The British Columbia-based firm fell over 11 percent in aftermarket trading on Monday (March 2) after telling investors it took in an 8.2 percent decrease in total revenue quarter-over-quarter to US$46.9 million. The firm opened at US$13.01 on Tuesday (March 3).
Net losses for the quarter were at US$219.1 million, or US$2.14 per share, and were attributed to growth initiatives, international expansion and the acquisitions of Manitoba Harvest and Natura Naturals Holdings to its portfolio.
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International medical cannabis sales were down from the previous reporting period as well, falling to US$4 million from US$5.7 million in Q3.
Tilray CEO Brendan Kennedy said the year offered plenty of firsts for the firm and a variety of challenges during an earnings call after market close on Monday.
“I have been an investor and operator in the cannabis industry for nearly a decade now. And I believe that we are still in the very early days of this industry’s growth trajectory,” he added.
Kennedy went on to reiterate the problems currently affecting the Canadian cannabis market, including the slow growth of the legal market due to a lack of retail locations and an active and robust illicit sector.
Despite any short term challenges, Kennedy said he remains bullish on the overall sector for the medium and long-term.
Outside of Canada, Kennedy said Tilray plans to focus even more on its international exploits, including increasing production capacity at its facility in Portugal by 340 percent and doubling down on building cannabidiol (CBD) brands in the US.
In the face of sector-wide issues, Mark Castaneda, the firm’s CFO, said the company felt it was prudent to strengthen its balance sheet by taking non-cash impairment charges related to uncertainty in the US CBD market.
Castaneda added that Tilray plans on making non-cash valuation adjustments addressing its supply for cannabis extracts.
Bulk cannabis sales for Tilray were also down 44 percent year-over-year to US$3.9 million, and Kennedy said that bulk sales will be “somewhat non-existent” moving forward in 2020.
Like the rest of the cannabis industry, Tilray has struggled in its pursuit of profitability amid a volatile capital market.
Last month, Tilray told media outlets that it was cutting 10 percent of its global staff, joining the likes of fellow names in the marijuana space The Supreme Cannabis Company (TSX:FIRE,OTCQX:SPRWF) and Aurora Cannabis (NYSE:ACB,TSX:ACB), which have also made recent cuts to their job forces as they look to optimize efficiency.
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Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.
The 64 th storefront in Florida offers the largest inventory of medical cannabis products in the state
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today the opening of a brand-new Florida dispensary, the Company’s 66th nationwide. The new dispensary will be the first location in Punta Gorda and third in Charlotte County to bring the Company’s wide-ranging catalog of medical cannabis products directly to patients.
Aurora Cannabis Announces Filing of Preliminary Base Shelf Prospectus and Provides Update on Balance Sheet Strength
- Existing At-The-Market (ATM) program now complete
- New Preliminary Base Shelf Prospectus Has Been Filed
- Current Cash Position is Approximately $272 million
NYSE | TSX: ACB
Aurora Cannabis Inc. (the ” Company ” or ” Aurora “) (NYSE: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, today announced it has completed the previously filed At-The-Market (“ATM”) program. Because of this, the Company has filed a new preliminary short form base shelf prospectus (the “Shelf Prospectus”) with securities regulators in each of the provinces of Canada except Quebec and a corresponding shelf registration statement on Form F–10 (the “Registration Statement”) with the United States Securities and Exchange Commission (the “SEC”).
Better Plant Sciences Inc. (CSE: PLNT) (OTCQB: VEGGF) (FSE: YG3) (“Better Plant”) or (the “Company”) is pleased to announce that its majority owned subsidiary NeonMind Biosciences (“NeonMind”) has completed an initial production run of all four of its Ayurvedic, functional mushroom coffees.
Inaugural runs of the award-winning and new white-label brands will allow the infused beverage expert to move ahead quickly with commercialization plans
Emerging leader in infused cannabis beverages, BevCanna Enterprises Inc. (CSE:BEV) (OTCQB:BVNNF) (FSE:7BC) (“BevCanna” or the “Company”) is pleased to announce that it has successfully completed the R&D and trial production runs of its exclusively licenced award winning line of Keef Beverages and the white-label beverages the Company is producing for State B Beverages.