TLRY Stock: Tilray Receives New License From Health Canada

Tilray Stock

TLRY stock continues to decrease despite news that Tilray (NASDAQ:TLRY) has received a new processing license from Health Canada to expand its manufacturing capacity at its Natura greenhouse, which will allow the facility to produce a wide range of cannabis products.

Through its new standard processing license, Tilray will now be able to process cannabis raw material cultivated on site—as well as raw material sourced from other cannabis licensees—to create a variety of value-added products including oils, topicals, edibles, and tinctures.

The company’s additional flexibility in developing and manufacturing novel products will position it well for the legalization of edible cannabis in Canada later this year.

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TLRY Stock Continues to Drop

TLRY stock price has continued on a downward spiral this month, dropping almost $15 on the Nasdaq exchange despite releasing positive financial results for 2018. The company’s revenue increased by $43.1 million, up 110% from the prior year, with a particularly strong fourth quarter that went up 208% to $15.5 million compared to Q4 2017.

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Still, the revenue growth wasn’t enough to compensate for its losses. The company’s year-over-year gross margin in Q4 2018 dropped from 57% down to 20%, with the increase in operating costs causing the net loss for the fourth quarter to reach $31 million.

Will Edible Legalization Give TLRY Stock a Boost?

Although the legalization of edible cannabis in Canada is still months away, it will likely have a positive effect on TLRY stock when it does. This new license from Health Canada at its facility will mean the company can produce a variety of products to appeal to the edible cannabis market.

Tilray has already managed to generate a ton of revenue from cannabis extracts, with 49% of its total revenue in 2018 coming from these type of products. This is very encouraging, especially considering that cannabis oils come at a significantly higher price point compared to dried cannabis flower.

By 2:20 pm on Friday, TLRY stock was at $65.48 USD, down $0.46 (-0.70%) on the Nasdaq exchange.

>> Read More Tilray News

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