Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Tilray Earnings Give Aphria Shares A Bump

By (Brenda O'Farrell/ MarketsFeb 23, 2021 05:25AM ET
Tilray Earnings Give Aphria Shares A Bump
By (Brenda O'Farrell/   |  Feb 23, 2021 05:25AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Tilray (NASDAQ:TLRY) grabbed all the headlines last week after it posted its first profitable quarter—on an adjusted basis —last Wednesday. But by the end of the week, it was Aphria (NASDAQ:APHA) (TSX:APHA), the company it is set to merge with to form the world’s largest cannabis company, that walked away with all the gains.

Tilray Daily
Tilray Daily

Shares of Tilray saw an immediate lift after it unveiled its earnings last week that included US$50.7 million in net revenue, a huge gain compared with the same period last year. It also reported a substantial US$57-million drop in costs, a move that helped it to report an adjusted US$2.2-million profit for the three-month period, ahead of the 2021 Q2 close of its announced merger with Aphria.

The news sent Tilray shares up with double-digit gains. But by the end of the week, the stock was down about half a percentage point, closing Friday at $29.21, lower by just over 2% on the week. It dropped again yesterday, finishing the day down another 10% at $26.29.

Aphria Daily
Aphria Daily

Meanwhile Aphria stock closed last week with an almost 20% gain in its price. Shares of the Canadian cannabis grower spiked in mid-week last week on the strength of the Tilray headlines, to hit a high of $21.98 before closing of the week at $20.28. It has since given back some of those gains, closing yesterday at $19.35. Year to date, Aphria is up about 177%

Hexo Strikes Deal With Zenabis

Tilray is not the only major cannabis company that is on the path to becoming one of the biggest in a class.

Last week, Hexo Corp (NYSE:HEXO) (TSX:HEXO) announced it has struck a C$235 million (US$185.7 million) all-stock deal to acquire Zenabis Global (OTC:ZBISF) (TSX:ZENA), a Vancouver-based company that is among Canada’s largest licensed producers of medical and recreational cannabis. The new combined company will be among the “top three licensed producers in terms of combined Canadian recreational cannabis sales,” according to a joint statement issued by the companies.

The deal will increase Hexo’s greenhouse growing capacity and immediate access to the European medical cannabis market through Zenabis’s local partnership network.

Shares of Hexo have gained almost 43% in the past year.

Canadian Cannabis Sales Soar, But Fail To Meet Predictions

Canadian legal marijuana sales were way up in 2020, according to the latest figures released by Statistics Canada. But despite the bump, the figures are below what analysts had predicted.

In 2020, Canadians purchased C$2.6 billion (US$2.1 billion) of legal recreational cannabis, more than twice the amount purchased in 2019, according to the figures released by StatsCan last week. The exact jump amounted to a 120% increase in sales. Forecasters, however, claimed the market would grow to more than C$3 billion (US$2.37 billion), with analysts with BDS Analytics having said sales would hit C$3.3 billion (US2.6 billion), while Cowen & Co., according to media reports, were expecting to see sales hit C$3.5 billion (US$2.765 billion).

Despite analysts having missed the mark, at least one prediction for the current year expects to see the Canadian recreational weed market will hit the C$4-billion (US$3.16 billion) mark. That is the word from Stifel-GMP analyst Andrew Carter, as reported by BNN Bloomberg.

New Jersey Legalizes Pot

New Jersey became the 13th state to legalize cannabis on Monday after voters last November supported the move. New Jersey joins Maine, Vermont and Massachusetts as the only other states in the northeast US to legalize marijuana.

The bill that was signed into law also allows state-approved dispensaries to sell the substance, although it could take up to a year before sales of recreational cannabis will be seen.

Tilray Earnings Give Aphria Shares A Bump

Related Articles

Tilray Earnings Give Aphria Shares A Bump

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email