Tilray Inc. reduced losses and increased revenues in the last three months of 2020 as it prepared to merge with Canadian marijuana company Aphria Inc.
Tilray TLRY,
reported a loss of $ 3 million or 2 cents a share, after reporting losses of more than $ 200 million in the same quarter a year ago. The company said it is profitable on an adjusted Ebitda basis, producing $ 2.2 million through this amount.
Tilray reported total sales of $ 56.6 million, or $ 50.7 million in excise accounting, after recording revenue of $ 46.9 million a year earlier or $ 42.5 million after excise duty. Analysts predicted an average loss of 14 cents per share from $ 56 million in sales, according to FactSet, with a lower projection for adjusted Ebitda of $ 300,000.
For the full year, Tilray sales increased to $ 210.5 million in 2020 from $ 167 million in 2019 excluding excise taxes, while losses were reduced to $ 271.1 million, or $ 2.15 per share, from $ 321.2 million or $ 3.20 per share. Tilray reported an adjusted Ebitda loss of $ 30.3 million in 2020, an improvement over an adjusted loss of $ 89.8 million in 2019.
“These results have required a lot of work and dedication and I sincerely appreciate everything the Tilray team has done to transform our business in 2020,” Brendan Kennedy, Tilray’s chief executive, said in a statement. “We look forward to the beginning of the next chapter in our corporate journey.”
Tilray and Aphria APHA,
they agreed to merge into an agreement that is said to create the world’s largest revenue-based cannabis company, with Tilray’s name and brand remaining after the transaction. Tilray said in a statement on Wednesday that the transaction should be completed in the second quarter.
For more: To take advantage of the planned merger of the pot, analyst says to buy Aphria
Tilray shares rose more than 10% in trading after Wednesday, after shares rose 9% in the regular session. Shares have more than quadrupled in the past three months, gaining 337% as expectations for the merger, as well as hopes for federal legalization of marijuana in the United States, have reduced pot stocks.
Aphria shares also gained in late trading, adding over 8% after rising by over 227% in the last three months. For comparison, the S&P 500 SPX index,
gained 9% in that time.