- The stock price of Tilray Inc (NASDAQ:TLRY) has increased by 78.44% this past week as it went from $11.04 on January 11 morning to $19.70 today. This is why it happened.
The stock price of Tilray Inc (NASDAQ:TLRY) has increased by 78.44% this past week as it went from $11.04 on January 11 morning to $19.70 today. One of the biggest triggers for the stock price increase has to do with Aphria announcing a record second quarter of the fiscal year 2021. Tilray and Aphria have plans to merge in order to create the largest global cannabis company in the second quarter of the calendar year 2021.
Aphria had reported net revenue of $160.5 million, an increase of 33% from the prior-year quarter. And the adjusted EBITDA was $12.6 million, marking the 7th consecutive quarter of increasing positive adjusted EBITDA.
The company had ended the second quarter with a strong balance sheet, including $320 million of pro forma cash. And during the quarter, the company improved its free cash flow by over $70 million.
KEY QUOTES:
“We are pleased with our second-quarter results which reflect the strength of our diversified global cannabis and consumer packaged goods businesses. Our market-leading adult-use cannabis brands and sales remained strong and our international medical cannabis sales are off to a solid start. We also advanced our long-term vision for building a global cannabis lifestyle consumer packaged foods company positioned for sustainable, profitable growth with the completion of our acquisition of SweetWater late in the second quarter. In addition to advancing our long-term vision and growth objectives, the addition of SweetWater is a cornerstone within our U.S. strategy and a strong complement to our existing Aphria business that we believe will return compelling financial benefits. We already hit the ground running by starting to build upon the strengths of each of our respective complementary cannabis lifestyle brands broadening our consumer reach and enhancing loyalty with existing consumers.”
“We remain excited about our recently announced definitive agreement with Tilray to combine to create the largest global cannabis company and are on-track to close the transaction in the second quarter of calendar year 2021. At Aphria, we continue to build on our strong foundation in Canada and internationally to capitalize on growth opportunities utilizing our best-in-class cultivation and manufacturing across a greater distribution footprint and enabling us to connect with an increasing number of consumers and patients with our industry-leading brands and diversified product offerings. Looking forward, we are planning to execute on the significant strategic and financial opportunities provided by the addition of SweetWater and, upon the closing of the Tilray business combination, including our over $100 million anticipated pre-tax synergies, to generate significant value for our stakeholders.”
— Irwin D. Simon, Aphria Chairman and Chief Executive Officer
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
