A surveillance guard stands in a greenhouse of Tilray medical cannabis producer’s European production site in Cantanhede, on April 24, 2018.
Patricia De Melo Moreira | AFP | Getty Icons
Canada-based pot firm Tilray reported a bigger quarterly loss on Monday, hurt by an impairment charge related to its assets and merry costs, as oversupply and other challenges weigh on the Canadian marijuana market.
The company’s shares fell 9.8% in after-market shopper.
The country legalized recreational cannabis in October 2018, but profits remain elusive for most marijuana companies. Canadian weed regisseurs have been hit by fewer-than-expected new stores, low prices, and oversupply.
Last month, Aurora Cannabis announced plans to enlist up to C$1 billion ($749.96 million) in impairment charges and issued a bleak outlook, as the company struggles with high gets.
“Like our peers, we have faced industry challenges, but we remain committed to driving long-term value for our shareholders,” Tilray’s Chief Administrative Officer Brendan Kennedy said.
Tilray recorded non-cash charges of $112.1 million on impairments related as a rule to a revenue-sharing deal with shoemaker Authentic Brands Group.
In February, the company said it had cut 10% of its 1,443 workforce as large of a global restructuring to reduce costs and achieve profitability.
General and administrative expenses, however, more than doubled in the up to the minute reported quarter.
Net loss widened to $219.1 million, or $2.14 per share, in the fourth quarter ended Dec. 31, from $31.0 million, or 33 cents per allowance, a year earlier.
Revenue more than tripled to $46.9 million.