Tilray Archives - Green Market Report

Debra BorchardtDebra BorchardtFebruary 18, 2021
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Tilray, Inc. (Nasdaq: TLRY) reported financial results for the full fiscal year and fourth quarter ended December 31, 202 following the close of the market on Wednesday.
The company said that total revenue increased 20.5% to $56.6 million versus the fourth quarter of 2019. Cannabis segment revenue increased 46% to $41.2 million, mainly driven by the acceleration of International Medical sales (+191%) and Canadian Adult-Use sales (+49%). Canadian medical sales grew 26% and there were no bulk sales to other licensed producers.
The company also delivered a net loss of $(3.0) million, or $(0.02) per share versus the net loss of $(219.8) million, or $(2.14) per share, in the fourth quarter of 2019 and a net loss of $(2.3) million, or $(0.02) per share in the third quarter of 2020. With sales jumping about 46%, driven by international demand, which increased by 191%, Tilray posted a better-than-expected loss of 2 cents per share, which stands in stark contrast to the $2.14 loss at the same time last year.”
Brenda O’Farrell, senior analyst at Investing.com said, “With Tilray poised to become the biggest cannabis company in the world since announcing its merger with Aphria in December, all eyes in the sector were on the company’s fourth-quarter earnings unveiled after the close on Wednesday. And the company did not disappoint. In fact, it offered a stellar performance, beating analyst estimates, while showcasing its international reach.”
The company said that the average cannabis net selling price per gram increased to $5.97(C$7.99) compared to $1.88 (C$2.52) in the fourth quarter of 2019 and decreased from $6.15 (C$8.15) in the third quarter of 2020. Tilray attributed the increase versus 2019 to a continued shift in distribution channels and product mix, including growth in International Medical sales, a shift in sales to higher potency and higher-priced products in the Adult-Use market, and the continued growth of Cannabis 2.0 products in Canada. The decrease from the third quarter of 2020 was due to the accelerated sales growth of cannabis flower products in the Canadian Adult-Use channel during the fourth quarter of 2020.
“Over the course of 2020, and despite COVID-19 related challenges, we transformed and strengthened Tilray, delivered solid full year results, significantly reduced net loss, and achieved our stated goal of delivering break even or positive Adjusted EBITDA in Q4 2020,” said Brendan Kennedy, Tilray’s Chief Executive Officer. “We did so by generating meaningful revenue growth across our core businesses, particularly international medical and Canadian adult-use in Q4, and reducing costs by $57 million on an annualized basis compared to Q4 of 2019. As a result, we now operate with a more focused, efficient and competitive cost structure. We also strengthened our balance sheet and positioned Tilray for growth and success in the future in combination with Aphria.”

Full Year 2020

The company reported that total revenue increased 26% to $210.5 (C$281.9) million during 2020 from $167.0 million in 2019. The increase was driven by $26.5 million or 25% growth in the Cannabis segment, and $17.0 million or 28% growth in the Hemp segment. The Hemp segment increase was partially due to the timing of the Manitoba Harvest acquisition in 2019 which resulted in 10 months of sales in 2019 compared to 12 months in 2020.

The net loss for the year decreased to $(271.1) million, or $(2.15) per share, compared to $(321.2) million or $(3.20) per share in 2019 largely due to the cost optimization measures undertaken during 2020. “In 2020, we recorded non-cash impairment charges of $61.1 million and $38.4 million of inventory valuation adjustments, as well as a non-cash charge of $100.3 million related to warrant valuations, partially offset by non-cash gains on debt conversion of $(61.1) million.”

O’Farrell went on to say, “As the cannabis sector overall continues to find its footing, one of the big questions the industry is wrestling with is: Is bigger better? Well, Tilray’s results are taking the guesswork out of that query. And investors were quick to notice. Tilray shares shot up more than 10% in after-hours trading. And although one quarter doesn’t make a trend, the winds are in the sector’s sails, as optimism linked to U.S. federal legalization continues to blow.”

Piper Sandler analyst Michael Lavery cut his Tilray rating (TLRY) to neutral from overweight citing the unlikelihood of further upside given the current valuation. The stock was lately trading at $31 far from its 52-week high of $67. Still, the analyst raised his price target from $15 to $26. Lavery said he believes that the merger with Aphria will improve profitability, deal synergies, and lead to an increase in higher-margin international sales. But he expressed concern that it could still be a year or two before marijuana is legally allowed on a federal level in the U.S. “and there is still little visibility on THC’s plan to enter U.S. THC markets.”

