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Tilray sees a growing marijuana company after merging with Aphria.
Courtesy of Tilray
Pot cultivator
Tilray
reported a lower net loss than analysts expected. Marijuana shares appeared Wednesday in the off-hours trading.
Tilray (ticker: TLRY) reported a fourth-quarter net loss of $ 2.9 million, or two cents a share. According to FactSet, the Wall Street consensus estimate called for a net loss of 14 cents per share. The company’s sales of $ 56.6 million reduced estimates by $ 56 million.
The company’s recreational pot sales grew 49% year-over-year, to $ 25.3 million. International medical sales rose 191% to $ 11.7 million, while medical sales in Canada rose 26% to $ 4.2 million. Total cannabis revenue, which does not include $ 15.3 million in the hemp category, reached $ 41.2 million.
Tilray shares have risen and fallen last week after users of Reddit’s WallStreetBets forum began posting about marijuana stocks. Tilray is expected to close a combination with
Afria
(APHA) in the second quarter. Under the announced terms of the deal, each share of Aphria would be exchanged for one share of 0.84 of the new Tilray.
“Amid accelerating regulatory changes and an increasingly favorable political environment, our proposed merger with Aphria will position the combined company as a world leader with the lowest cost of production, leading brands, a distribution network well – developed and unique alliances “. said Brendan Kennedy, current CEO of TIlray, in the earnings statement. Aphria CEO Irwin Simon will become CEO of the combined entity, while Kennedy will be chairman.
Kennedy noted more than C $ 100 million (US $ 78.7 million) in pre-tax synergies for Tilray after the merger. “The aggregate impact of these value engines provides confidence that the‘ new ’Tilray will generate significant value for shareholders,” he added.
Tilray shares rose 11% in trading outside of Wednesday hours, while Aphria shares rose 7.7%.
Write to Connor Smith at [email protected]