Tilray Inc. has reduced losses and increased revenue in the last three months of 2020 because it was willing to merge with fellow Canadian marijuana company Aphria Inc.
Tilray TLRY,
reported a loss of $ 3 million, or 2 cents per share, after reporting losses of more than $ 200 million in the same quarter a year ago. The company said it was profitable on an adjusted Ebitda basis, earning $ 2.2 million by benchmark.
Tilray reported total sales of $ 56.6 million or $ 50.7 million when calculating excise tax, after earning $ 46.9 million or $ 42.5 million after tax a year earlier. . According to FactSet, analysts forecast an average loss of 14 cents per share on sales of $ 56 million, with a smaller forecast for adjusted Ebitda of $ 300,000.
For the full year, Tilray’s sales rose to $ 210.5 million in 2020 from $ 167 million in 2019 excluding excise duty, while losses decreased to $ 271.1 million, or $ 2.15 per share, from $ 321 , 2 million or $ 3.20 per share. Tilray reported an adjusted loss of Ebitda of $ 30.3 million in 2020, an improvement of an adjusted loss of $ 89.8 million in 2019.
“These results have required hard work and dedication, and I appreciate everything the Tilray team has done during 2020 to transform our business,” Brendan Kennedy, CEO of Tilray, said in a statement. “We are now looking forward to the beginning of the next chapter in our business journey.”
Tilray and Aphria APHA,
they have agreed to merge into an agreement that they believe will create the largest cannabis company in the world through revenue, with the Tilray name and ticket left after the agreement is completed. Tilray said in the release on Wednesday that the deal should close in the second quarter.
For more information: to take advantage of the planned merger, says analyst Aphria for sale
Tilray shares jumped more than 10% after trading on Wednesday, after the share dipped 9% in the regular session. Shares have more than tripled in the past three months, rising 337% as expectations for the merger, as well as hopes for federal marijuana legalization in the US, have dropped pot stocks.
Aphria shares also rose in late trading, rising more than 8% after rising more than 227% over the past three months. For comparison, the S&P 500 index SPX,
achieved 9% in that time.