Cannabis firm Tilray reports $341 million net loss in last stand-alone quarter

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Tilray’s recreational and medical cannabis revenue plunged in the final quarter before its merger with Aphria went into effect May 3, and the company recorded a net loss of nearly $350 million.

Tilray’s red ink rose in part due to a large litigation settlement, according to the British Columbia-based company’s first-quarter financial disclosure.

Before merging with Ontario-headquartered Aphria, Tilray reported a net loss of $341 million ($412 Canadian dollars) for the three months ended March 31, about double the year-ago loss of $184.1 million.

Most of the recent loss is attributed to a change in the fair value of the warrant liability, stemming from an increase in the stock price.

The company’s revenue plunged in Canada and elsewhere, coming in well below analysts’ expectations. Management said sales were negatively impacted by COVID-related lockdowns in Canada.

Tilray reports its results in two segments – marijuana and hemp.

In the three months ended March 31, revenue from marijuana fell 23.8% from the previous quarter to $31.4 million.

By category:

  • Adult-use marijuana revenue in the quarter amounted to $19.4 million, 23.3% lower than the previous quarter’s $25.4 million.
  • Canadian medical marijuana revenue fell 23.4% quarter-on-quarter to $3.2 million.
  • International medical marijuana revenue amounted to $8.6 million, down 26% from the previous three months.

Hemp revenue was the lone bright spot, with revenue rising 8.5% sequentially to $16.6 million.

The company booked a litigation settlement worth $45 million in the first quarter.

Tilray said it commenced binding arbitration with cannabinoid supplier Wyckoff Farms in March 2020 over a supply-agreement dispute, according to a regulatory filing.

Wyckoff and Tilray agreed to settle the matter on April 29, 2021.

Per the settlement agreement, Tilray paid $20 million in cash and $5 million in stock to the supplier on April 29, in addition to agreeing to pay either $15 million in stock or $20 million in cash within nine months.

In exchange, the two parties agreed to withdraw from the arbitration proceeding.

By geographic region, Tilray reported revenue of $27.2 million in Canada in the quarter, which was lower than the $29.5 million the company booked in the comparable period one year ago.

In the United States, revenue was $11 million for the three months ended March 31 – significantly lower than the $16.5 million of revenue booked by the company in the same period last year.

The newly merged company is called Tilray.

Shares of the newly merged Tilray trade as TLRY on the Nasdaq and the Toronto Stock Exchange.

Matt Lamers is Marijuana Business Daily’s international editor, based near Toronto. He can be reached at