 


Debra BorchardtDebra BorchardtDecember 17, 2020
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Stifel analyst Andrew Carter has downgraded Aphria (NASDAQ: APHA) from Buy to Hold and upgraded Tilray (NASDAQ: TLRY) from Sell to Hold following the announcement of the company’s merger. In the merger agreement, Aphria shareholders will receive 0.8381 shares of Tilray’s for each Aphria stock they own. Aphria will own about 62% of the combined company, however, the merged company will supposedly be known under the Tilray name and would trade with the TLRY stock ticker.

He said that the merger with Tilray offers compelling long-term potential but limited near-term upside. He raised the target price from C$8.25 to C$9.90 for Aphria based on the company’s 62% of the new combined company.

“We are taking a positive approach to this merger given the long-term potential. But pursuing this merger attracts scrutiny,” he wrote in his note. “Aphria has successfully achieved a leadership position in the Canadian adult-use market organically, and we question the opportunity cost of capital/management bandwidth for undertaking this acquisition. We believe the shares are likely to remain in a holding pattern over the near-term as investors gain confidence with the combined platform’s long-term potential. Against the incremental contribution, we are reducing our revenue estimates for the distribution business assuming the 1Q21 run-rate of C$82 million as the appropriate run-rate going forward. With our outlook suggesting discount will be a more fulsome percentage of sales, our estimates consider a higher level of excise taxes pressuring both net sales and EBITDA.”

Tilray’s price target was raised to $9.20 from $5. He wrote, “We believe Tilray offers a difficult case for standalone value creation with Tilray not showcasing, in our view, an enduring right-to-win for new market opportunities particularly in the U.S. with the increasing competitiveness of the Canadian market likely challenging the company’s ability to offer a profitable template for investors. We believe Tilray is contending with underappreciated liabilities and liquidity needs that would otherwise challenge the company’s ability to drive investor enthusiasm. But this merger provides Tilray shareholders participation in a platform offering truly impressive growth potential with the initial announcement suggesting a 23% premium to Tilray’s December 15th closing price.”

Carter believes the combined company will generate $890 million in combined 2021 net revenue with cannabis sales approaching $500 million with the combined portfolio offering mid-teens revenue growth and a combined margin profile comparing well with traditional consumer assets (~20% EBITDA margin).

“While we believe the combined platform will offer investors an impressive growth profile and a well-positioned vehicle for capitalizing on the growth of the global cannabis category, we believe the prevailing valuation fully considers the platform’s potential with the focus now on successfully completing a complex integration,” he said in his research report.

 


Debra BorchardtDebra BorchardtDecember 16, 2020
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Aphria (APHA) and Tilray (TLRY) have announced the two companies would be merging. Aphria shareholders will receive 0.8381 shares of Tilray’s for each Aphria stock they own. Aphria will own about 62% of the combined company, however, the merged company will supposedly be known under the Tilray name and would trade with the TLRY stock ticker. Both stocks moved higher on the news, which neither company has commented on.

The combined revenue of the two companies would be approximately $685 million, making it the largest in terms of sales, but the combined market cap is still lower than competitor Canopy Growth (NASDAQ: CGC). Aphria said in a statement that the implied pro forma equity value of the Combined Company is approximately C$5.0 billion (US$3.9 billion), based on the share price of Aphria and Tilray at the close of the market on December 15, 2020. Aphria’s current Chairman and Chief Executive Officer, Irwin D. Simon, will lead the Combined Company as Chairman and Chief Executive Officer. The board of directors will consist of nine members, seven of which, including Mr. Simon, are current Aphria directors and two of which will be from Tilray, including Brendan Kennedy, and one of which is to be designated.

“This is an exciting day for both companies including our 2,500 employees, for the cannabis industry, and for patients and consumers around the world.  We are bringing together two world-class companies that share a culture of innovation, brand development and cultivation to enhance our Canadian, U.S., and international scale as we pursue opportunities for accelerated growth with the strength and flexibility of our balance sheet and access to capital,” said Mr. Simon. “Our highly complementary businesses create a combined company with a leading branded product portfolio, including the most comprehensive Cannabis 2.0 product offerings for patients and consumers, along with significant synergies across our operations in Canada, Europe, and the United States.  Our business combination with Tilray aligns with our strategic focus and emphasis on our highest return priorities as we strive to generate value for all stakeholders.”

Tilray’s Sales Have Been Disappointing

In November, Tilray reported that its total revenue for the third quarter was flat at $51.4 million and up 2.0% sequentially. The company attributed the disappointing results to the discontinuation of bulk sales and a slight decrease in Canada medical sales which caused cannabis segment revenue to fall by 11% to $31.4 million. Total cannabis kilogram equivalents sold decreased 53% to 5,107 kilograms from 10,848 kilograms in the prior year’s third quarter. Adult-Use and International Medical sales grew 26% and 42%, respectively. Excluding the year-over-year impact related to bulk sales, total cannabis revenue increased by 24%. Hemp segment revenue increased 28% to $20.0 million (C$26.5 million).

