Tilray Inc. shares on Monday gained back some of their recent losses after the Canadian cannabis producer posted a narrower-than-expected loss and played up its prospects for expansion into Europe and in beverages.
Tilray CEO Irwin Simon told MarketWatch the company would consider acquisitions of companies that will add to earnings, but not businesses that are burning cash. M&A deals could help Tilray achieve its target of 20% to 30% market share in Canada.
“There’s got to be consolidation in the Canadian market because there are just too many LPs (licensed producers),” he said. “The question is whether an acquisition would be synergistic.”
Simon said he’d rather issue equity to buy an accretive company, than issue fresh debt. “I’m not a big proponent of debt…partly because I’m conservative and interest rates could go up,” he said. “Debt has to be paid back.”
Turning to the company’s second-quarter results, Tilray TLRY TLRY said it lost $201,000 or zero cents a share, compared to a loss of $99.9 million, or 41 cents a share, in the year-ago period.
Revenue increased to $155.15 million from $129.46 million.
Tilray CEO Irwin Simon told MarketWatch the company would consider acquisitions of companies that will add to earnings, but not businesses that are burning cash. M&A deals could help Tilray achieve its target of 20% to 30% market share in Canada.
“There’s got to be consolidation in the Canadian market because there are just too many LPs (licensed producers),” he said. “The question is whether an acquisition would be synergistic.”
Simon said he’d rather issue equity to buy an accretive company, than issue fresh debt. “I’m not a big proponent of debt…partly because I’m conservative and interest rates could go up,” he said. “Debt has to be paid back.”
Turning to the company’s second-quarter results, Tilray TLRY TLRY said it lost $201,000 or zero cents a share, compared to a loss of $99.9 million, or 41 cents a share, in the year-ago period.
Revenue increased to $155.15 million from $129.46 million.