Tilray Inc. cut losses and increased revenue in the final three months of 2020, as it prepared to merge with Canadian marijuana company Aphria Inc. Tilray TLRY, -9.01% reported a loss of $ 3 million, or 2 cents per share, after reporting losses of more than $ 200 million in the same quarter last year. The company said it was profitable on an adjusted Ebitda basis, producing $ 2.2 million by that metric.
Tilray reported total sales of $ 56.6 million, or $ 50.7 million when accounting for excise taxes, after posting revenue of $ 46.9 million a year earlier, or $ 42.5 million after excise taxes. Analysts on average predicted a loss of 14 cents a share on sales of $ 56 million, according to FactSet, with a smaller projection for Adjusted Ebitda of $ 300,000. Tilray and Aphria APHA, -5.15% agreed to merge into a deal that they say will create the world’s largest cannabis company by revenue, with the Tilray name and remaining symbol after the deal is completed. Tilray said in Wednesday’s statement that the deal should close in the second quarter. “These results required hard work and dedication and I sincerely appreciate all that the Tilray team has done to transform our business during 2020,” Tilray Chief Executive Officer Brendan Kennedy said in a statement. “Now we look forward to the beginning of the next chapter in our corporate journey.” Shares of Tilray rose more than 10% in after-hours trading on Wednesday, after shares fell 9% in the regular session. Stocks have more than quadrupled in the past three months, gaining 337% as expectations for the merger, as well as hopes for federal legalization of marijuana in the United States, have boosted marijuana stocks.