Tilray 2q23 earnings report
Who believes the CEO's BS?
Right at the start of the TLRY earnings call, the CEO Irwin Simon said, "And last but not least, strengthening our industry-leading balance sheet and driving our cash position because it affords us opportunities for growth expansion, including through cannabis adjacencies within the context of an economically uncertain environment." At the end of 2Q23, TLRY had net debt of $159.4 million, and CRON had net debt of $873 million. Obviously, TLRY does not have an industry-leading balance sheet. If the CEO is going to miss lead investors about something that is provable false, where else is he miss leading shareholders? I would go so far as to say the CEO has no real business plan and is just throwing s^*T on the wall to see what sticks. Further evidence of this is his comment about capacity utilization "if we're overcapacity, how do we start growing fruits and vegetables in some of these facilities and supply food to the world where there are major shortages, and there are price opportunities there? So one thing I want to make sure is we're utilization assets."
TLRY is unlikely to survive due to serious miss management.
Connecticut's opening day
We wrote in mid-December that Connecticut had pushed back the opening of the state's adult-use cannabis initiative. Well, we didn't have to wait very long, yesterday the state was open for business as seven dispensaries had their grand opening in the state. In the first day, over $250,000 in total (medical and adult-use) cannabis sales occurred in the state. The state had a $200K goal for the first day of sales. “We have had no reported issues at any of our retailers, and we are proud of the successful launch of the regulated adult-use market,” said Department of Consumer Protection Commissioner Michelle H. Seagull. “We continue to remind consumers to be patient as they make their initial purchases and to use these products responsibly, including taking into consideration the delayed onset of effects some of these products can have.” Governor Lamont also erased roughly ~44k cannabis-related convictions at the state level.
AYR in Florida
Ayr Wellness (AYRWF) announced yesterday that it had opened two new retail locations in Florida (Tarpon Springs and Orlando). “We are excited to begin 2023 by welcoming customers to our newest locations in Ayr’s home state of Florida,” said David Goubert, President at Ayr. “2022 was a year of tremendous growth for Ayr in Florida and we look forward to building on that momentum and creating lasting relationships with even more customers in the year ahead.” Both stores feature the AYR retail design concept and operate under the Liberty Health Sciences banner. The new stores will offer many of Ayr's national brands and products.
