Tilray CEO Brendan Kennedy said Tuesday that the company now believes Canada will reach a supply balance in the next 18 to 24 months. In mid-March, Kennedy had estimated the country would be in oversupply over the next 18 months.
The Tilray CEO said this with the publication of the first quarter financial results. The total kilogram equivalents sold increased over two-fold to 3,012 kilograms from 1,299 kilograms in the prior year period. The average net selling price per gram decreased to $5.60 (C$7.54) compared to $5.94 (C$8.00) in the prior year period. The average net selling price excluding excise taxes was $5.28 (C$7.02) per gram for the first quarter of 2019. Read the complete results here.
Ramping up production
The industry continues to struggle at ramping up production in the current regulatory environment, he said during a conference call with investors after the company released its first-quarter results.
Tilray said it's seeing increasingly high demand in the domestic market and reiterated the company's announcement last week to invest US$32.6 million to increase its Canadian and manufacturing footprint by roughly 18,860 square metres across its three facilities in Leamington and London, Ont., and Nanaimo, B.C.
The company is proud of its most recent quarterly results despite these continued domestic supply constraints, he said.
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