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Tilray sees a growing marijuana company after combining with Aphria.
Tilray’s kindness
Pot grower
Tilray
reported a lower net loss than analysts expected. The marijuana stock appeared on Wednesday after trading after hours.
Tilray (ticker: TLRY) reported a fourth-quarter net loss of $ 2.9 million, or two cents a share. According to consensual estimates, Wall Street demanded a net loss of 14 cents per share. The company’s $ 56.6 million sales removed estimates for $ 56 million.
The company’s recreational craft sales rose 49 percent 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 revenues, which do not include $ 15.3 million in hemp, reached $ 41.2 million.
Tilray shares have risen up and down in the past week after users of the RedSit WallStreetBets forum started posting about marijuana stocks. Tilray is expected to close a combination with
Afri
(APHA) in the second quarter. According to the announced terms of the transaction, each Aphria share will be exchanged for 0.84 shares of the new Tilray.
“Against the backdrop of accelerating regulatory change and an increasingly favorable political environment, our proposed merger with Aphria will position the combined company as a global leader with the lowest production cost, top brands, a good distribution network. developed and unique partnerships, ”current TIlray CEO Brendan Kennedy said in the revenue statement. Aphria CEO Irwin Simon will become CEO of the combined entity, while Kennedy will become president.
Kennedy pointed to more than C $ 100 million (US $ 78.7 million) in pre-tax synergies for Tilray after the merger. “The aggregate impact of these value factors gives confidence that the ‘new’ Tilray will generate significant shareholder value,” he added.
Shares of Tilray rose 11% in trading on Wednesday, while shares of Aphria rose 7.7 percent.
Write to Connor Smith at [email protected]