Tilray sales doubled, but losses were widened ahead of legal pot sales in Canada

Tilray Inc. almost doubled revenue as a loss mounted in front of Canadian legalization of recreational cannabis, revealed the pot producer on Tuesday in a earnings report.

Tilray

TLRY, -1.67%

shares dropped more than 5% in aftermarket trading immediately after the results were posted Tuesday afternoon but went back fast and trading was higher in the extended session minutes later. That kind of volatility is not uncommon for the stock, which closed with a 1.7% loss of $ 111.15.

The Canadian company reported net loss of $ 1[ads1]8.7 million in the third quarter, which amounts to 20 cents per share, expands from or 2 cents in the previous year. Excluding items such as share-based compensation, resulting in an amount of USD 11.2 million in the quarter, lost the company $ 7.5 million or 8 cents per share.

Tilrays sales and marketing expenses more than doubled compared to last year's third quarter, and general and administrative costs also more than doubled when the company was facing Canadian legalization. The four analysts asked by FactSet, covering Tilray, expected a net loss of 12 cents per share on revenue of $ 10.1 million.

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Tilray revenues increased by 86% to $ 10 million the year before. Medical demand for cannabis, as well as markets outside of Canada and sales to other licensed manufacturers in Canada accounted for the bulk of sales growth. The company doubled the amount of weeds it sold to 1613 kilos from 684 kilos a year earlier.

Average per gram of porridge prices fell to $ 6.21 from $ 7.53, as the company said was because it sold more pot in bulk than the year before.

Marijuana shares to see: Tilray has big plans and a strong volatile stock

"We are in the early stages to achieve our growth potential, and our team continues to conduct strategically on disciplined operational measures and investments to support Tilray's long-term sustainable growth as the pace of legalization continues to accelerate around the world, "says CEO Brendan Kennedy." In future, demand for our products is strong and we are still committed to expanding our leadership the world market for the medical and adult use of cannabis. "

Tilray said that it granted the Canadian province of Prince Edward Island to its supplier arrangements, which totaled eight of the country's 13 provinces and territories. The company's High Park Farms received a license from Health Canada to sell grass in the quarter.

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The company also raised another $ 435 million in net financing from a convertible bond loan and exclaimed the expansion of its global medical business and clinical trials, such as one at the University of California San Diego Center for Medical Tannery Research related to Essential Tremor .

Tilray is the third bellwether cannabis company to report revenue this week after Aurora Cannabis Inc.

ACB, -3.74%

ACB, -5.00%

posted results Monday and Cronos Group Inc.

CRON, -1.66%

CRON, -2.75%

issued earnings early Tuesday. Canopy Growth Corp.

WEED, -1.93%

,

CGC, -1.79%

Canada's largest producer is set to report earnings Wednesday before the opening bell.

In its conference call Monday, Aurora leaders said that it had sold Ontario, the country's most populous province, 30% of its total supply. Overall, it sold 2,676 kilo pots in the quarter in September.

Stocks in Tilray have increased 319% over the past three months as a cannabis-focused ETFMG Alternative Harvest ETF

MJ, -3.20%

received 20% and the S & P 500 Index

SPX, -0.15%

fell 3.4%.