TLRY - Earnings call transcript Q3 2020

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Operator

Greetings, and welcome to Tilray's Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn this conference over to your host, Mr. Relations. Investor Gross, Raphael sir. you, Thank

may begin. You

Raphael Gross

Officer; thank Good Tilray's are joining Chief Executive on for quarter afternoon Brendan Officer. XXXX Chief today and third me earnings us With Kruteck, you conference Michael and Kennedy, Financial call.

and are during Act Before course differ the materially discussion, based States and amended. management of today valuation statements measures. Canadian the Please the XXXX of forward-looking today's differ refer issued to Commission those current Private of with the could statements statements. to from materially for the EBITDA and meaning and we On a margin, uncertainties or implied described United time detailed and as to forward-looking risks those beliefs make remember of refer actual Securities non-GAAP may results Securities will reports press cause our financial please within filed also earnings that which begin, that statements. management risks discussion any actual on could Litigation These are release from involve gross from in along Exchange in time management's with expectations Tilray's forward-looking the excluding and call, events that these and to expressed adjusted securities Reform adjustments, regulators, inventory

GAAP. to as presentation Brendan. call or measure company prepared the financial isolation to information release And accordance this with with of comparable is presented the substitute useful to reconciliation believes measure considered Today's in the contains of not financial investors, in information a accordance like While over that to to these are most turn I'd now, non-GAAP for non-GAAP measures information intended be press the financial earnings a the GAAP. in each

Brendan Kennedy

us. like Hello, I everyone. cover today. items thank for to three would joining you And

structure. have how significantly performance financial review our First, optimizing cost including I QX, from continued by will we to highlights our improve

priorities look as strategic of on finally, provide and discuss Tilray, XXXX Next, business. And to I will update and I we our state ahead the for will our an beyond. current next what's

backdrop, discussed focusing been at prior three businesses: to I've of growth Use our by our have during Tilray, realized COVID-XX. challenging accomplishments, has of on we on time, foundation, Adult done cost market As optimize International calls, and enhanced so, transitional against In work can Medical, team to same financial XXXX and our At which proud our profitable foods. Manitoba a strengthened structure mitigates establish we I'm returns. demand we ourselves a shareholder the significant better core doing and in Harvest aligned to challenging Canada industry a position that year earnings a have the year generate impact the has hemp leverage which

adjusted progress in on by our Based our narrowed encouraged results, We in as our loss are we QX current our adjusted EBITDA our compared QX positions or achieve QX. QX, us EBITDA to momentum both positive to breakeven of goal believe substantially QX. and we

sales in million, of to despite and efforts see our within as on clearly EBITDA better this million. from we improvement. XX% we measures. explain XX% achieved QX, our we reasonable of cost-cutting QX cutting impact with QX when growing to our than loss returns. Notably, $XX.X demonstrate QX. objective which this our in EBITDA remain for a I with where improved our As opportunities to revenues $XX.X And a more results cost $XX.X detail, have has of from $XX.X QX, compared a throughout improved or or loss now million, is Sequentially, reach. stated broad-based been invest We XXXX, loss have continue moderately is was adjusted accomplished will focused the in significant business and These million by adjusted million and in US$X.X loss top-line of

Importantly, cost sales balance growth leverage sheet improved without us future will adding to allow structure and our new significant SG&A.

reference, over approximately quarters, in short million quarterly $XX we of the XXXX a to over past roughly have two including SG&A, $XX remarkable million a QX For R&D reduced from time. our improvement period

lifting Although we optimize continuously the spending, opportunities will to evaluate now heavy us. behind is

market increased the making go. As as I cannabis leading of more the expansion distribution, growth; the pickup more enviable accelerating around world. through market provides way in environment an market. are legal tremendous we areas where USA the provider; stores. Manitoba number legal and have transition which a ordering, which on to three the products countries of become Canadian market, points of for and brick-and-mortar Medical, long have I current listed indicated, affordable that add the United adult and from Harvest come but to with and the quality still refocused value-added record a transformation a the heightened hemp migration to built to including and Foods, key for Hemp concern and business in a and our with products converting track CBD in platform This use, catalyst COVID and International us should safety has provides retail we to is other inroads curbside XX delivery accessible the be coupled the appears States e-commerce