Mr. Kennedy, Tilray’s Chief Executive Officer added, “We are thrilled to bring together two cannabis industry leaders. At this nascent stage of development and expansion of the global cannabis market, we believe companies with leading geographic scale, product range and brand expertise are most likely to benefit long-term.  By leveraging our combined strengths and capabilities, we expect to be able to meet the needs of consumers more effectively all over the world and advance patient care. With a strong financial profile, low-cost production, leading brands, distribution network and unique partnerships, we believe the Combined Company will be well-positioned to deliver sustainable, attractive returns for stockholders. I look forward to working with Irwin and the Combined Company’s management team to make our consumer products more accessible around the world.”

Aphria’s Position Of Strength

Aphria has been delivering much better results as the company reported in October that its gross revenue was $69.6 million in the first quarter for the fiscal year 2021. This represented strong growth, showing a 23% increase from the prior quarter, as well as the sixth consecutive quarter of growth. The company’s net cannabis revenue totaled $62.5 million, showing a whopping increase of 103% from the same quarter last year. The company reported an adjusted EBITDA of $10.4 million for the cannabis business, representing an 11% increase from the prior quarter.

Aphria’s total net revenue from the first quarter reached $145.7 million, an increase of 16% from last year’s quarter. The company did report a 4% decrease in total net revenue from the prior quarter, however, this is solely due to circumstances and lower distribution revenue stemming from COVID-19, specifically from CC Pharma in Germany. Especially considering the COVID-19 curve balls that every company has had to navigate, Aphria ended the first quarter with a bang. They finished with a strong balance sheet and liquidity; which includes $400 million of cash and cash equivalents to fund the company’s growth, both in Canada and internationally.

Aphria in November said it would enter the U.S. via an agreement to buy craft brewer Sweetwater Brewing Co. for around $300 million. SweetWater is known for beers that use terpenes and hemp flavoring. Aphria said the brand was “closely aligned with a cannabis lifestyle.” Tilray owns Manitoba Harvest, a hemp company that sells products in the U.S. and Canada.

Combined Company

In the Aphria statement, the company said that on a pro forma basis, for the period August to October 2020, the Combined Company would have held a 17.3% retail market share, the largest share held by any single Licensed Producer in Canada and 700 basis points higher than the next closest competitor.  In the United States, Aphria said that the Combined Company will have a strong consumer packaged goods presence and infrastructure with two strategic pillars, including SweetWater, a cannabis lifestyle branded craft brewer, and Manitoba Harvest, a pioneer in branded hemp, CBD and wellness products with access to 17,000 stores in North America.

The combination of Aphria and Tilray is expected to deliver approximately C$100 million of annual pre-tax cost synergies within 24 months of the completion of the transaction. The Combined Company expects to achieve cost synergies in the key areas of cultivation and production, cannabis and product purchasing, sales and marketing, and corporate expenses.

 


StaffStaffNovember 9, 2020
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It’s time for your Daily Hit of cannabis news for November 9, 2020

On the Site

Canopy Growth

Canopy Growth Corporation (NYSE: CGC) reported net revenue of $135.3 million for the second quarter fiscal 2021 ended September 30, 2020, causing the stock to jump in early trading. This was a 77% increase over last year’s fiscal second-quarter revenue of $76.6 million. Still, Canopy delivered a net loss of $96.6 million versus last year’s net income of $242 million for the same time period.

The company also reported a loss per share of ($0.09) which beat the MarketWatch estimate for a loss of ($0.28). The stock was lately trading at $26, an increase of 13%. The company attributed the revenue growth to an increase in Canadian recreational revenue, continued strength in Storz & Bickel vaporizer sales and ThisWorks, and contribution from BioSteel, which was acquired in October 2019 . The net loss was driven by lower other income. Canopy also said that the increase versus the prior year period also benefited from favorable comparison, as Q2 2020 results included a $32.7 million charge for returns, return provisions, and pricing allowances primarily related to restructuring the company’s recreational softgel & oil portfolio.

Tilray

Tilray, Inc. (Nasdaq: TLRY) reported that its total revenue for the third quarter was flat at $51.4 million and up 2.0% sequentially. Net losses fell to  $(2.3) million versus last year’s net loss of $(36.4) million and fell sequentially from $(81.7) million in the second quarter. The most significant driver of the change in net loss during the period was the revaluation of the outstanding warrants associated with the equity offering completed in March. Tilray stock was slightly higher in after-hours trading.

