Shares of Tilray Inc (NASDAQ: TLRY) is trading down in extended hours after the cannabis company said it swung to a loss in its third financial quarter.
Tilray Q3 financial highlights
Lost $1.20 billion that translates to $1.90 per share
That compares to $52.5 million profit a year ago
Revenue slipped 4.1% year-on-year to $145.6 million
Consensus was 5 cents loss on $150 million revenue
Maintained leading market share position in Canada
Tilray continues to expect its operating segments to deliver positive free cash flow in FY23. In the earnings press release, CEO Irwin D. Simon said:
We’ll continue our relentless focus on cost and operational efficiencies and strengthening our industry-leading balance sheet to deliver sustained, profitable growth and shareholder value.
Year-to-date, Tilray stock is now down about 20%.
Tilray to acquire HEXO Corp
Also on Monday, Tilray announced an all-stock deal to buy HEXO Corp (TSE: HEXO). The said transaction will likely complete in June of 2023 if it secures approval from the shareholders and meets other customary closing conditions.
The deal will replace each share of HEXO Corp with 0.4352 shares of Tilray Inc. According to Chairman Mark Attanasio of HEXO Corp:
HEXO shareholders will benefit from Tilray’s diversified business and the strong plan they have to reinforce their industry leadership, continue to strengthen top and bottom lines, and drive value creation.
HEXO shares jumped nearly 35% today following the Tilray news.
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