Why Tilray Inc (NASDAQ: TLRY) stock is crashing

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Tilray Inc (NASDAQ: TLRY) stock lost over 12.6% on March 3rd, 2020 (as of 10:36 am GMT-5; Source: Google finance) after the company posted mixed results for the fourth quarter of 2019. The company has reported a fourth-quarter net loss of $219.2 million, versus a loss of $31 million in the year-ago quarter. Tilray has recorded a non-cash charge of $112.1 million related to the impairment of an agreement with the Authentic Brands Group that the company had previously signed. When the company inked the partnership 2019, Tilray was part of its plan to get marijuana products into more retail outlets and to market consumer brands around the world. For the first quarter of 2020, analyst projects a loss to be of 30 cents a share and sales expected to be of $61.7 million.

TLRY in the fourth quarter of FY 19 has reported the adjusted earnings per share of $2.14, while the adjusted revenue of $46.9 million in the fourth quarter of FY 19, missing the analysts’ estimates for revenue of $55.3 million. Tilray’s revenue includes excise taxes of $4.4 million for the fourth quarter of 2019.

Meanwhile, in Europe, in late December, Tilray Portugal has received its second GMP certification according to the European Union standards for the manufacturing facility in Cantanhede, Portugal. This is the second GMP certification for Tilray Portugal, which allows the company to formulate, manufacture and export GMP certified finished medical cannabis products, including dried flower and oils from Portugal to Germany and other European and international markets with legal medical cannabis regulations. Further, after receiving the GMP certifications, the company had successfully exported medical cannabis to Germany and Israel from Portugal, and from Germany to Switzerland. The company expects to increase the exports from the European Union campus in Portugal, which will be the international hub for operations with indoor, outdoor and greenhouse cultivation sites, as well as research labs, processing, packaging and distribution sites for medical products.

In 2020, the company expect to increase the greenhouse and processing capacity in Portugal by 340%. In the fourth quarter, Tilray Portugal had also partnered with the University of Coimbra to develop a first of its kind strategic partnership to research cannabis-derived medical products. During the fourth quarter, the company had also imported medical cannabis into the United States from Canada for a new clinical trial conducted by Columbia University.

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