The company attributed the disappointing results on the discontinuation of bulk sales and a slight decrease in Canada medical sales which caused cannabis segment revenue to fall by 11% to $31.4 million. Total cannabis kilogram equivalents sold decreased 53% to 5,107 kilograms from 10,848 kilograms in the prior year’s third quarter. Adult-Use and International Medical sales grew 26% and 42%, respectively. Excluding the year-over-year impact related to bulk sales, total cannabis revenue increased by 24%. Hemp segment revenue increased 28% to $20.0 million (C$26.5 million).

Aurora Cannabis

Canadian-based cannabis company, Aurora Cannabis (NYSE: ACB) reported their Q1 earnings this morning. The results were mixed at best, with shares rising 21% on the potential for cannabis legalization under a Biden administration. Unless otherwise stated, these figures are in Canadian dollars. 

The company’s adjusted gross margin before fair value adjustments on total cannabis net revenue didn’t waver much quarter to quarter, with Aurora Cannabis reporting a 48% adjusted gross margin compared to 50% in Q4 2020. Before fair value adjustments, the company’s adjusted gross margin on cannabis net revenue was 52%. 

Canopy Rivers

Canopy Rivers Inc. (OTC: CNPOF) today released its unaudited condensed interim consolidated financial statements in Canadian dollars and acknowledged taking a $112 million hit for its PharmHouse investment.  The total comprehensive loss for the quarter was $87.0 million. On a positive note, its investment into TerrAscend has appreciated implying an investment value of $214 million.

The company reported that its royalty, interest, and lease income (before provisions for credit losses) was $4.1 million for the quarter. It included income from its various royalty, convertible debenture, and loan agreements, among other items. Other comprehensive income was $23.4 million, net of tax, for the quarter, which included a net increase in the fair value of financial assets of $27.4 million attributed to the positive change in the fair value of the investment in TerrAscend. TerrAscend’s share value increase from $2.87 on June 30, 2020, to $9.75 as of the close of markets on November 6, 2020.

Zynerba

Zynerba Pharmaceuticals, Inc. (NASDAQ:ZYNE) reported a net loss of $9 million for the third quarter ending September 30, 2020, with a basic and diluted net loss per share of $(0.31). This beat the Yahoo Finance average analyst estimate for a loss of ($0.43). Six analysts have a Hold rating on the company, while two give it a Buy rating. The company still does not have a revenue-producing drug, but Zynerba said it has enough money until that time comes.

Planet 13

Planet 13 (CSE:PLTH) (OTCQX:PLNHF) is potentially one of the most well-known dispensaries around. They are incredibly innovative, massive in size, and just all around at the top of the dispensary game. Planet 13 is even more special because currently, they’re only located in Las Vegas, Nevada. For having operations in only one state, they sure do gain a ton of attention!

The cannabis megastore just announced their third consecutive month of generating over $7.5 million in revenue. The company’s October revenue clocked out at $7.6 million, with gross margins above 50%. Planet 13’s figures include sales for the SuperStore, as well as Nevada wholesale. 

In Other News

Schultze Special Purpose Acquisition Corp. (NASDAQ: SAMA, SAMAW, and SAMAU) and Clever Leaves International Inc. announced today that they have amended their definitive agreement, which was entered into on July 25, 2020 and is anticipated to become a NASDAQ-listed public company trading under the ticker symbol “CLVR”.

 Under the amended terms, the initial expected enterprise value has been reduced to $206 million from $255 million and the minimum cash condition for SAMA has been reduced to $26 million from $60 million. Additionally, the cash consideration payable to certain Clever Leaves’ shareholders at closing has been amended, thereby increasing the equity rollover consideration of the transaction to approximately 97% while Schultze Special Purpose Acquisition Sponsor, LLC agreed to restructure its’ equity ownership to better align with the capital retained at closing. In connection with these revised terms, institutional investors have committed over $10 million through a private placement to be funded at closing of the Business Combination. Additionally, select SAMA stockholders have agreed not to redeem their shares held thereby providing a path to over $16 million of additional committed capital and thus having adequate capital to consummate the transaction. When including SAMA’s cash in trust, the parties expect to have over $80 million of cash on its balance sheet following closing.

 


Debra BorchardtDebra BorchardtNovember 9, 2020
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Tilray, Inc. (Nasdaq: TLRY) reported that its total revenue for the third quarter was flat at $51.4 million and up 2.0% sequentially. Net losses fell to  $(2.3) million versus last year’s net loss of $(36.4) million and fell sequentially from $(81.7) million in the second quarter. The most significant driver of the change in net loss during the period was the revaluation of the outstanding warrants associated with the equity offering completed in March. Tilray stock was slightly higher in after-hours trading.

