MW Tilray pot sales jump ahead of Aphria merger, stock gains more than 10%
By Jeremy C. Owens
Pot company predicts merger with former rival will take place in the second quarter as revenue increases more than 20%, losses narrow
Tilray Inc. narrowed losses and boosted revenue in the final three months of 2020, as it prepared to merge with fellow 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 was profitable on an adjusted-Ebitda basis, producing $2.2 million by that metric.
Tilray reported total sales of $56.6 million, or $50.7 million when accounting for excise taxes, after posting revenue of $46.9 million a year prior, or $42.5 million after excise taxes. Analysts on average predicted a loss of 14 cents a share on sales of $56 million, according to FactSet, with a smaller projection for adjusted Ebvitda of $300,000.
Tilray and Aphria (APHA.T)have agreed to merge in a deal they say will create the world's largest cannabis company by revenue , with the Tilray name and ticker remaining after the deal is complete. Tilray said in Wednesday's release that the deal should close in the second quarter.
"These results required hard work and dedication and I sincerely appreciate everything the Tilray team has done to transform our business during 2020," Tilray Chief Executive Brendan Kennedy said in a statement. "We now look forward to the beginning of the next chapter in our corporate journey."
Tilray shares jumped more than 10% in after-hours trading Wednesday, after the stock dove 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 marijuana legalization in the U.S. have juiced pot stocks.
-Jeremy C. Owens; 415-439-6400; AskNewswires@dowjones.com
$(END)$ Dow Jones Newswires
February 17, 2021 16:34 ET (21:34 GMT)
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