Tilray continues to sell itself.
Tilray Brands Reported 4Q22 and FY22 Result Yesterday Morning.
Tilray reported $628M in revenue for FY2022, which is a 22% YoY increase, and 8% increase on a QoQ basis. 4Q international cannabis revenue increased 205% YoY and they grew their medical market share in Germany by 20%. They had a goal to cut costs by $100M by the end of FY2023, and they have already cut $85M since announcing that goal. By FY2023, Tilray plans on being cash flow positive. In the quarter, they completed their transaction of Hexo which should give the company growth opportunities in North America and Europe. The stock reacted well to the report, being up over 10% on the day, but continues to be down ~50% from the start of the year. Tilray’s management team was not shy about what they thought they could see if legalization occurred in North America and in Germany but at this time, we don’t see Tilray as they currently sit as an outperformer in these markets.
Watch out for the hall of famer’s cannabis line.
Hello Boston! Your newly named Hall of Fame baseball icon, David Ortiz, is launching a new venture in the cannabis space called Papi Cannabis. Papi Cannabis is partnered with Rev Brands to manufacture and wholesale Big Papi’s cannabis in Massachusetts, which will be available at the end of the month. “Once I embraced the flow of the flower everything changed,” Ortiz said in the release. “Cannabis has helped me relax, sleep better, manage stress and heal physically after a lifetime of playing ball, and I look forward to sharing Papi Cannabis and my personal journey to help people understand its benefits.” The first products that will be launched by Big Papi are some prerolls, which he says are his favorite, and the packaging is artwork that his daughter designed.
Denver Taking A Different Approach To Social Equity.
As it currently stands, there is no cannabis delivery in Denver but that could change soon as the cannabis market in Colorado is threatened by demand and pricing deterioration which could cause marginalized businesses to sell their licenses to larger corporations. Like most communities, social equity is the key focus in Denver but they are taking a unique approach to it. They are proposing a social equity program where the only businesses that can deliver cannabis are those marked as having social equity licenses. This would give them a clear advantage in the city, but it is believed that the city is way oversaturated with dispensaries so it is unknown how effective this idea would actually be. But I am giving Denver props for thinking outside the box on this one.