“Our third-quarter results demonstrate the significant progress we have made throughout the organization despite the unprecedented challenges presented by the COVID-19 pandemic. We realized solid year-over-year revenue growth in our core businesses and have achieved a significantly more focused, efficient and competitive cost structure, all of which position Tilray for future success. We look forward to building on these accomplishments and remain focused on our goal of achieving break-even or positive Adjusted EBITDA in the fourth quarter,” said Brendan Kennedy, Tilray’s Chief Executive Officer.

The company attributed the disappointing results on the discontinuation of bulk sales and a slight decrease in Canada medical sales which caused cannabis segment revenue to fall by 11% to $31.4 million. Total cannabis kilogram equivalents sold decreased 53% to 5,107 kilograms from 10,848 kilograms in the prior year’s third quarter. Adult-Use and International Medical sales grew 26% and 42%, respectively. Excluding the year-over-year impact related to bulk sales, total cannabis revenue increased by 24%. Hemp segment revenue increased 28% to $20.0 million (C$26.5 million).

Prices Rose, But So Did Costs

The average cannabis net selling price per gram increased to $6.15 (C$8.15) versus $3.25 (C$4.32) in the third quarter of 2019 and $2.64 (C$3.59) in the second quarter of 2020. The increase was due to a continued shift in distribution channels and product mix, including growth in International Medical sales, a shift in sales to higher potency and higher-priced products in the Adult-Use market, and the continued growth of Cannabis 2.0 products in Canada.

The average cannabis net cost per gram increased to $4.23 (C$5.61) compared to $2.28 (C$3.03) in the third quarter of 2019 and $2.06 (C$2.80) in the second quarter of 2020. The year-over-year increase was the result of lower kilograms sold due to the discontinuation of bulk sales and partly due to increased sales of Cannabis 2.0 products which have higher costs than dried flower.

Outlook

Tilray said it was set to deliver positive or break-even Adjusted EBITDA in the fourth quarter of 2020. The company said that it expects to see continued opportunities to leverage its Kindred partnership structure and focused selling strategy to grow market share and revenues for the Canadian adult market. With regard to its international business, the completion of our Portuguese facility will position Tilray for “first mover” advantage as new international markets legalize medical and/or recreational cannabis. Construction on the Portuguese cultivation facility remains largely on track to be completed by the end of the fourth quarter of 2020 with total costs expected to be less than the original budget of approximately $33.0 million.

On the hemp products, Tilray said it will leverage the plant-based food trends in the United States and broaden our product offerings to include CBD once the FDA provides guidance on a nationwide basis. Cash and cash equivalents totaled $155.2 million at the end of the third quarter 2020


Debra BorchardtDebra BorchardtSeptember 28, 2020
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Tilray, Inc. (NASDAQ: TLRY) announced that Australian researchers have published preliminary results finding that one of the company’s GMP-produced products is showing promise reducing nausea and vomiting for cancer patients undergoing chemotherapy in a clinical trial.

The results were published in the Annals of Oncology which found a significant improvement in the control of chemotherapy-induced nausea and vomiting. A quarter of the patients taking medicinal cannabis experienced no vomiting and nausea, compared to 14 percent of people who took a placebo. The pilot phase of the study ran for two-and-a-half years with 81 participants enrolled. To be included in the study, patients had to have already experienced nausea and vomiting during chemotherapy despite having taken nausea prevention medication.

“The side-effects associated with chemotherapy are some of the primary causes of treatment discontinuation”, says Philippe Lucas, Vice President of Global Patient Research and Access at Tilray, “so improving the control of nausea and vomiting can not only improve the quality of life of patients but by allowing those affected by cancer to complete their treatment it can also potentially save lives.”

While cannabis has been used before as a remedy for chemo nausea, the most prescribed medicine being Marinol, which is owned by the biotech company AbbVie (NASDAQ: ABBV). However, Marinol is a synthetic drug and patients typically quit renewing their prescriptions based on the side effects and general displeasure with the drug.

“Nausea and vomiting are among the most distressing and feared consequences of chemotherapy,” said chief investigator, Peter Grimison, medical oncologist at Chris O’Brien Lifehouse and Associate Professor at the University of Sydney. “These encouraging results indicate medicinal cannabis can help improve quality of life for chemotherapy patients.” Side effects such as sedation, dizziness and drowsiness were rated as moderate to severe in about one-third of people using medicinal cannabis, but these are considered manageable according to the researchers.

