From short-term health care bets to long-term energy plays, and the swings of the cannabis market, small-cap investors have had their hands full keeping up with the markets in 2023.
A recent merger among top names in cannabis hit the health care market hard this week. It was made public that Canadian cannabis producer Tilray Brands Inc. (TSX:TLRY) would buy its rival, Hexo Corp. (TSX:HEXO) in a deal worth $229 million U.S.
Tilray will pay $56 million U.S. in stock to acquire the remaining outstanding shares of Hexo that it doesn’t already own.
Tilray will also exercise a $173 million U.S. secured convertible note it acquired from Hexo’s former creditor HT Investments MA LLC in July 2022.
Tilray announced the takeover of Hexo as it reported a fiscal Q3 loss of $1.2 billion U.S., mainly thanks to a $1.1 billion U.S. impairment charge. Tilray’s net revenue had increased to $145.6 million compared to $144.1 million in the prior quarter.
Tilray’s stock has struggled in the last 12 months, having lost 57.9 per cent of its value since this time, last year. Over the last three months, TLRY stock has declined 16.7 per cent.
Elsewhere in the health care space, Theratechnologies Inc. (TSX:TH) reported its Q1 2023 financial results that show consolidated revenue growing by 7 per cent to US$19.9 million.
The Montréal-based biopharmaceutical company stated that the performance was supported by 9 per cent growth in revenue from its EGRIFTA SV product along with 5 per cent growth for Trogarzo which are both used by patients with HIV.
(in thousands of U.S. dollars)
|
Three Months Ended
February 28, |
Change |
|
2023 |
2022 |
|
| EGRIFTA, EGRIFTA SV net sales |
12,711 |
11,704 |
8.6 per cent |
| Trogarzo net sales |
7,197 |
6,853 |
5.0 per cent |
| Revenue |
19,908 |
18,557 |
7.3 per cent |
The company confirmed its fiscal year 2023 revenue guidance range of between US$90 million and US$95 million, with the growth of its commercial portfolio expected between 13 per cent and 19 per cent.
“We remain strongly committed to the success of this promising oncology program through a sensible, stage-gated approach to drug development,” Chief Executive Paul Lévesque said in a statement.
Lévesque added that the growth in new patient enrollments and stated the company’s objective to become earnings (adjusted EBITDA) positive by the end of 2023.
Trillion Energy International (CSE:TCF) reported a significant increase to its South Akcakoca Sub-Basin (SASB) gas reserves in Turkey.
The company’s January 31, 2023 reserve report update by GLJ, Ltd. is bolstered by new discoveries made after year-end:
The company is spudding the Bayhanli-2 well at the SASB gas field.
Bayhanli-2 is the fifth gas well in Trillion’s multi-well drilling program at the SASB. The well targets a previously discovered gas pool, which was never previously produced, through a long-reach directional well bore.
The Bayhanli gas pool is a significant target and may require additional wells to fully produce the economic reserves.
The company spud the well on April 5, 2023, which is currently drilled to a depth of 496 m. Management anticipates that drilling, casing, perforation, and testing will be completed over 45 days.
Upon completion, management expects Bayhanli-2 to reach a total measured depth of 3,400 metres and true vertical depth of roughly 1,200 metres, extending horizontally over 2 km from the East Ayazli offshore tripod.
Every week, the story in the markets changes for small-cap investors, and on the Bullboards. Next week could bring a new and exciting mining play, a sudden opportunity for an energy surge, or something completely out of left field … as always, we will have you covered. Stay updated, stay safe, and stay tuned. For previous editions of Buzz on the Bullboards: click here.