 28% sequentially. This significant growth in revenue was primarily driven by recent cultivation expansions in Pennsylvania and California, our first sales in the New Jersey market, and the continued growth and ramp-up in our three Apothecarium dispensaries in Pennsylvania and the two new locations in California. Regarding net sales by channel, we grew our brand and manufacturing business in Q4 by 30% sequentially and by almost 200% versus a year ago, while we grew our retail business by 24% sequentially and by almost 100% versus a year ago. Branded manufacturing, with its healthier margin profile, represented 70% of our revenue mix in full year 2020. Adjusted gross margin for Q4 was 60%, compared with 59% in Q3. Note that adjusted gross margin is a non-GAAP measure, which excludes the fair value of biological assets and also excludes a Q4 inventory impairment in Canada, which is a non-recurring item. This sequential improvement in gross margin is the result of cultivation yield improvements in Pennsylvania, as well as continued increase in mix of Pennsylvania related to our additional expansion there. We have maintained our strong focus on cost control with SG&A expenses growing 10% sequentially relative to the net sales growth of 28%. As a percentage of revenue, SG&A further improved to 23% in Q4 compared to 27% in Q3. With these improvements, we remain at or near best-in-class levels of SG&A leverage in the sector. Our strategy to go deep, build scale, and leverage our cost structure, teams, and capabilities remains a core operating tenet that drives this strong leverage. Q4 adjusted EBITDA grew 46% to CAD 25.9 million, compared to CAD 17.8 million in Q3, further demonstrating the leverage present in our business as we continue to grow revenue. Adjusted EBITDA margin improved to 40% in Q3 from 35% in Q4, from 35% in Q3, 24% in Q2, and 14% in Q1. These significant quarter-by-quarter improvements are a clear indication that our focus on scale and cost control is driving profitability levels that are among the highest in the industry. We expect this progress to continue throughout 2021 as we ramp up our New Jersey business and continue to expand and gain efficiencies in Pennsylvania. Adjusted net income, a non-GAAP measure which excludes fair value of warrant liability and revaluation of contingent consideration, increased by 56% sequentially to a positive CAD 19.9 million for the quarter. Turning to the balance sheet, we ended the quarter with CAD 75 million in cash. We completed two debt financings in December. A $20 million loan from Canopy Growth to our Arise Bioscience division and a $120 million term loan secured by our Ilera Healthcare division. Towards the end of December, we paid $106 million towards the final earn-out payment for the acquisition of Ilera, with the remaining $30 million deferred to June 30th of this year. Subsequent to year-end, we closed on a CAD 224 million equity offering, further bolstering our balance sheet beyond the CAD 75 million cash reported at year-end. We feel confident that these recent capital raises, combined with our strong cash from operations generation, provide us with the balance sheet strength necessary to execute on our organic expansion plans and on our M&A agenda. Speaking of cash flow from operations, this result has also been improving throughout 2020. As a reminder, in the second quarter of 2020, we reported our first quarter of positive cash from operations at CAD 10 million. In Q4, we achieved a positive CAD 24 million in cash from operations, resulting in CAD 33 million for the full year. CapEx spending during the fourth quarter was approximately CAD 20 million compared to CAD 18 million in Q3 and CAD 61 million for the full year. CapEx was largely related to the build-out of our cultivation facility in New Jersey and to a lesser extent, the opening of new stores in California and cultivation expansions in Pennsylvania and California. This spending completes the full build-out of our current footprint with a few final payments due during Q1. Free cash flow net of CapEx was a positive CAD 5 million in Q4, which is the first positive free cash flow result for TerrAscend. We're pleased to report that we achieved this milestone one quarter earlier than our internal expectations. However, I'd like to note that due to the timing of certain payments, tax payments, and CapEx payments going forward, free cash flow may continue to be choppy on a quarterly basis, but continuing to improve over time, which is only natural given our phase of growth and the significant continued opportunities to invest in extremely attractive ROIC projects. Lastly, before turning the call over to questions, I'll take a few minutes to discuss our 2021 outlook and guidance. 