OGI: Steady As She GoesTilray is the latest to report poor financial results; stock down +12% after hours today. Last week, closed a 60m credit facility @ 8% interest (high interest rate surely a sign of weak financial position and accompanying risk). Cash reserve dwindling. See below.
Aurora is trading down to 1.34 (usd) and will be delisted from NYSE unless they reverse split shares. Likewise HEXO, also on NYSE, trading at 1.11. And APHA down near 30% in less than 30 days.
As more competitors implode, investors will reallocate funds to the strongest players. Imo, its not a stretch to say that OGI is one of the strongest, if not the strongest (yes, that includes WEED despite its ample cash reserves and big name American support, they are still deep under water) Canadian listed cannabis companies.
Tilray Inc. shares tumbled as much as 13% in post-market trading after the cannabis company reported a wider-than-expected Ebitda loss and revenue that missed the lowest analyst estimate.
Key Insights
- Tilray’s fourth-quarter revenue of $46.9 million was below the consensus estimate of $55.4 million and missed even the lowest analyst estimate of $53 million. It sold $17 million worth of recreational cannabis in the period, up 7.4% from the prior quarter
- Its adjusted Ebitda loss of $35.3 million also missed the consensus expectation of $21.8 million and was wider than the biggest estimated loss of $29.3 million
- Tilray announced that it closed a $60 million senior credit facility on Feb. 28 with a two-year term and 8% interest. The company ended 2019 with $97 million in cash, a number that has prompted analysts to question whether it has enough funding to support its operations