sales each flat segments Medical discuss detail. were greater International in of let's QX. Now to compared these

marketplace, in setbacks. Although there was good unexpected the demand experienced market two the

cannabis to International four-week an in early was First, Control QX INCB, to due market-wide, Board, Narcotics there were imports approximately curtailed, or quotas. when Germany period

entering permits Second, Germany. to subject we were delays import COVID products administrative related for on

to recognize remain we Germany, and the and We our on able business potential in quarter, QX. particular. While EU bullish to the shifted competitive some some in activity position later in sales of these were

COVID coming due the volatile market However, reimposed remain may restrictions. EU in the to recently quarters

for continuing increases number with well writing are patients. of in to are both the prescriptions, these We number as as patients see who cannabis Germany of in the doctors prescriptions

Germany's similar that we four growth a small patient relatively Canada large are building in of base, given off to we brand we way are population that years to ago increases these base. continued see the believe and did and expect While awareness revenue effectively

believe that the operations In during have significantly long-term a complete. position In our European have regional Phase Germany to advantage to Tilray. commitments we made and compared Recently, Germany the our capture in well II in to with continue We Europe. broadly a at but is Portugal occurring market is construction seen us campus and XXXX. competitors faster pace share we will number for Portugal, a XXXX either team their The EU presence market fact, curve become cease and reduced Canada or to leadership Germany, in this we based in of adoption believe GMP more there. all, strategic

of world. climate Given of can be shipped exports international GMP the is to labor, cultivation facility that around has medical to annual a capacity certification R&D. lower our and year-round its XX countries warmer cost in cannabis, roughly and other metric tones With Portugal is cannabis our of that amenable for dried full hub

about we in France. our ahead, are opportunity Looking optimistic

that patients be including be will The X,XXX that companies We administered. recently that with the been cannabis how we'll of cannabis selected GMP. hear country's wait participate, and approximately to medical provides our medical complies able indicated experiment application, government their The pharmaceutical will the and will for have authorities be will standards submitting details the cannabis trial. decree medical to selected suppliers that have French one supply if on French the published as we

The in XXXX. first to are expected prescriptions occur early

the the future supplier experience can we be legally program for positioned Dutch how whether well is France. Cannabis supplied to be with is selected practices opportunity awarded, which We're currently We allow shop reputation to licenses possibility for XX will would Germany, our recently another that a The the Supply participating to in cannabis in applied Dutch Chain GMP the business believe experiment. called, be international as Given for and Tilray. The also us coffee establish controlled will program. The one be government the of for foundation we revenue established encouraged Experiment. Controlled determining have Tilray the and shops. coffee in is of This

GMP solid New continue benefit and pricing, and published results September vomiting profitable announced country phase continue cancer considered cancer products chemotherapy. we to in use if to patients Zealand XX, Australian The the enrolled. broader develop. to for in effectiveness trial patient committed preliminary we growth, should undergoing determine of Australia that X.X may of and and summary, On for in growth and XX pilot to in produced nausea indicating for certainty, to reduce of for cannabis our one will years with The III business. that trial clinical now determine sales Phase medical care. all are cannabis ran resulted gains and from In it with medical in stable more have which Our researchers much markets distribution study long-term vomiting the as a regulations Europe nausea be combat change participants routine to move the

Our early high-quality clinical the for approach and puts to products in emphasis manufactured government partnership a our leading produce data, the with GMP EU agencies, scale ability position. our EU, at in on cannabis us

we the is to the our market determine Board Medical best international new As what Advisory for and will opportunities are company. leverage presented, knowledge of experience

Canadian to Use. Adult now Turning

at agent, with several Our including of success focusing portfolio and resulted and our evaluating attribute have In can our approximately potency. the improving yields all XX% QX this we pricing, Kindred revenues new yields relative improvements, the the product, we segment have exclusive grow We how XX.X% to Relative have demonstrates market. are deeper to without and operations, This compared made our sales XXXX, value in been increased QX. as above XXXX, decisions, THC business X.X XX% on Ontario to introducing partnering our strategic our significant increased which operations. facility potency. up Enniskillen, our to of harvests

potential retail sales Our us depth grow existing both and to the and their of breadth established distribution and to force buyers leverage new Kindred partnership with has partners.

