Font size
Tilray sees a growing marijuana business after the combination with Aphria.
Credit to Tilray
Pot grower
Tilray
reported a smaller net loss than analysts expected. Marijuana stocks hit after-hours trading on Wednesday.
Tilray (ticker: TLRY) reported a fourth-quarter net loss of $ 2.9 million, or two cents a share. Wall Street’s consensus estimate called for a net loss of 14 cents per share, according to FactSet. The company’s revenues of $ 56.6 million exceeded the estimates of $ 56 million.
The company’s sales of recreational pots grew 49% year-over-year to $ 25.3 million. International sales of medical products were up 191% to $ 11.7 million, while sales of medical products in Canada were up 26% to $ 4.2 million. Total cannabis income, excluding $ 15.3 million in the hemp category, was $ 41.2 million.
Tilray stock has been up and down over the past week after users started posting about marijuana stocks on Reddit’s WallStreetBets forum. Tilray is expected to partner with
Aphria
(APHA) in the second quarter. Under the announced terms of the deal, each Aphria share would be traded for 0.84 share of the new Tilray.
“Amid an acceleration of regulatory changes and an increasingly favorable political environment, our proposed merger with Aphria will position the combined company as a global leader with the lowest manufacturing costs, leading brands, a well-developed distribution network and unique partnerships,” the current CEO of TIlray, Brendan Kennedy, said in the press release. Aphria CEO Irwin Simon becomes CEO of the combined entity, while Kennedy becomes Chairman.
Kennedy pointed to more than 100 million Canadian dollars (US $ 78.7 million) in anticipated pre-tax synergies for the Tilray merger. “The aggregate impact of these value drivers gives confidence that the ‘new’ Tilray will generate significant value for shareholders,” he added.
Tilray stock rose 11% in non-business hours trading on Wednesday, while Aphria stock rose 7.7%.
Write to Connor Smith at [email protected]