TORONTO (Reuters) - Tilray Inc (TLRY.O), which listed on the Nasdaq on July 19, rose 3.9 percent in after hours trade on Tuesday after reporting its second-quarter revenue almost doubled to $9.7 million (12.66 million Canadian dollars).
Net loss climbed to $12.8 million in the three months ended June 30 from $2.4 million a year ago, on increased operating expenses from the company’s expansion at home and overseas and higher compensation charges, the Nanaimo, British Columbia-based company said in a release.
Despite closing down 3.6 percent at $51.50 on Tuesday, the shares are trading at more than triple the company’s initial public offering price. Tilray is on track to be the second-best IPO performer in the United States this year.
Investor frenzy surrounding the sector, which had abated somewhat earlier this year, has picked up again after alcohol producer Constellation Brands Inc (STZ.N) said it would invest another $4 billion into Canopy Growth Corp (WEED.TO), the world’s biggest cannabis company.
Tilray said total kilogram equivalents of cannabis sold also nearly doubled year-on-year in the quarter to 1,514 kilograms. The average selling price per gram rose to $6.38 from $6.20, driven by sales of more potent product and extracts.
Tilray on Monday announced a deal to supply Nova Scotia province with cannabis when recreational sales begin across Canada in October, adding to agreements it has already signed with Ontario, British Columbia, Quebec and Manitoba provinces and the Yukon and Northwest Territories.
The company sells its medical marijuana products on its own, with partners or through export deals, in countries including Australia, Germany, Portugal, Argentina, South Africa and Britain.
Tilray remains 82-percent owned by Seattle-based private equity firm Privateer Holdings.
Reporting By Nichola Saminather; Editing by Marguerita Choy