2021 is shaping up to be a very exciting year for TerrAscend, and we expect to continue to achieve rapid growth and expansion. We anticipate continued growth in our Pennsylvania business. With Q1 2021 being the first full quarter following the completion of our increased cultivation expansion. New Jersey will be a leading growth driver for us throughout the year as we realize the full capacity of both the 40,000 sq ft greenhouse and the 80,000 sq ft indoor facility as the operation ramps throughout the year. It is important to note that we do expect the scaling and growth in this new capacity to be second quarter and back-half weighted as the operation continues to come online throughout the year. For New Jersey retail, Q1 2021 will be the first full quarter of sales from our Phillipsburg dispensary, and with the openings of our second and third dispensaries in Q2 and early Q3, we expect to see further growth in the back half of the year from these stores. In California, we will fully annualize the late Q3 2020 expansion of our State Flower cultivation facility, and we will see continued growth at retail with the further ramp-up in our fourth and fifth stores in Berkeley and Capitola, which opened in the back half of 2020. With our optimized business in Canada, we expect to see positive contributions to both sales and EBITDA growth in 2021. Finally, our recent acquisition of HMS Maryland will begin contributing to our sales once we have the required regulatory approval for closing of this transaction, which we expect in the early second quarter. Note that our 2021 guidance does not contemplate any expansion of the Maryland assets, though we do plan to expand the operation in Maryland during 2021, which will contribute to 2022 financially. Turning to our financial guidance, we plan to convert from Canadian dollars to U.S. dollars as our reporting currency effective with our Q1 2021 reporting cycle. Also, work is well underway to prepare TerrAscend to become a U.S. domestic filer with the SEC under U.S. GAAP later this year. In addition, we are preparing to meet the requirements necessary for our securities to trade on a major U.S. exchange if laws should change in the future to permit us to do so. More to come as we progress on all of these fronts. As a result of all of the strong growth drivers outlined here and our conversion to a U.S. dollar reporting currency, we are raising our guidance for 2021 and converting it to U.S. dollars. Our updated guidance reflects our expectation that we will exceed the high end of the previously announced guidance. Revenue is expected to exceed $290 million, and adjusted EBITDA is expected to exceed $122 million, leading to a full year EBITDA margin of at least 42%. Note that we have converted our 2021 guidance to U.S. dollars based on an exchange rate of CAD 1.3082, which prevailed when we originally issued our C anadian dollars guidance on November 19th. To close, we're very excited about our strong finish to what has been an extraordinary year for TerrAscend, and are even more excited for what is to come in 2021. I'd now like to turn the call back to the operator to open it up for questions. Thank you. Ladies and gentlemen, we will now begin the question- and- answer session. Should you have a question, please press the star followed by the one on your touchtone phone. You will hear a three-tone prompt acknowledging your request. If you are using a speakerphone, please lift the handset before pressing any keys. And a reminder, we do ask that you please limit yourself to three questions. First question is from Kenric Tyghe at ATB Capital Markets. Please go ahead. Thank you, and good morning. Jason, congrats to you and the team on the prints and the guidance revision, which I'll get to in my second or third question. I think top of mind this morning for everybody is obviously going to be the surprise announcement of Jason Ackerman's exit. Recognizing there are probably limits on what you can or will say, is there any additional color you could provide us on how we went from there to here and in pretty short order with respect to Jason's exit, just such that we can better understand the dynamics at play and some of the risks, perhaps, that that imputes for the rest of the year? Sure. I think that it's, to start with the end of your question first, I don't think that it should indicate to anybody that there's any risk as it relates to the business. Things are going very well. They have been exceeding our own internal forecasts. Jason's exit has nothing to do with the success of the business or how we've been executing. I think it truly just comes down to a difference in philosophy over management style and culture. That's really what it comes down to. I feel a lot better that we were able to do something. I don't feel good that we did this, what I'm saying is I feel better that the company is in such a strong position, it's not in any way an indication of Jason's exiting is not in any way an indication of anything that's wrong with the business. Me and the board just felt like it wasn't going to work out. To me, the best time to do something like this is when the business is running really well as opposed to if we were going through some troubles. Sorry, it probably doesn't fully answer all the questions you have about that, please don't take it as an indication that there's anything sort of lurking beneath the surface. The business is doing great. We've got obviously a big ramp in revenue coming on this year and a big ramp in profitability and margins. We just decided that it wasn't going to work out with Jason, and we decided to make the move. No, that's great color, Jason. Thank you. Just if I'm understanding you correctly, it's not just a function of the momentum you have, but the conviction or confidence you have in the bench strength. Obviously. That will see or limit any