Tilray Brands Inc.it is TLRY CEO Irwin Simon said Thursdays “Cannabis initiate” this “Europe will legalize [cannabis] before the United States“
This is something that would have already happened if the war between Russia and Ukraine had not broken out, he added.
Addressing the topic of marijuana legalization, Simon agreed that it’s a hot topic right now while stressing that “everyone wants to enjoy a cannabis drink and listen to music.” That’s why he’s building a business around brands focused on medical and recreational cannabis as well as spirits, beer and wellness.
From its Canadian operations to consumer staples and European businesses, Tilray is about to have it all.
Today, Tilray is sell cannabis in 20 different countries.
“We are well positioned, we have a strong balance sheet, we have strong brands and we have an incredible management team,” Simon said.
With 12 cannabis brands, Pure water and Breckenridge brands through which it has established partners on both beer and spirits as well as established distribution partners with respect to its vsannabis business in Europe, infrastructure in Canada and 26 bonds acquired from MedMen Enterprises Inc. MMEN MMNFF, Tilray is well positioned for the wave of legalization, when and if it happens.
Tilray continues to strengthen its presence in GermanyWhich one is step by step towards the legalization of recreational cannabis as the government seeks to complete the process by the end of 2022.
The company is working with the German government to determine “when it would take to get the product” to the newly established recreational cannabis market and “what is the right way to do it,” Simon explained.
“They [Germany] will likely announce full legalization within the next 12 months,” and it would be “another 12 months before they execute it,” he noted.
Moreover, Simon expects Portugal and Israel to follow suit.
Fourth quarter results
Meanwhile, the company on Thursday revealed a Net revenue increased 8% year-over-year to $153.3 million in the fourth quarter and $48 million in adjusted EBITDA for fiscal 2022.
Following the closure of merger with AphriaTilray exceeded its original goal of achieving $80 million in savings by the end of fiscal year 2023 and plans to generate a total of $100 million in cost synergies from the transaction by the end of next year.
With an additional $80 million in shared savings, synergies, and the financial benefits over the next two years associated with the HEXO Corp. HEXO transaction, Simon said the company would be positive free cash flow in 2023.
“I’m big on money,” Simon said. “I am very committed to how we generate liquidity. In order to put the market at ease, you had to come in and give advice”, being one of the few companies to do so.
Asked about weak investor sentiment and stocks closing low, Simon took a stance that Tilray has does all the right things in regards to reduce business costswhether it’s a Freya, whether it’s Aphria/Tilray combinationwhether in progress transaction with Hexo.
“Everyone’s stock has been hugely affected,” he said, adding that the success of Tilray’s business was not reflected in his stock.
Watch the full interview here: https://youtu.be/4pHxQnrAaig