Tilray shares down after cannabis producer posts wider net loss
Tilray Q4 results show high costs amid questions on stock’s valuation
Tilray reported its fourth quarter results late Monday with a wider-than-expected loss and higher operating costs, even as revenue beat estimates. Analysts described the quarter as a mixed bag and questioned whether the stock’s valuation has gotten ahead of itself, as Tilray is significantly more expensive than its higher-revenue peers. For example, Jefferies describes Tilray’s move to seek U.S. and European opportunities as “risky” given how investors are increasingly focusing on the company’s ability to execute in Canada, and that any international plans are yet to contribute in any material way to sales.
Big marijuana money eyes Uruguay as next major medical market
Is the next big cannabis market Uruguay? The South American country, the first to legalize recreational cannabis in the world, may emerge as a big player in the medical marijuana market as the industry expands globally, Bloomberg reports. Silverpeak Life Sciences and rival ICC Labs - bought last year for US$217 million by Aurora Cannabis - are among a select group of companies investing in greenhouses and extraction labs with a goal of supplying medical cannabis to the world.
Canopy Growth expands DNA Genetics deal to 2024, eyes European distribution
Canopy Growth is expanding its relationship with DNA Genetics, the company’s premium dried flower producer, and extending its deal with the company into 2024. As part of the deal, Canopy Growth plans to bring DNA’s high-grade cannabis genetic strains to a soon-to-be disclosed European market. Canopy first struck a deal in 2015 to distribute DNA’s cannabis strains, later building upon that deal to sell into the Jamaican market.
RBC continues to dip its toe in cannabis with Eve & Co lending deal
Toronto-based cannabis producer Eve & Co is swinging big to help finance the expansion of its Middlesex County greenhouse production facility, partnering with Royal Bank of Canada. The $18.7 million financing deal appears to mark the first time the Canadian bank is lending into the cannabis industry. Representatives from Royal Bank declined to comment on its deal with Eve & Co., but the announcement marks the second time the bank finds itself in the middle of a cannabis-related deal after its capital markets arm acted as the financial adviser to Newstrike, which was acquired by Hexo Corp. last week.
$0.01 per mg of THC
- The new excise duty rates for cannabis edibles and extracts, including oil and topical products the federal government is proposing in its budget released on Tuesday
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