potential risks from his exit. Is that a correct way to characterize or think about this in terms of you do have that depth? Yes. If there were to be time between here and there and appointing a new CEO, that doesn't impute any potential slippage? Yes. Thank you. Thank you for pointing that out because I should have pointed that out, that we have some really strong executives at the company. Everybody has really been stepping up, and there are so many people that have a deep operational knowledge of the business at this point. Just to call out a few, and people that we have on the call here today, Greg Rochlin, who started Ilera in Pennsylvania, and sold that business to us and has stayed on and has been running the Northeast for us ever since, now probably about a year and a half. He is extremely involved in the business, and will be stepping up even more so in the coming days. He's on the call, and he's going to be available to answer some questions. Keith Stauffer, our CFO, has been with the business since the first half of last year and now is fully up to speed, and has been really stepping up and making a great contribution to the business. I believe we also have Jason Marks, our Chief Legal Officer, is on the call as well. Although, I don't think we're going to have too many legal questions. I've really been happy with the involvement that he's taken in the business over the last several months, because he is much more than just the Chief Legal Officer. He's a lawyer who really understands the business as well and deserves a seat at the table, and we've definitely been inviting him to the table much more. Those are just sort of three of the top executives that I think signal our bench strength. I don't have any doubt that these guys are going to continue to execute. When it comes to finding a CEO, we're not in any rush. I mean, the business is running well, and we've got a great team, so there's no fire drill going on here. We are looking for candidates, and we think that we'll be able to bring somebody in over time who's going to be able to contribute strongly to what the rest of the team brings. Thanks, Jason. That's great to hear. A quick final one for me. Just with respect to your guidance, it does not include any assumed contribution from New Jersey REC. Is it reasonable to believe that, given your expectations around timing, that that could potentially provide a buffer if New Jersey REC does actually come online in the fourth quarter, given that it's not in your 2021 guide? How should we think about the evolution there? Yep. And how much room there may be from a guidance perspective? Sure. I don't know that I would describe it as a buffer. I would describe it more as upside. I mean, this guidance does not assume any rec sales, that would be additive if sales kick in in Q4. We're not sure exactly when it will kick in. We've been hearing essentially sometime before the end of the year. We did not include any rec sales, that would just be additive to the guidance that we've provided today. Thank you. The next question comes from Glenn Mattson at Ladenburg Thalmann. Please go ahead. Hi. Yeah, thanks for taking the call. Very nice job as usual on the profitability. I'm curious just about, you obviously guided for a higher profitability next year. Can you give us some color or some level of understanding as to how much New Jersey is detracting as of right now from profitability and how much, once that kind of flips over to more revenue producing, how much that benefit you'll get from that swing? Just on the operating side, you do run some of the highest margins in the industry. Can you give us some confidence that it's just great execution and not that you're kind of starving the business for profitability now that could be harder to overcome in the future? Sure. Keith, do you want to answer that question? Yeah. Okay. Sure. Hey, Glenn. On the first part of your question, I would say, broadly speaking, New Jersey at this point is a net neutral. What you'll see as New Jersey kicks in with a, I'd say, at least equally attractive profit profile to Pennsylvania is that's what's really going to continue to drive our margins upward through this year. We started selling some in Q4 that's in our numbers, and that offsets some of the startup costs, and it's broadly neutral, I'd say, in the grand scheme. Then for the second part of your question, I think I kind of answered it, which is with New Jersey kicking in throughout the year and will become a very material part of our business with a profit profile at or better than Pennsylvania over time, given pricing differences as wholesale in the market, that should continue. Then I think the other part you alluded to is really starving the business. We're not starving the business. We just have, I think, a unique business model with the depth and the scale that gives us the margin profile that we have. Then we continue to invest in our capabilities and in corporate areas and other SG&A-related areas as we feel the need to build out capabilities over time. Yeah, as you see in this quarter, we grew our SG&A 10%, but we continue to grow revenues at multiples of that rate, and we continue to plan to operate with that cost consciousness over time, but making sure we don't starve the business. Great. Thanks, Keith. Sorry, go