to continue we strategy to all in ensure offerings categories, evaluated we segments. focus appropriately pricing product our priced category higher our premium are While on

and offerings, vegan, vapes our Canica Our wholly Pineapple announced beverage complement deprioritize product we provinces gummy CBD with Adult Gummies September, XX% to addition six our owned THC/ impressive premium Natural Park, edible Cherry X.X Chowie our Wowie and now available in combined late in mainstream are ingredients, fluent Wowie our Chowie High business THC by Canada. are are value its product InBev. beverages using brand. company, of our currently QX. JV sold The in already array balanced available will across Sour ever brands. including be our Chocolates, Gummies Mango And Gummies offerings. newest THC under cannabis-infused to Anheuser-Busch Wowie product as to existing Watermelon gluten-free, under Marley and and the Chowie over mid-XX% gummy Gummies. QX, value CBD up Goodship and clean line. make In compared simple offerings Use of handcrafted and continue subsidiary,

We industry. products meet work additional and continue this to factors on additional introduce plan the consumers needs form that to Canadian growing innovative to of

is we pricing little or profit indicated, on and aggressively manage a continue As growth. focused long-term offers fighting the Instead, and value segment goal the strategy sensible gains not introduced segment we profitable, Consequently, our share Use that are margins with while product our market we product offering, of to rational in for no margins. potential. Adult offerings maintaining

XX% we year the During potency encouraged selling the products the so, our of to in At categories. of year, to we we're approximately the high XXX grown between to were mid- of estimating fact market, of that QX, count the we by pleased share X,XXX. end did store were beginning and have while our

of surprised growth range and Use the approximately This We Adult pleasantly have opened. high broader X,XXX for a currently count growth market the positive end in has our been and the both exceeded the Canada. stores with that of Tilray's evolution is

our growth will of We growth impact off potential revenue in Manitoba continued we QX QX. in and Adult COVID-related store are solid Coming Harvest prospects hopeful QX, also bullish Use any are on for QX slightly market a going the count was beyond. forward. restrictions for not negatively below

and as other this revenue profit to we initiatives. have we said view relatively business help predictable a As fund engine growth before,

are to have may but to on our drive effects continue they COVID-related consumer our products. distribution for sales, that behavior the additional carry about cautious and impacts retailers and We

negative is Our may and the hard to reduced from direct-to-consumer working team any grow broaden distribution we offset retail to the see impacts business traffic.

adjusted we with to head enable disappointed breakeven in see to us of we QX. XXXX the look We the positive utilization of gross and EBITDA quarter opportunities growth, forward improve margins, that New revenue results business deliver XXXX, in into As Zealand. will in and or adult recent the our vote final were

However, we remain optimistic.

strong York, Montana, with us An four additional In now domino on increases and the to the state additional represent worried product of of the to their from federal reach that cannabis. for D.C. and cannabis increases for we five Washington Tilray now it South XX of have likely plus constituents The believe state states provide and XX, Washington, case passed, cannabis New three legalized whose centers the will time. adult New in and medical use majority the cannabis as expand a Over saw are legalizing of we matter the of Connecticut revenue New taking the vote several to cannabis. the plus tax go have officials dollars election, brands serious measures United Dakota, D.C. possibility market Jersey, years, generate is use Jersey now number the from in acceptance see elected now Adult-use towards countries, from medical stronger to opportunities that the reform public purchase the of only legalization adult Jersey with countries next emerges a additional for XX, legalization residents we their Pennsylvania, thereby States, not Mississippi. and state. in a home states world. New effect to legalized number of will the The steps to of in states Arizona, legal XX around

strengthen For in trusted portfolio now, and states legally where permitted. we build CBD will brands our of

business, operating global conclude, will an Canadian across clarity CBD adult hemp. manner further entire global the market we federal cannabis, upon our We are and the medical from FDA. efficient address use-cannabis To in

industry. we the reductions, With and now structure poised this are significant one our cost we are our completion to the of cost of winners leverage ensure global in

