It’s time for your Daily Hit of cannabis financial news for March 18, 2019.
On The Site
Tilray Inc. (TLRY) delivered its full year and fourth quarter results on Monday after the closing bell. The stock initially dipped, but then reversed course to move higher by 3% to lately trade at $74.50.
Revenue increased to $15.5(C$20.9) million, up 203.8% compared to the fourth quarter of last year and beating the Yahoo! Finance analyst average estimate for $14.15 million. The company said that revenue was driven by bulk sales, inaugural sales in the Canadian adult-use market and accelerated wholesale distribution in export markets.
Estimates were all over the map with lows at $12 million and highs at $18 million. The company was facing criticism over inventory issues for the fourth quarter as demand for adult use cannabis surprised most cannabis companies in Canada. Tellingly, the company sent out a tweet right before the earnings were released saying that its inventory levels were all stocked up.
Curaleaf Holdings, Inc. (CSE: CURA / OTCQX: CURLF) is acquiring Nevada-based Acres Cannabis in a deal valued at $70 million that is expected to close in 2019. According to the company statement, Acres operates Nevada’s largest cultivation facility, a state-of-the-art production and extraction lab and an immersive cannabis dispensary located in the city of Las Vegas, adjacent to the Strip, with a second dispensary under construction.
The acquisition is valued at $70 million, with $25 million to be paid in cash, $45 million to be paid in Curaleaf stock and additional consideration to be paid if certain financial targets are exceeded.
In Other News
Fourth TerrAscend Corp. (CSE: TER; OTCQX: TRSSF) reported fourth-quarter revenue that increased to CAD$4.8 million and full year revenue ending December 31st, 2018 of and CAD$6.6 million.
“We are thrilled with what we accomplished in 2018, and we are seeing increasing momentum across our businesses thus far in 2019. Our sales in Canada have been strong since the October launch of the adult-use market, and our Haven St. Premium brand is clearly resonating with provincial distributors and consumers,” said Matthew J. Johnson, President of TerrAscend Corp., and TerrAscend USA, Inc.