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Tilray sees a growing marijuana business combined with Aphria.
Thanks to Tilray
Potter
Tilray
reported a slimmer net loss than analysts had expected. The marijuana stock traded after hours Wednesday.
Tilray (ticker: TLRY) reported a net loss of $ 2.9 million in the fourth quarter or two cents per share. According to FactSet, Wall Street’s consensus estimate required a net loss of 14 cents per share. The company’s sales of $ 56.6 million lowered estimates to $ 56 million.
The company’s sales for recreational pots grew 49% year-on-year to $ 25.3 million. International medical sales increased by 191% to $ 11.7 million, while medical sales in Canada increased by 26% to $ 4.2 million. The total cannabis revenue, which does not include $ 15.3 million in the hemp category, is $ 41.2 million.
Tilray shares have been swinging up and down over the past week after users started posting on marijuana shares on Reddit’s WallStreetBets forum. Tilray is expected to combine with
Africa
(APHA) in the second quarter. Under the announced terms of the agreement, each Aphria share would be exchanged for 0.84 share of the new Tilray.
“Amid an acceleration of regulatory change and an increasingly favorable political environment, our proposed merger with Aphria will position the combined company as a world leader with the lowest production costs, leading brands, a well-developed distribution network and unique partnerships,” current TIlray CEO Brendan Kennedy said in the revenue release. Irwin Simon, CEO of Aphria, becomes CEO of the combined entity, while Kennedy becomes chairman.
Kennedy pointed to more than 100 million Canadian dollars (78.7 million US $) in expected synergies before tax for the post-merger Tilray. “The overall impact of these value drivers provides confidence that the ‘new’ Tilray will generate significant value for shareholders,” he added.
Tilray shares rose 11% in overnight trading on Wednesday, while Aphria shares rose 7.7%.
Write to Connor Smith at [email protected]