Cannabis Grower Shares Tilray Inc (NASDAQ 🙂 fallen immediately after trading on Monday after reporting a disappointing quarter after the closing bell that included a significant loss for the three-month period ending December 31.
Although it recorded US $ 46.9 million (C $ 62.7 million) in revenue, which is a little over 200% increase over the fourth quarter of the previous year, it was 8% less than the figure published in the previous quarter.
But despite the revenues, the British Columbia-based marijuana producer recorded a net loss of US $ 219.1 million (C $ 292.8 million) for the fourth quarter. The deficit was largely due to increases in operating costs associated with the expansion of the international workforce.
The disappointing end of fiscal 2019 does not seem to change too quickly, since the start of fiscal 2020 brings a new set of challenges for the company.
Tilray weekly price chart
In February, Tilray said it was planning to reduce its workforce by 10% to save costs while struggling to achieve profitability.
Then the company was also struck last week with a $ 110 million lawsuit by 420 Investments based in Alberta, after it had not continued with its plan to buy the cannabis trader, also known as FOUR20. According to a BNN Bloomberg report, both parties confirmed that the legal action against Tilray was filed in a court in Alberta last Friday. According to the report, Tilray no longer wanted to continue with the purchase.
Tilray shares have fallen by around 82% over the past year, one of the steepest drops in the battered cannabis industry. Her performance on the extra blow last week, when Cowen & Co. analyst Vivien Azer mentioned it as one of the three cannabis stocks she was downgrading, would explain that problems with the rollout of edible products would lead to a slowdown in the development of that income stream.
Azer also dropped its forecast for the Canadian cannabis industry as a whole by 32% compared to its last forecast published in November. She now believes that the Canadian marijuana market in 2020 will be $ 3.5 billion ($ 2.6 billion).
Tilray shares rose nearly 6.5% yesterday, closing at US $ 15.35, but then fell close to 11% in trade after the hours when the last profit report was issued.
Area estimates are missing analyst estimates
The month of February was not good for investors in Acreage Holdings (OTC :), (CSE :). The cannabis grower in the US saw his shares fall almost 32% last month.
The trend was not helped by the latest results. Last week, Acreage revealed its fourth quarter financial figures that analysts' estimates have not achieved. The company recorded a loss of US $ 50.5 million (C $ 67.5 million) on sales of US $ 21.1 million (C $ 28.2 million).
The only clear sign was a comment from a Canaccord Genuity analyst who, according to reports, said that the Acreage area, despite the recent declines, is still well below their & # 39; implicit price & # 39; dealt with his deal with cannabis giant Canopy Growth Corp (NYSE 🙂 , (TSX :), adding “positive sentiment towards federal legalization in the US can lead to a significant increase in value for area shareholders.
Weekly price chart of area ownership
Area shares fell by around 3% yesterday and closed at US $ 3.85.
More bad news for CannTrust
The News on CannTrust Holdings Inc (NYSE :), , (TSX :), it seems, is getting worse – even if it has been so bad that you would think it couldn't sink any lower. But it gets worse indeed.
The controversial Canadian pot grower has been flirting with disaster since last July, when it turned out that he grew marijuana in unlicensed spaces in his greenhouse facilities, which led to a loss of his growing permits. The stock has fallen from US $ 10.04 (C $ 13.45) at the end of March of last year to close yesterday at US $ 0.67 (C $ 0.87) – a decrease of more than 93%.
At the end of Friday, the company received an official notification from the New York Stock Exchange that it is no longer in compliance with listing standards because the share price has fallen below the stock price rule.
CannTrust Weekly Price Graph
The NYSE requires that the average closing price of a listed common share is at least US $ 1 during a trading period of 30 consecutive days. From February 25, the average closing price of 30 trading days for CannTrust common shares was $ 0.99. Last Friday the closing price was US $ 0.64 (C $ 0.85).
Another African country is changing its pottery laws
The small African country of Malawi became the newest country last week that changed its laws on cannabis, but stopped decriminalizing recreational use.
The parliament of the country last Thursday opted for the legal cultivation and processing of marijuana for medicinal use or to produce hemp fibers for industrial use.
In December, Zambia legalized the production of cannabis for export. South Africa, which has decriminalized the personal use of cannabis, is currently allowing legal commercial cultivation of cannabis.