“The trial will now move to a larger phase to determine with much more certainty how effective medicinal cannabis is and whether it should be considered for use in routine cancer care,” Professor Grimison said. “The next phase of the trial is ongoing and will recruit an extra 170 people.”

The world’s largest trial of medical cannabis at the time it launched, the CannabisCINV study is a collaboration between Chris O’Brien Lifehouse, the University of Sydney, the NHMRC Clinical Trials Centre and leading New South Wales (NSW) cancer centres. Tilray is supplying the product for the trial, which is being funded by the NSW government.


StaffStaffJuly 6, 2020
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Editors Note: This is a guest post.

Cannabis and its derivative products are all the rage right now. State after state legalizes its recreational use and dispensaries all over the country are making loads of money. The medicinal aspects of the plant are also heavily taken advantage of by big pharmaceutical companies, with new, branded drugs being released with cannabis as their primary component. 

Although Canada is at the forefront of the legalization battle, having fully legalized all uses of the plant back in October 2018, the United States is not lagging behind. One of the better examples of this in Nevada, where after the passing of a bill allowing the sales of recreational pot by any licensed dispensary, free delivery of cannabis in Las Vegas drew so many customers in, that many of these businesses were running out of drivers! 

These developments naturally make investors around the world question whether investing in cannabis-related stocks is worthwhile. The weed market is very young, and therefore highly volatile, and therefore susceptible to many ups and downs in the nearest future. It will take an additional couple of years for it to stabilize, which is something you need to keep in mind when planning out your investments

The general trend seems to be that it will continue to grow, as proven by the continuous passing of legislation in countries around the world, liberalizing the restrictions on the stuff. This allows entrepreneurs and investors alike to get creative with their money and come up with exciting new ways to consume and make use of cannabis. 

Experts predict that by 2022, the marijuana market will reach $32 billion — that leaves plenty of room for improvement and growth, making weed stocks a perfectly viable option for investments. You will find the most powerful and stable publicly traded cannabis companies below. 

Canopy Growth Corporation

This Canadian company is a true cannabis giant — back in 2014, it became the first company of its kind to be publicly traded. Back then, it was listed on the Toronto stock exchange and made its way to the NYSE in May 2018. Canopy became a go-to store for everyone who wanted to buy cannabis online in Canada

Canopy Growth (NYSE:CGC) made the headlines in 2018 when Constellation Brands bought $4 billion worth of their stock. They are an alcohol importer, so you can be sure that there’s a plan of producing branded marijuana-infused beverages in the works. 

Moreover, Canopy was the first Canadian producer to export their dried marijuana to Germany, making it a truly intercontinental corporation. They continue their operations on European soil through a wholly-owned subsidiary that distributes Canopy products to German pharmacies. 

As of recently, Canopy has been aggressively increasing its footprint in the American market, most notably through striking a deal with Acreage Holdings (a US-based major distributor), allowing it to secure a huge market share in the US, by far the largest cannabis market in the world. 

Canopy Growth is by far the most secure option to invest in, as they have proven their global ambitions and increased scope of their operations year after year since its inception back in 2013. 

Tilray 

Similarly to Canopy, Tilray is also one of the largest cannabis-producing corporations in the world. Based in the United States, its scope is even larger than that of Canopy Growth, with Tilray owning subsidiaries all over the globe — they’re exporting to places like Chile and Argentina, but also plenty of European countries, such as Ireland and Switzerland. Tilray has also opened a licensed production facility in Portugal, the only North American company to produce cannabis-based products in the EU. They can be found in pharmacies in most European countries. 

It is also worth noting that while the Asian cannabis market is largely untapped due to extremely strict regulations of the plant in those regions, Tilray has managed to open up limited facilities in South Korea and Japan — as the trend of cannabis laws being liberalized all over the globe continues onto Asia, Tilray will be ready for it, way ahead of other cannabis enterprises

If you need any more convincing of Tilray’s might and the influence it wields over the global cannabis industry, there is no better example of it than the fact that its CEO, Brendan Kennedy has become the first-ever marijuana billionaire, with his net worth being estimated at around $2.4 billion. 

The Choice is yours 

Investing large amounts of money into a volatile market should always be done with extreme caution. This is a move that needs to be thought through. Should you invest in one of the big boys, like Tilray and Canopy Growth, or move your money towards a smaller, but more exciting enterprise, such as the various local dispensary chains that are literally popping up like mushrooms after heavy rainfall? 