Tilray developing ATM cash our strategy. availability the Kruteck, consumers to will our most execute With and turn have to with resonate continue financials. and and products building trusted I that, infrastructure our world. brands on we review Michael over the that the call We hemp With as focus established ample to in CFO, our in will cannabis to on company our place,

Michael Kruteck

GAAP dollars, Brendan Thank information with the note the all and this prepared otherwise we provide accordance on indicated. today U.S. joining and in you, thanks us afternoon. financial is was U.S. to unless call Please afternoon in

been and and get presented team expansion. like business, we core by cost in structure, to reemphasize reducing team The improving margins Before made our leverage that our managing growing details, Tilray safely progress year-to-date. into positioning the QX challenges and has has our company I'd remarkable successfully to the revenue COVID, future

have unprecedented have globe and experienced circumstances, focused responded staying delivering We results. around and financial by employees strong our the

Now to to flat million revenue same the some $XX.X details. last compared QX, year. was XXXX of quarter total

of meaningful surface, Medical sales was the all offset year. channels Use, recorded in our growth by robust sales, bulk Adult below to International products Medical Looking hemp our Canadian discontinue any however, decision which in were and last

to total sales, of in of compared million XX.X% last bulk entirely year XX% $XX compared the same the year. the million The as year almost decreased $XX.X sales revenue Including revenue impact in $XX.X to lack increased million. segment to year-over-year the to $X.X cannabis Canadian was period a prior bulk decrease bulk in sales, bulk of Excluding XX%. sales million sales the medical by decline included as period, current driven well in

current the $XX year-over-year. million On Medical Use the International sales or XX.X% million grew quarter, during while hand, contributed increase XX% to $X.X Adult other a

segment increased the Excluding of bulk Cannabis sales, revenue impact our XX.X%.

International focus expect opportunities. minimal, channels both As any, previously if Adult continued on and higher-margin indicated, Use bulk we in sales we as the growth and Medical

inventory in bulk us will it and sales where rebalance an cases certain opportunistic in levels of products. helps take on We advantage basis

a Use as expect our higher of and continue and than factors, growth the of start faster June to launch introduce Adult Cannabis to a Use XXXX starting a X.X are approximately and contribute recent our of XXXX, hemp revenue. outlets, including Use several Year-to-date, to percentage factor. review in to retail strategy. the in December reflect grow we for to our X.X XX% new rate at pricing Adult in the forward, products to Adult our total expected channel, growth attributable Going in our The relationship presence sales form in cannabis Kindred continue we to accounted sales products is of of improved

segment and XXXX, versus sales Adult QX, and Cannabis medical XX% in Use XXXX; at to Medical now is XX%, bulk, QX XXXX, to versus ago compared characterized XX% including QX, XXXX. and continues the mix year end in XX% Our year's XX% evolve in bulk in and XXXX, QX, and to compared the period, at flat this or Canadian by XX% XX% of XX% the QX, period International in QX, XX% ago in QX, in excluding XXXX; in year XX%

there million, bulk million in last cannabis period. last retail for bulk XX.X% year's greater same $XX.X increased As no of year. to promotional was Hemp comparable the compared segment QX, mentioned were increase activity large-format XXXX, revenue generally sales in XX% earlier, increased sales. due The revenue represented and while e-commerce in period $XX to to

XX% and the revenue QX other was mix revenue may QX, negative impact on last cannabis hemp, during XX% In and year. in our and ways despite XX% relatively our U.S. expanded CBD the Manitoba distribution expect to hemp-based provide forward unless is there growth growth, for on team our from year-over-year catalyst partners. to Going XX% cannabis cannabis products revenue explore deliver and generate to Harvest to can segment we hemp. despite XXXX sales mix for the was the QX, in XX% business growth continues the XX% Until more hemp business, COVID-XX and retail FDA Segment consistent have CBD a clarity compared our significant