ahead, Jason. Sorry, Glenn. I was just going to add one thing more just from a qualitative perspective, I guess. I think part of the reason that our profitability margins are so good or are near the high end of the sector is partly, in my mind, because we are a lot newer than a lot of the other companies, a lot of our competitors. We've built up less infrastructure and less people over time. I find sometimes when businesses are around for a long time, there might be some people still there that wouldn't have been there if the company was just starting more from scratch. I think that that's not really a quantitative answer, but I think that that's part of it. We just haven't needed and haven't built up the sort of the staffing levels that some of the other operators have because we're newer. Yeah. Great. Thanks. That's a good color there. Just moving on to Maryland, just can you talk about what kind of expansion plans you talked about some investment in 2021 that likely contributes in 2022. Can you just give us a sense of what you're thinking there? Sure. I think that'd be a great question for Greg Rochlin to answer. Sure. Thanks, JW. Hey, Glenn. We're looking forward to getting our license through Maryland. We're on the docket for late April, and once we have that in hand, our plans are to take advantage of the availability to expand the facility pretty dramatically. We have some very nice plans. We've hired a very strong GM there. We're really looking forward to the Maryland market. As somebody that lives in Baltimore, it's going to be very nice to be doing business in my home state. Yeah. Greg's been pretty much every week from the day that we acquired Ilera, Greg has been asking me, when are we getting a Maryland asset? This was definitely partly, I don't want to say a gift, but I was very excited for us to be able to bring this home for Greg. Have something in his backyard as opposed to driving four hours out to Pennsylvania. Right. All right. Thanks. Maybe I missed it. Last thing for me would just be on Canada. Did you say if it was profitable and to what level, and it improved from last quarter? I might've missed that, but that's it for me. Sure. Keith? Yeah. We continue to progress in Canada. We don't break out those details, but we did, I mentioned we had a one-time impairment item on inventory in Canada. Otherwise, we're really happy with the direction things continue to head in Canada. Like Jason mentioned, we have some top-selling SKUs. Our commercial focus and our focused product portfolio is much improved, and our cost structure is now aligned with all the work that we did last year, or yes, in 2020. The path forward, like I mentioned in my guidance comments, we have expectations for Canada to continue to progress both on top-line growth and on having a profitable business through 2021. Thank you. The next question comes from Andrew Partheniou at Stifel GMP. Please go ahead. Hi, thanks for taking my questions, and congrats on the good guidance here. If I could just touch on the CEO change. Could you talk a little bit about, in terms of management style and culture, if you could give a little bit more color on what were the differences there? When you are looking for your new CEO, what exactly are you going to be looking for in terms of management style or qualities? What are your top criteria in choosing a new CEO? Any more color that you can provide would be useful. Sure, Andrew. I would say, I'd rather not get into the differences in management style or culture, because then it's going to seem like I'm saying that what me and the board preferred was sort of the right way, and what Jason's view was of how to deal with that was the wrong way. I'd rather not get much deeper into that. In terms of the candidates that we're evaluating, we'd like to find somebody that has experience guiding large consumer companies through extremely high periods of growth. It would be somebody with CPG experience, somebody with overall large company experience, and somebody to really be complementary to the greater executive team that we have right now. Thanks for that additional color, cognizant you can only provide so much on today's call. In terms of the 2021 guidance, you already talked about how New Jersey REC could provide upside. Could you talk about your production now? Are you guys selling everything you can produce? If you are, when rec hits, how exactly do you see that demand curve changing or the sales curve, rather, changing? Could you see a significant increase in prices? I'm just curious, if things are running on all cylinders now, when rec hits and that strong demand hits, how should we think about sales changing or margins moving? Sure. I think in terms of as we look at medical versus rec, our view is that we are going to sell everything that we cultivate and manufacture, whether it's medical or rec. It's really a matter of the difference that we're going to see, once adult use kicks in, is going to be retail sales. Those sales should increase significantly under adult use versus rec. That's really going to be the big driver. Essentially, it's going to be us selling more of our wholesale product through our own stores, where obviously we're going to be booking a much higher amount of revenues if we sell them all the way through, essentially seed to