Tilray, Inc., ("Tilray" or the "Company") (NASDAQ: TLRY) a global pioneer in cannabis production and distribution, today reported financial results for second quarter and six months ended June 30, 2018. All financial information in this press release is reported in U.S. dollars unless otherwise indicated.
"We are very pleased with our strong start to 2018. Tilray is well-positioned to continue to pioneer the development of the global medical cannabis market and to become a leader in the adult-use cannabis market in Canada," said Brendan Kennedy, President and Chief Executive Officer of Tilray. "In the second quarter, we generated significant revenue growth as a result of our global strategy, our multinational distribution network and our commitment to research, innovation, quality and operational excellence."
Second Quarter 2018 Financial Highlights
- Revenue increased to $9.7 (C$12.7) million, up 95.2% compared to the second quarter of last year. The increase in revenue was driven by increased patient demand in Canada, sales to other Licensed Producers and international sales.
- Total kilogram equivalents sold increased 745 kilograms to 1,514 kilograms, or 97%, compared to the prior year.
- Average net selling price per gram increased from $6.20 to $6.38 (C$8.12 to C$8.36) for the three months ended June 30, 2017 and 2018, respectively. The increase was primarily due to growth in higher potency product and extract sales, partially offset by an increase in wholesale revenues.
- Net loss for the quarter was $12.8 million compared to $2.4 million for the second quarter of 2017. Net loss includes non-cash stock compensation charges of $5.6 million compared to a $35 thousand charged in the prior year period. Adjusted EBITDA was a loss of $4.7 million compared to a loss of $1.9 million the second quarter last year. The increased net loss and Adjusted EBITDA decline was primarily due to the increase in operating expenses related to continued growth, expansion of international teams, and costs related to financing and the initial public offering ("IPO").
Business Highlights in 2018 to date:
- Successfully completed IPO in July whereby 10.350 million shares of Class 2 Common Stock were sold at an initial price to the public of $17.00 per share. The Company received net proceeds of $163.6 (C$216.9) million after the underwriting discount. Net proceeds will be used to fund the build out of cultivation and processing capacity, repay outstanding principal and interest under the Privateer Holdings debt facilities, and for future acquisitions and working capital.
- Prior to the IPO, completed Series A funding of $55.0 (C$69.2) million from leading institutional investors.
- Signed agreements to supply cannabis to adult-use consumers in seven Canadian provinces and territories (British Columbia, Manitoba, Nova Scotia, Ontario, Quebec, the Yukon territory and the Northwest Territories).
- Entered into a strategic agreement with Sandoz Canada, a division of Novartis, to collaborate on the creation and sale of co-branded and co-developed non-combustible medical cannabis products.
- Signed agreement with Shoppers Drug Mart Inc., Canada's largest pharmacy chain with more than 1,200 pharmacies and expect to supply Tilray products following approval of Shoppers' application to become a Licensed Producer.
- Signed binding letter of intent with Pharmasave, one of Canada's leading independent pharmacy chains with more than 650 pharmacies, which Tilray anticipates will allow it to supply Pharmasave stores with Tilray products contingent upon a change in laws that permits Canadian pharmacies to distribute medical cannabis to patients.
- Completed exports to Argentina, South Africa and the United Kingdom, making Tilray products available in 11 countries on five continents.
- Launched High Park Holdings Ltd., Tilray's wholly owned subsidiary formed to serve the pending adult-use market in Canada with a broad-based portfolio of cannabis brands and products.
- Announced the launch of the CANACA™ brand, a new cannabis brand celebrating Canadian roots, values and this historical moment in Canada as the country becomes the world's first G7 nation to federally legalize cannabis through adult-use legalization.
- Announced clinical study results of Tilray® 2:100 product showed promise in Canada's first pediatric study of mixed THC/CBD medical cannabis oil for children with drug-resistant epilepsy.