On Monday and Tuesday, the shares of Tilray gained 13.5% and 1.23% following the announcement of an unexpected second-quarter profit for the new world’s largest cannabis producer in terms of sales.
The company reported a net loss of 6 million dollars for its most recent quarter. Last year, the company had recorded a loss of 89 million dollars. Although revenue went up 20% to 155 million dollars, it remained below the expected estimate of 170.5 million dollars.
Regarding recreational cannabis, the sales fell about 15% to 49.5 million dollars for the quarter, while the medical cannabis and international sales increased slightly.
“Our collective performance, outlook, and global platform make the Tilray Brands opportunity more compelling than ever, thanks to our success as a cannabis and lifestyle (consumer goods) powerhouse and our constant concern to create shareholder value,” said CEO Irwin Simon.
Tilray and Aphria officially merged in May 2021.
The savings from Tilray’s merger with Aphria can explain those numbers. In fact, it enabled the company to save 20 million dollars more than the 80 million dollars announced before the results were released. This is a massive improvement for the company, whose stock lost around 43% last year.
While Tilray rises, CannTrust Holdings drops.
Canadian cannabis producer CannTrust Holdings made an important statement regarding its reorganization.
“Despite the significant progress made by the CannTrust group within the framework of these procedures, in particular obtaining the reinstatement of its licenses with Health Canada, the restructuring of its operations, the resumption of its production and processing activities, the conclusion of key regulations, as well as the development, approval and sanctioning of the CCAA plan, the Canadian cannabis industry in general, and the CannTrust group in particular, have faced challenges. As a result, CannTrust Group does not have sufficient liquidity to operate beyond the short term.”
The liquidity shortage forced the company to “develop an orderly liquidation plan to maximize the value of its assets.”
Former members of the company’s board of directors are also still facing charges arising from the investigation into the cultivation of cannabis in illegal places.
It’s a hard time for most cannabis companies who have been hit by the repetitive lockdowns on retailers and have been limited in how they market their products. Most of them spent the past two years cutting prices and reviewing their offerings with critical eyes.
