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Tilray Brands Inc TLRY

Alternate Symbol(s):  T.TLRY

Tilray Brands, Inc. is a global lifestyle and consumer packaged goods company. The Company operates through four segments: Cannabis operations, Distribution business, Beverage alcohol business and Wellness business. The Cannabis operations, which encompasses the production, distribution, sale, co-manufacturing and advisory services of both medical and adult-use cannabis. The Beverage alcohol operations, which encompasses the production, marketing and sale of beverage alcohol products. The Distribution operations, which encompasses the purchase and resale of pharmaceuticals products to customers. The Wellness products, which encompasses hemp foods and cannabidiol (CBD) products. The Company offers a portfolio of adult-use brands and products and expands its portfolio to include new cannabis products and formats. Its brands include Good Supply, RIFF, Broken Coast, Solei, Canaca, HEXO, Redecan, Original Stash, Hop Valley, Revolver, Bake Sale, XMG, Mollo, and others.


NDAQ:TLRY - Post by User

Post by Keeleron Apr 22, 2024 11:34am
98 Views
Post# 36001403

Hexo assets for sale

Hexo assets for saleSimple Simon indicated Tilray's Cash Flow would have shown better than it did - but funds they were expecting for the sale of a Hexo asset had not gone through.

Regardless - cash from the sale of an asset is a one time gain, not a revenue - so Cash Flow from operations would not shown any better a result with a drill down on the figures.


The below is copied directly from Tilray's financials released on April 9 - it indicates that the Kirkland Lake property sold.

So how much cash was Tilray talking about?

The 3 Hexo properties held for sale are:
-Kirkland Lake
-Gatineau production facility and
-Fort Collins warehouse


The Fort Collins vacant quonset if listed for $6 million.

The 48N property was formerly a provincial tree nursery, located in northern Ontario - with a 45,000 sq ft production facility. It's been for sale for some time.

The Gatineau faciltiy was state of the art, brand spanking new, 1.2 million sq ft facility  - and was NEVER put into production by Hexo or Tilray. Simple Simon said it was going to be used to plant commercial produce - cucumbers, tomamtoes etc - but there has been no news whatsoever about that.

So if we guess $5 million for the sale of Kirkland Lake - and $6 million for Fort Collins, Tilray is looking  for arund $15-16 million for Gatineau. 

If and when Tilray sells Gatineau - that will mean that they have sold or closed virtually every Hexo facility they paid $250 million for. (Hexo's/Zenabis Stellarton and Atholvile facilties were lost to SNDL via bankruptcy)

SO - Tilray paid $250 million for a business that now contributes less than $10 million per quarter to Tilray's revenue, along with Hexo's uncontrolled COGS.

Hexo was just another example of Simple Simon's incompetent business decisions - and combined with the $225 milion paid to buy Medmen debt and $85 million for failed craft brewers - investors saw a waste of some $550 million. AND another example of how Simon and his CFO are feeding you a bunch commceral prodcue fertilizer. 


From Tilray's financials,
specifcally Note 3 Capital Assets - page 8.

Assets held for sale consisted of the following:
February 29, 2024 
Land                           $  1,380  
Production facility      20,821
Equipment                     6,437
                                   $ 28,638 

On June 22, 2023, the Company acquired HEXO and recognized the Kirkland lake property as held for sale on the acquisition date, see Note 7 (Business combinations). 
It is expected that the sale of the property will close during the fiscal year ended May 31, 2024.

During the three months ended February 29, 2024, the Company classified its Quebec cultivation 
facility and the Fort Collins extraction facility as held for sale. Through the assessment of facility capacity utilization, it was determined that these facilities would 
be exited and held for sale. 
It is expected that the sale of these assets will be completed within twelve months from the period ended February 29, 2024.
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