A net loss of CAD$350 million (USD$290 million) was recently recorded by Canadian cannabis company Tilray, which officially merged with Aphria on May 3. The devastating financial loss comes after the company’s recreational and medical cannabis revenue plummeted in the final quarter, prior to its Aphria merger.

Before its official merging with Aphria, Tilray logged a net loss of CAD$412 million (USD$341 million) for the three months concluding on March 31. When compared to the CAD$184.1 million ($152 million) loss that was recorded during the same period last year, these figures demonstrate losses of more than double.

Not only did the company’s revenue sink in Canada but also, elsewhere on the cannabis map; something that analysts believe was triggered by COVID-related lockdowns and social distancing rules Canada. 

A big chunk of the company’s financial depletions has been attributed to adjustments in the fair value of the warrant liability; emerging from soaring stock prices. 

Furthermore, according to British Columbia-based Tilray’s first-quarter financial disclosure, a litigation settlement played a big role in the Canadian cannabis giant’s losses.

Tilray reports financial results in cannabis and hemp sectors 

Two major sectors are highlighted in Tilray’s financial results — cannabis and hemp. For the three months that concluded on March 31, revenue dropped 23.8 percent from the previous quarter to just CAD$31.4 million (USD$26 million).

Let’s take a look at the quarter’s revenue results by category:

• Adult-use cannabis revenue totaled CAD$19.4 million (USD$16 million). This figure is 23.3 percent less than the CAD$21 million recorded in the previous quarter.
• Canadian medical cannabis revenue sank 23.4 percent on a quarter-on-quarter basis to CAD$3.2 million (USD$2.6 million).
• A total of CAD$8.6 million (USD$7.1 million) in international medical cannabis revenue was recorded. This is 26 percent less than the previous three months.
• The company’s hemp-related earnings managed to stay positive, with revenue soaring 8.5 percent sequentially to CAD$16.6 million (USD$13.8 million).

Let’s take a look at the quarter’s revenue results by geographic region:

• Tilray’s revenue gleaned through Canada’s market was reported as CAD$27.2 million (USD$23 million) for the quarter. This was less than the $29.5 million (USD$24.4 million) logged by the company during the same period one year ago.
• Revenue gleaned through the U.S. cannabis market was CAD$11 million (USD$9 million) for the three months concluding on March 31. This was a stark contrast to the CAD$16.5 million (USD$13.7 million) accrued during the same period last year.

Tilray and Aphria’s newly merged trade can be found on the Nasdaq and the Toronto Stock Exchange under the ticker “TLRY”.