sale. I'd like to throw it over to Greg in terms of the first part of your question about where we are now in terms of production and selling through everything that we can make. Sure. Thanks, Jay. Andrew, great question. We've quite a few different levers that we're looking to pull for when adult use. One of the things, as Jay and Keith mentioned earlier, we are continuing to expand our existing facilities in Pennsylvania. We have some expansion plans in New Jersey as well. Of course, as we just discussed, Maryland. That really is in preparation for adult use in the States when that is available. We also have a very strong culture of innovation, where we are continually coming out with new products and new forms. One of the example of that is our Prism line, which is, of course, our concentrate line in New Jersey. We're looking forward to taking advantage of the existing Valhalla brand and expanding our edibles lines. All of which help on our high profit margin items. We do believe that we are setting ourselves up for a really nice bump when adult use happens. As Keith and Jason mentioned, this is not in any of our guidance or any of our numbers currently, but we do expect to see a nice bump when those markets do really flip to adult use. Thanks for that. Just maybe one more on a housekeeping item. Could you just confirm the exchange rate that you guys are using when converting your 2021 guidance to USD? Yeah Andrew, Hi. Keith. Yes, 1.3082. We have a slide on that, I think was up on the screen for those that were looking when I was talking through it, and we also have it clearly footnoted in o ur press release and the thinking there is just that we introduced our guidance in Canadian dollars back on our Q3 conference call. That was the exchange rate. That was the right rate to convert into U.S. dollars. Yeah. Just to add to that a bit, Andrew. The vast majority of our business is in U.S. dollars, well over 90%. When we do our own forecasts, we forecast them in U.S. dollars, and then we convert it. Say in November, when we give this guidance, we converted it to Canadian dollars. The way that we're booking all of these sales is in U.S. dollars. In our view, our real guidance was what we had based it off of at that conversion rate. It's just a matter of the way we're reporting it, but we actually don't have any FX risk as it relates to the business there. Thank you. The next question comes from Evan Greenberg at Needham. Please go ahead. Hi, this is Evan Greenberg. Thanks for taking my questions. First one is going back to the Pennsylvania expansion. You said it's already underway, I believe. That facility, I believe it can go up to 30%. Is that on facility size or canopy square footage? When can you see that starting to hit revenue? Thanks. I'm sorry, Evan, you were breaking up just a little bit. Yeah. Could you please repeat that question? Yeah. Is this better? Yes. Let's see. It was the cultivation expansion. I believe you have another 30% in Pennsylvania. I think you said that's currently underway. Is that facility a 30% increase on facility size or canopy square footage, and when could you see that come online? That is actually on, do you want me to take that, Jay? Yes, absolutely. Evan, thanks for the question. The extension, from current footprint, part of what we're doing is renovating our existing greenhouse into an indoor facility. We will be able to not only increase the square footage, but increase the grams per foot, and our yields. All the expansions will be completed this year, and we'll really hit our revenue very late this year or early next year. Again, this is not in our 2021 guidance, it's a 2022 event from that perspective. Okay, got you. That's helpful. My second question is, some other operators on the call have mentioned weather-related issues in 1Q, particularly on the East Coast in February due to cold weather and snow. Have you guys seen a notable impact from that, or is it not really that material so far from what you've seen? I apologize. We have a little bit of a tough connection. Could you repeat? Yeah. Yeah. I heard the question, Greg. I can answer that. This is Keith. We really have not seen a notable impact, really materially impacting anything from weather in the first quarter. Okay, great. Yeah. That's it for me. Thanks. Thank you. The next question comes from Noel Atkinson at Clarus Securities. Please go ahead. Good morning, guys. Really well done in Q4. Thanks for taking our questions. First off, could you talk a bit about the potential financial benefits to TerrAscend if the SAFE Banking Act passes and there's termination of 280E? Should I take that? Sure. JW? Yeah. Okay. Yeah, go for it. There's two parts to that question and a lot of debate about it, right? SAFE Banking, as I think we all know, has multiple potential benefits, cost of capital being one. It's hard to handicap exactly how much that could be worth. I think it's clear what we borrow at and what our cost of capital is and, that could come down from low to mid-teens down into the single digits and be worth several million dollars on that front. There's banking fees that are maybe less material, but they can come down as well. 280E, the simple math there is, look at our SG&A expenses and take 30% of that, and that's how much savings we can get on a recurring