The choice belongs to you. As for the industry giants, it might be more reasonable to buy Canopy Growth stock, as it is still less developed than Tilray, and their potential is still largely untapped, making it the more exciting option of the two. 

 

 


StaffStaffJuly 1, 2020
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Editors Note: This is a guest post.

More and more countries decide to legalize cannabis and give entrepreneurs a chance to make money and keep the economy. 

In 2019, the marihuana stocks were supposed to prove their worth on Wall Street by generating steady profits. However, things didn’t go according to the plan. Many investors missed opportunities due to high tax rates and supply issues in the United States and Canada. These obstacles helped the black market to thrive and left marijuana stock investors just heart-broken – no one could predict the government’s roadblocks. 

Despite all these setbacks, some pot stocks still have good market value. Do you want to learn how entrepreneurs legally make money on selling cannabis these days? Just keep reading:

Canopy Growth And Its Bright Start

Canopy Growth Corporation (NYSE: CGC) (also known as Tweed Marijuana) was founded by two friends – Chuck Rifici and Bruce Linton, in 2013. 

In 2019, the company became the largest cannabis company in the world thanks to its value of shares and market capitalization. The company has even survived all challenges in 2019 without losing a single employee. During the crisis, there were 3200 employees in Canopy Growth. 

These days, Canopy Growth is legally selling their products to 16 other countries (Spain, Germany, Australia, Canada, Jamaica, Czech Republic, Chile, etc.). At the end of 2019, the company set up a partnership with a UK-based think-tank called Beckley Foundations, which will allow them to start selling medical cannabis all around the UK as well.

David Klei, the new CEO of Canopy Growth Corporation, says that it is only the beginning of their company. In 2019, they also announced the release of edible cannabis products such as chocolates and beverages. The company might show even more surprises at the end of 2020. Mr. Klei has a point – it is only the beginning.

Curaleaf Holdings and its Cannabis King named Boris 

Curaleaf Holdings (CURLF) is a Canadian company that produces and distributes cannabis-based products around the world. There is one special thing about the company. As the owners of the company state on their website and in numerous interviews, research and advocacy help them to become leaders in the competitive industry.

In 2020, Curaleaf operated more than 57 dispensaries around the US and Canada. No wonder, Boris Jordan, the chairman of Curaleaf, is called a Cannabis King in the American mass media. 

GW Pharmaceuticals 

GW Pharmaceuticals (NASDAQ:GWPH) is a pharmaceutical company based in the UK. It helps to treat patients with multiple sclerosis with the help of natural cannabis. 

In 2018, their cannabis-based products such as Sativex and Epidiolex were approved by the US Food and Drug Administration. We can find their products in London, Prague, and Las Vegas dispensaries

In 2020, the net worth of the company is $3.21 billion. At the moment, the company has its branches in Germany, France, Spain, Italy, and the US. 

Cronos Group

Cronos Group (CRON) is an innovative global cannabinoid company with an office in New York. In 2019, the company received a $2.4 billion equity investment from Altria Group ( the largest producer of tobacco).

Investors consider Cronos Group one of the most cash-rich pot stock in the industry. The company was founded in 2016 and was run by only 2o employees at the beginning. Right now, there are almost 1000 employees in Cronos Group. Mike Gorenstein, CEO of the company, says that they have even more ambitious plans for the future. 

Tilray 

Tilray (TLRY) is another cannabis company that has a great place in the stock market. Tilray is a Canadian pharmaceutical company that has operations in the unites States, New Zeland, Portugal, Australia, Germany, and Latin America. 

All you need to know about Tilray is that it is one of the first medical cannabis producers in North America. 

Once marijuana was legalized in the United States, Tilray was the first cannabis company legally exporting their products to Americans. The company debuted on the Nasqad Stock Market with $17 per share.

In 2018, the price increased to $214 per share. However, the crisis in August 2019 brought Tilray’s founder Brendan Kennedy back to Earth – the price crashed to $29 per share. Despite such a failure, the company is still afloat, with the capital of $1.18 billion. 

The Bottom Line 

The cannabis industry is growing rapidly around the world. We might expect even more companies on the market in the near future. However, at this point, entrepreneurs need more support from the government. 

Politicians might not be interested in helping the pot business. On the other hand, they should be the ones wanting to fight the illegal drug trade. Supporting local cannabis companies will not only help to generate the requisite public revenues and provide jobs but will also help to protect users from poor quality cannabis-based products. 

