Leamington's Tilray sees shares surge after merger with Aphria

Tilray Inc. shares surged the most in more than five months as investors rewarded the cannabis company for profiting even amid challenges due to Canada's COVID-19 restrictions.

Net income was $33.6 million for the fiscal fourth quarter ended May 31, compared with a loss of $84.3 million in the year-earlier period, while earnings before interest, taxes, depreciation and amortization almost quadrupled to $12.3 million, the Leamington-based company said in a statement on Wednesday.

It was the company's first quarterly report since it combined with Aphria Inc. The company employs about 700 people at its Leamington facilities.

Executives anticipate being through the worst of Canada's lockdowns before the current quarter ends on Aug. 31, though the virus remains unpredictable. Because hundreds of dispensaries didn't open due to COVID, more people bought cannabis online, where regulations severely restrict companies' ability to market and consumers opt for low prices over specific brands, Tilray's chief executive said on a conference call.

“Considering the challenges of ongoing lockdowns in Canada due to COVID-19, we had a strong quarter,” Irwin Simon said in a phone interview.

He also emphasized that the company's cash position — $488.5 million — potentially enables Tilray to pursue acquisitions of other cannabis companies that could help it enter the U.S. market should the U.S. decide to federally legalize marijuana.