Tilray sold 10,848 kilograms of weed in the recently ended quarter compared to 1,613 kilograms sold in the prior-year quarter. The average net selling price per gram decreased to $3.25 from $6.21 in the year-ago quarter, due to the shift in product and channel mix.
“We are in the early days of seeing our strategic initiatives bear fruit – including our European expansion, brand portfolio evolution and strategic partnership product launches. We continue to expect significant growth in the fourth quarter and into 2020,” said CEO Brendan Kennedy.
The Nanaimo, British Columbia-based weed firm entered into an agreement to acquire cannabis retailer FOUR20 at the end of August. This transaction is expected to complete by the end of the first quarter of 2020.
Under the agreement terms, Tilray will deliver up to C$110 million consisting of C$70 million in Tilray Class 2 common stock at closing and $40 million in Common Stock subject to the achievement of certain performance milestones by FOUR20.
Earlier today, Cronos Group (NASDAQ: CRON) reported its third quarter results in which the company swung to a profit from a loss year ago. Revenue rose sharply to CAD12.7 million, helped by the launch of the adult-use market in Canada and the inclusion of the Redwood business.
Rivals Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC) will be reporting their quarterly earnings on Thursday, November 14, after the market closes.
Shares of Tilray, which plunged to a new 52-week low ($20.20) last month, lost 69% of its value so far in 2019 and plunged 81% from this time last year.