Tilray Reports $10 Million In Revenue As Prices For Cannabis Fall

Tilray (TLRY) stock fell after the company reported third-quarter revenue of $10 million, an increase of 85% versus the same time period for last year. The company said that the average net selling price was $6.21 versus last year’s $7.53. The net loss for the quarter was $18.7 million or $0.20 per share compared to last year’s $1.8 million or C$0.02 per share.

Tilray has a $10 billion valuation and the company has limited the number of shares available to trade. This has caused the stock to experience volatile swings as demand outstripped availability.

“The cannabis industry remains very robust and we are pleased with our revenue momentum and strategic achievements in the third quarter,” said Brendan Kennedy, President and Chief Executive Officer of Tilray. “We are in the early stages of achieving our growth potential and our team continues to strategically execute on disciplined operational initiatives and investments to support Tilray’s long-term, sustainable growth as the pace of legalization continues to accelerate around the world. Going forward, the demand for our products is strong and we remain committed to expanding our leadership in the global medical and adult-use cannabis markets.”

Following the end of the quarter, Tilray priced $475 (C$610.6) million of Convertible Senior Notes due in 2023 in a private placement. The company said it intends to use the net proceeds for working capital, future acquisitions, and general corporate purposes, and to repay existing mortgage related to its facility in Nanaimo, British Columbia.

Not included in this quarter’s earnings are sales from the adult-use market which didn’t begin until October 17th. Tilray didn’t sign supply agreements with all of the provinces and the company gave no indications in its earnings release how these sales were going. Other companies have given some indication of sales, but Tilray did not.  This lack of an update could be a cause for concern.

Debra Borchardt

Debra BorchardtDebra Borchardt

Debra Borchardt is the CEO, Co-Founder, and Editor-In-Chief of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Masters degree in Business Journalism from New York University.


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