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Report on Business Shares in cannabis firm Tilray Inc. soar after it reports second-quarter revenue almost doubled

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Shares in Tilray Inc, which had its IPO on the Nasdaq on July 19, rose 3.9 percent in after-hours trade Tuesday after the B.C.-based cannabis company reported that its second-quarter revenue almost doubled to US$9.7-million.

Net loss climbed to US$12.8-million in the three months ended June 30 from US$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 company said in a release.

Despite closing down 3.6 percent at US$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. The shares went up to more than US$58 in after-hours trading.

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Investor frenzy surrounding the sector, which had abated somewhat earlier this year, has picked up again after alcohol producer Constellation Brands Inc said it would invest another US$4 billion into Canopy Growth Corp, 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 US$6.38 from US$6.20, driven by sales of more potent product and extracts.

On Monday, Tilray announced a deal to supply Nova Scotia with cannabis when recreational sales begin across Canada in October, adding to agreements it has already signed with Ontario, British Columbia, Quebec and Manitoba, as well as 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-per-cent-owned by Seattle-based private equity firm Privateer Holdings.

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