The quarter ending in February wasn’t great for Tilray, who blamed higher interest rates and a declining market capitalization for its $1.2 billion loss. A loss was expected, but this is a biggie. Nonetheless, Tilray claims this doesn’t effect their available liquidity and cash flow.
International cannabis products seem to be a driving factor here, which was down 39% year-over-year to $6 million. Along with this, wholesale cannabis products fell from $2.8 million last year at the same time, to just $58,000 this quarter. That’s an extremely sharp plunge.
With these numbers, a public company needs a silver lining, and Tilray gave just that with an announcement that they are going to acquire the Ontario-based company Hexo for $56 million. Hexo has been in the red since 2017, losing $1.5 billion in the convening years.
The merging of large companies in order to wait out the storm continues.
Read the original piece over at MJBizDaily.
