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Tilray Shares Rise On Better-than-expected Sales In Q4

Shares of Tilray Inc. (TLRY) rose more than 2 percent in after-hours trading on Monday after the Canadian marijuana company's fourth-quarter revenue more than tripled from the prior year and beat analysts' expectations. The company also said its strategic partnerships and acquisitions position it to accelerate global sales growth and drive long-term shareholder value.

However, Tilray's net loss for the fourth quarter widened from last year on higher operating expenses.

The company's net loss for the fourth quarter widened to $31.01 million or $0.33 per share from $2.93 million or $0.04 per share in the prior-year period.

Net loss for the quarter includes non-cash stock-based compensation charges of $4.1 million, compared to $34 thousand in the prior year period.

The wider net loss was primarily due to the increase in operating expenses related to growth initiatives, expansion of international teams, and costs related to financings as well as merger and acquisition activities.

However, revenue for the quarter more than tripled to $15.53 million from $5.11 million in the same period last year, driven by bulk sales, inaugural sales in the Canadian adult-use market, and accelerated wholesale distribution in export markets.

On average, analysts polled by Thomson Reuters expected the company to report loss of $0.12 per share for the quarter on revenues of $14.15 million. Analysts' estimates typically exclude special items.

Total kilogram equivalents of cannabis sold by the company increased almost three-fold to 2,053 kilograms from 694 kilograms in the year-ago quarter. Average net selling price per gram increased 5.5 percent to $7.52 from $7.13 in the prior-year period.

Tilray noted that in 2018, there was significant revenue growth for extract products compared to dried flower, where extracts represented 49 percent of the sales mix in 2018 compared to 20 percent in 2017.

Brendan Kennedy, President and Chief Executive Officer of Tilray, said, "Looking ahead, we remain committed to pursuing global growth opportunities and will be disciplined in deploying capital, particularly in the United States and Europe, where we believe we have multiple paths for value creation."

In December, Tilray announced a partnership with AB InBev (AHBIF.PK, BUD) to research non-alcohol beverages containing tetrahydrocannabinol and cannabidiol.

Tilray has also entered into a global supply and distribution agreement with Swiss drugmaker Novartis AG's (NVS) subsidiary Sandoz AG to sell and distribute medical cannabis products globally.

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