basis. Quite a bit of unlocked value there, potentially into our market cap. Hopefully that answers the question. Okay, great. Are you guys able to give us a sort of a relative production capacity of what you have in New Jersey versus Pennsylvania currently? Sure. Greg, did you hear that? Yeah, sure. Of course, yeah. Okay. Right now we have approximately 2/3 the capacity in Jersey that we have in PA, before the expansions in PA that we were just discussing. We have a really good amount of capacity between the indoor and the greenhouse, and really looking forward to that program continuing expansion and us opening our second and third dispensaries to really be able to get the quality cannabis into the hands of the patients in New Jersey that really need it. Then, of course, moving into the adult use market. We're extraordinarily bullish on New Jersey. Great. Thanks for that. Finally, Jason, maybe you could talk a bit about what your M&A pipeline looks like in general terms right now. It seems like there's very busy activity along the East Coast in Pennsylvania, Massachusetts, Florida, and what's your outlook there? Sure. Yes, we are definitely looking at many things. We hope to be able to announce some things in the next two months. There's definitely a lot of opportunities. Even though prices have gone up some, I think that that's one of the areas where we excel, is finding, not necessarily going after the assets that everybody knows of, but sort of turning over a lot more rocks and finding great assets and great operators on a single state level. Very often, you're able to get those assets. If you're willing to cobble them together, you can get better assets at better prices than just looking at the same ones that everybody else is looking at, or the ones that bankers are showing around. I think our pipeline is really strong there, and they're never done until they're done, obviously. We would hope to be announcing at least one deal in the coming months. Thank you. The next question comes from Andrew Semple at Echelon Capital Markets. Please go ahead. Hello, congrats on the quarter. Thank you. Just wanted to ask on the decision to raise the 2021 guidance so earlier in the year. Was there any new information that arose in Q1 that kind of supported your confidence in the guidance? Perhaps maybe some of your businesses may be ramping more quickly than previously expected, or maybe you're more confident in being able to deliver on New Jersey. If you could speak to some of those factors, that would be appreciated. Sure. Keith, would you like to take that? Hi, Andrew. I'd say there's really two main elements there. One is the continued momentum in Pennsylvania that just continues to surpass our internal expectations. As Jason alluded to earlier, we continue to beat our forecasts internally. The second major component, Andrew, you alluded to, which is being granted the processing license in New Jersey was sort of the final step in unlocking the full potential and capability of our business in New Jersey for the rest of the year. I'd say those two were the main ingredients into us being confident in raising the guidance. Great. That's very helpful. You also called out the strong same-store sales growth in Pennsylvania, in your prepared remarks. I'm just wondering, how important was the expansion to your production facilities that you underwent within the fourth quarter, to ensure adequate supply for your own dispensaries? Was that a factor to supporting retail store growth, or were there other primary factors behind the increase in retail sales? Greg? Great question. It's a combination of both. We saw strong demand. There's quite a bit more patients that have actually entered the market in Pennsylvania. We're currently supplying 100% of the market, every dispensary in the state, and we continue to do so. We have great partnerships where we supply some of the other MSOs, and they supply us as well, as well as the local suppliers in that state. A lot of it had to do with just overall growth in Pennsylvania, the patient growth. It's been a really strong state, obviously, and we're poised to really be able to leverage that. Luckily, our products in our stores, and our incredible staff have done just a wonderful job, especially during the pandemic, in an extremely difficult time to really pivot to, whether it was drive-through, curbside, and just making sure that we met the customers and the patients where they wanted to be so that we were continuing to be best in class from a service perspective as well as the quality of the product. It was a confluence of all those things that really allowed us to experience that impressive growth. That's great. Another quick one, if I may. Just what you're seeing on the ground in New Jersey, has there been any change to the supply-demand dynamics in that state? How do you see that kind of evolving over the course of 2021? Yeah, we see our experience in Pennsylvania really serving us extremely well in New Jersey. There is still a huge demand-supply imbalance as you're probably very aware, where there is much more demand than supply. As that program continues to ramp up, we're fully expecting to see that continue for the foreseeable future. Again, it is one of the reasons that we're so focused on delivering high-quality products in