Cannabis Company Tilray May Pivot to Fruit & Veg Cultivation

January 10, 2023 · Highly Capitalized

NEW YORK- After Canadian cannabis company Tilray Brands Inc. TLRY, +1.09% said it had lost money in the second quarter, its stock fell 3.7% in premarket trading on Monday.

In contrast to a profit of $5.8 million, or breakeven per share, for same time last year, Tilray recorded a loss of $61.64 million, or 11 cents per share, for the second quarter.

The adjusted loss was 6 cents per share, in line with the analysts’ forecasts. The second quarter’s net revenue for the business dropped from $155.15 million to $144.14 million. On a constant currency basis, net revenue in the most recent quarter totaled $157.6 million.

Analysts predicted $154.8 million in revenue.

Simon mentioned the absence of congressional action on American legalization as the reason for this poor performance.

Tilray’s U.S. distribution network remains mainly inactive because Congress allowed cannabis to remain federally illegal.

During the call, Simon stated that there were food shortages worldwide for lettuce, tomatoes, and strawberries. How can we start growing fruits and vegetables at some of these facilities if we have excess capacity so that we can feed everyone on the planet?

Simon emphasized that such a change would only be temporary and that Tilray’s main focus would remain on the global cannabis market. The business is already well-established in Canada and Europe.

After the earnings call, Simon also told Bloomberg that once the U.S. and more European nations fully legalize cannabis, any production facilities that are converted to use for produce growth might be converted back to use for cannabis growing.

Tilray now owns three alcoholic beverage producers, including SweetWater Brewing Co. and Breckenridge Distillery, in addition to Montauk beer, and it is considering other acquisitions in the hemp sector to increase the reach of its hemp-based food items.

In addition, Simon stated that Tilray is seeking to grow share in those markets as it waits for lawmakers to take action on legalizing cannabis at the national level. (Full Story)

In category:Business
Next Post

Cannabis Lounges Could Be the Next Big Hotel Perk

Chris Chiari stood in front of 420 E 11th Avenue in Denver 12 years ago having just sold his home in Florida. The building there looked like a castle, he says. It was on the market. "I pointed up to…
Previous Post

Is the US Cannabis Industry Just a Front for the Russian Mob?

Roman Abramovich, a Russian billionaire and former owner of the English Premier League's Chelsea Football Club, has been discreetly investing in cannabis enterprises for years. According to Forensic News, the news outlet that obtained the secret documents, Roman Abramovich has contributed…
Random Post

Montana Gov. Signs Bill Extending Moratorium on Cannabis Licenses

Montana Gov. Greg Gianforte (R) on Tuesday signed legislation extending the state’s moratorium on cannabis licenses for another two years, KTVH reports. Under the law, the moratorium only allows medical cannabis companies that were licensed as of 2020 to obtain adult-use licenses.  The…
Random Post

Schumer Aims To Bring Newly Revised Marijuana Banking Bill To The Floor ‘With All Due Speed’ After Next Week’s Committee Vote

A marijuana banking bill that’s set for a Senate committee markup next week has an updated title and several new provisions related to federal financial regulations, guidance and reporting requirements, according to a summary that is circulating. And Senate Majority…
Random Post

Federal Worker Safety Official Says Marijuana Prohibition Makes His Agency’s Job ‘Complicated’

An official with the federal Occupational Safety and Health Administration (OSHA) says that ongoing marijuana prohibition makes the agency’s job “complicated” when it comes to ensuring the safety of workers in the cannabis industry. At a National Advisory Committee on…
Random Post

American Trade Association for Cannabis and Hemp Calls on Congress to Regulate Intoxicating Hemp Products

The American Trade Association for Cannabis and Hemp (ATACH) last week released a policy paper calling on Congress to pass regulations for intoxicating hemp products including delta-8 and delta-9 THC products. The organization says the products “present a threat to public health…