Tilray Brands has quietly abandoned its pledge to achieve annual revenue of $4 billion (5.3 billion Canadian dollars) by the end of 2024, with analysts now predicting the North American cannabis producer will fall far short of that figure.
The company’s management no longer guides for the target, Pablo Zuanic, managing director at New York-based investment banking firm Cantor Fitzgerald, wrote in a note to investors, citing a conference call with Tilray executives in January.
The analyst said Tilray’s target was undone by “delayed” legalization in the United States and Germany plus ongoing issues in Canada, including price compression, overproduction and slowing national sales.
The Leamington, Ontario- and New York-headquartered business isn’t the only cannabis company tripped up by delayed legalization and U.S. reforms as well as other difficulties.
The industry is bracing for a challenging 2023.
In the U.S., Colorado-headquartered Akerna Corp., the parent company of cannabis technology company MJ Freeway, said last week it’s exiting the marijuana industry.
Also last week, Massachusetts-based multistate operator Curaleaf Holdings said it was exiting California, Oregon and Colorado.
In Europe, Colombian cannabis firm Clever Leaves announced its plans to exit Portugal.
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