a whole bunch of different formats as the patients would like, through our New Jersey facility. One of the reasons we're, again, looking to continue to expand, to be able to meet as well as we can, the continued and growing demand in New Jersey as well as, of course, Pennsylvania and then Maryland. Thank you. Next question comes from Clarke Murphy at Craig-Hallum Capital Group. Please go ahead. Hey, guys. This is Clarke Murphy on for Eric Des Lauriers. First wanted to just extend my congratulations on another great quarter and a great guide. It's really impressive results. Kind of switching to my questions. Yeah, no problem. Moving over to California. We've noticed that obviously, the illicit market is still really strong. A lot of retailers have been continuously hit by COVID-19. Just kind of trying to understand any trends that you guys have seen in the stores as we exit the lockdown here, both on the store operational side and kind of how consumer behavior is evolving. Jason, you want me to take that? Yeah. Okay. That'd be great. Yep. Okay. Hi, Clarke. I think it's no surprise that back earlier in 2020, COVID impacted various areas. For us, for our business, it impacted our stores in California, in the San Francisco area. Once we kind of found a new level of sales, they've remained relatively stable at that level. If we were to compare kind of quarter by quarter in 2020, even into this year, sales have been at a similar level. Slowly here, as things are unfolding across the country and restrictions are becoming unlocked, we're seeing some gradual improvements, in particular in our two new stores in Berkeley and Capitola. Certainly not to the levels that we expect longer term once, for example, college students are back on campus in Berkeley and so forth. We remain cautious, but we plan that over time this year, into the summer and into the back half of the year, we'll see improvements across the stores there. Yeah. Got it. Oh, I'm sorry. Yeah. Sorry. The only thing I would add to that is, we absorbed the weakness over the last year or so in California. I think that in terms of our profitability last year, it's a testament to, A, the fact that we acted quickly and were able to control costs in California, but also the fact that our East Coast operations were so strong that they were able to more than make up for any of that slack in California. Going forward, I was just thinking last night, watching on the news what's happening in Miami and all these huge crowds and everybody's sort of itching to come back to the cities. I think that it sort of popped into my head that is what we may have in store for us in San Francisco. The fact is, our three existing stores were in downtown San Francisco, and a large percentage of our customers were either commuters or tourists. Most of them have not been in the city for about a year. They will come back. Hopefully, they're going to be coming back in the coming months. That's another area of potential upside, because we have not really modeled a strong resurgence in California, but it's certainly within the realm of possibility that could happen. Got it. That's really helpful color. kind of just switching over to your CapEx plans for 2021. Just any color you guys could give there in terms of what CapEx is looking like and in what markets you guys will be putting that into. I'm assuming mostly New Jersey, Pennsylvania, Maryland, but any color you could give there would be helpful. Sure. Keith? Yeah, sure. You're right, Clarke. It's really focused in those three markets, and you heard us talking about expansion plans in each. That's where the CapEx will be spent in 2021. Those investments will lay the groundwork for continued strong growth we expect in 2022. If I were to frame it for you, I would say more or less at similar levels to spending in the full year 2020. That's to put a frame around it. Hopefully that helps. Yeah, no, that's great color. Just lastly for me, going back to the management transition here and business continuity, just looking to see if you guys expect, or if we should expect any involvement from Canopy or Constellation in this process? In terms of management, I would say no. They know everything that's been going on, and they continually reaffirm their support for us. Mike Lee from Canopy Growth isn't coming over anytime soon to work at TerrAscend. We have a great relationship with the company. We talk to them multiple times per week, and I think that the relationship is only going to continue to grow over time. Thank you. There are no further questions. I will now turn the call back over for closing comments. Okay. Thank you. Keith, did you have the closing comments, or did you want me to close it out? Nothing formal, Jason. Go ahead. Sure. Yeah. Thank you, everybody, for being on the call today. It's gratifying to see the numbers of people joining and asking questions versus just a year ago. I think back to just about a year ago, or less than a year ago, we actually had our first conference call ever, and I think that this business has come a really long way from many different perspectives in that time since then. We look forward to sharing our progress going forward. You'll hear from us soon. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and we ask that you please disconnect your lines.