 


StaffStaffMay 11, 2020
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4min8300

Tilray, Inc.  (Nasdaq: TLRY) delivered it financial results for the first quarter ending March 31, 2020, as revenue increased 126.2% to $52.1 million. The revenue beat analyst estimates by $2.45 million. The losses of $1.73 per share missed  estimates by $1.21

The company said that the growth was driven by cannabis sales, which experienced meaningful increases across all channels with the exception of bulk, and the inclusion of the Manitoba Harvest acquisition for a full quarter in 2020 compared to a partial quarter in the prior year.

Still, the net loss was a staggering $184.1 million, versus last year’s net loss of $29.4 million. While it looked bad, Tilray pointed out that it wasn’t as bad as the fourth quarter’s net loss of $219.1 million, or $2.14 per share, in the fourth quarter of 2019 was largely due to improvements in gross margin in the first quarter of 2020 and the significant impairments recorded in the fourth quarter of 2019.

The company also noted that the net loss was primarily due to the change in the fair value of the warrant liability of $72.0 million related to its registered offering of common stock and warrants, impairment of assets of $29.8 million. In addition to that, the company also blamed the weakening of the Canadian dollar resulting in a foreign currency translation loss of $28.1 million, increased operating expenses related to growth initiatives in the company’s cannabis sector, and severance costs of $1.9 million related to headcount reductions.

“We are pleased to report strong sequential quarterly revenue growth across each of our core business segments for the first quarter of 2020,” says Brendan Kennedy, Tilray’s Chief Executive Officer. “We remain focused on executing on our long-term growth opportunities and our goal of generating positive Adjusted EBITDA by the end of the fourth quarter. As evidenced by our International Medical sales in the quarter, we expect this segment to demonstrate continued growth and positively impact margins. During and since the first quarter, we took significant steps to drive efficiencies across our business, enabling us to realize annualized cost savings of approximately $40 million compared to fourth quarter 2019 run rates. While the positive impact of these actions are not fully reflected in this quarter’s results, they will become more clearly evident over the course of this year.”

The company said that it has not experienced any adverse material effects from COVID-19. It has implemented work from home strategies where it could and instituted social distancing and additional safety protocols.

Flower King

Tilray reported that its total cannabis kilogram equivalents sold increased by 92.4% to 5,794 kilograms from 3,012 kilograms in the first quarter of 2019. This growth resulted from increases in adult-use cannabis flower sales and the launch of Cannabis 2.0 products. The average cannabis net selling price per gram decreased to $5.28 (C$7.16) compared to $5.60 (C$7.54) in the first quarter of 2019. The decrease was due to a shift in product and channel mix. The average net selling price excluding excise duties for adult-use was $3.49 (C$4.73) per gram for the first quarter of 2020.

 


Debra BorchardtDebra BorchardtMarch 2, 2020
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3min11510

Tilray, Inc.  (Nasdaq:TLRY) stock got slammed in aftermarket trading after the company delivered its financial results for the fourth quarter and full fiscal year ending December 31, 2019. The stock was falling over 11% and was lately trading at $13.54 following a positive day of buying.

The company’s fourth-quarter non-GAAP EPS of -$0.62 missed by $0.24 and the GAAP EPS of -$2.14 missed by $1.80. Revenue of $46.94 million which increased by 202 % over last year also missed estimates by $8.58 million.

The net loss for the quarter was an eye-popping $219.1 million versus a loss of $31.0 million. Adjusted EBITDA was a loss of $35.3 million compared to a loss of $13.3 million in the prior-year period. The increased net loss and Adjusted EBITDA declines were primarily due to increases in operating expenses related to growth initiatives, expansion of international teams, and the addition of Manitoba Harvest and Natura Naturals businesses.

“Our full-year results demonstrate strong sales growth momentum, which we expect to continue in 2020,” said Brendan Kennedy, Tilray’s Chief Executive Officer. “Like our peers, we have faced industry challenges, but we remain committed to driving long-term value for our shareholders. Tilray has a diversified business model comprised of global medical, Canada adult-use and hemp products which position us well in the current volatile market environment. We are still in the early days of this emerging growth industry and will continue being good stewards of shareholder capital as we aim to build the world’s most trusted and valued cannabis and hemp company.”

Positives

On a positive note, the total cannabis kilogram equivalents sold increased over seven-fold to 15,039 kilograms from 2,053 kilograms in the prior-year period. The average cannabis net selling price per gram (excluding bulk sales) increased to $8.78 (C$11.43) compared to $7.52 (C$9.79) in the prior-year period. The average net selling price excluding excise taxes for adult-use was $3.19 (C$4.16) per gram for the fourth quarter of 2019. The increase was due to a shift in product and channel mix.

The company closed a $60 million senior credit facility on February 28, 2020, that bears interest at prime plus 8% and has a two-year term. Tilray ended 2019 with $97 million in cash.

 



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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