XXXX to the consumer in able some offset ongoing million X.X% consistent sales The sales were we sales related to a sales increased in Medical Medical International increase approval activity basis, a due market decrease the sales, delays driven to primarily quarter. higher QX due was German quota indicated, to indicates from and $XX.X hemp a over recover were of behavior $XX.X sales use million XX,XXX which X,XXX sales. and import-export X% revenue XX% quarters. QX during XXXX coming was Canadian and the On we QX. to related in XX.X% XX.X% may sequential related COVID-XX the a trends, be cannabis As medical Medical primarily in this in to decline kilogram largely hemp This year. expect in discontinuation patient an these of percentages decline and QX. in decreased adult Canadian by a by which equivalent shift Recent to International was sales, Declines Total of decrease with portion during in X.X% QX changes. due delays of sold the the decrease to bulk sales. lost in year's attributed was prior in from The of an

per of $X.XX year. QX $X.XX selling price increase or period Our in from this our cannabis price in during was QX gram and from in the reported average XXXX $X.XX, XXX% a selling net an of of increase $X.XX XX.X% same XXXX the

a priced including the the in shift QX by did continued continued you $X.XX. to per transaction in potency year. price shift recall, been products, International the during growth increased which the in in and our reported The related period exist and due would QX the business, XX.X%. mix, to distribution selling a we one-time products net our Medical with our product of selling and not X.X same of normalized may Canada, last price selling sales QX in growth price figure, a channels As higher a increased Compared gram supply higher was had outlook, to settlement contract to the of have

to increase of expect to or continue time we up our average gram Medical price per our percentage as over remain sales International stable of Going mix. selling larger make forward, a cannabis sales

impacts cautious countries remain taking patients. the follow, are the optimistic restrictions our ensure on product and about potential European that While uninterrupted resurgence recent are the to Markets, to and given we measures of International supply possible distributors and whatever likely we COVID-XX of in to are the

transaction sold XX.X% same in the this this of period during gram increase QX was average from per cannabis XXXX during settlement in Please the gram gram, by $X.XX an cost cost of per the with a $X.XX $X.XX onetime year a QX in of was recall, associated supply and of bulk the skewed XXXX Our QX contract. per year.

year-over-year sales fewer the to is The due cost gram to to kilograms of transaction, the our lack onetime products and ramp growth higher Portuguese products, X.X per at $X.XX. QX fixed a the was Cannabis in facility, cost up of absorption XXXX any bulk of limited Excluding increase the we sold XXXX combination not due decision cost costs the while of starting buy to in our cultivation. attribute sales,

the This our previously buy and a reduce High attributing need we decision cost Park our produced indicated, made As adjustments. any future make decision stop in to Portugal to should product to inventory facilities.

our gram However, the on this products the increasing per also value. decision that had impact cost of and have do derivative flower

to facilities improvements at implement all process continue our to production We reduce costs.

our Our XX% have facilities. enhancement and to methods our have yields growing improved Park cultivation closure over Gardens by of the included at High that efforts

XXXX. As should absorption sales Use Portugal, including valuation our QX Park fully in future better and adjustments we as was Gross the online. our see continue Holdings we X.X% sales to at costs and and XXXX, and facility. last in grow High Canada Medical negative we XX.X% assets see XX% improvements expand International In as margin grow, during our we come period QX processing X.X our same compared cultivation in our offerings production year to cost anticipate inventory throughput Adult for

cannabis stock, of hemp use the potential QX related their took $X evaluation of demand or of million of all a a and year, review million of in exhaustive result thorough Approximately During products inventory. to $XX.X this an was the and charge we market. in

totaling Gross XX.X% of inventory inventory represented was which basis for will a XX% in made in margin for QX XX% supply leave XXXX, as was excluding and XX.X%, $X margin year event XXXX. ago period from adjustments, QX from future was period, and the a QX a increase of million purchase point a adjustments, us Gross $XX.X point a increase XXXX from valuation and to and with was year roughly XXXX an XXX subsequent to both other contract basis settle XX.X%. payment million. The terminated QX valuations The XXX contract commitments related our disclosed QX in the cannabis, ago increase excluding XX-Q.

basis. sequential we and excluding was per valuations ahead, quarter measures to a and cost to an in XXXX. to absorption, at overhead see XXXX in margins the decline to efficiencies lower Looking as-needed XX% in low-cost expect The better hemp, labor compared is costs quarter. Gross facilities, throughput QX our in gross from third-party XX% rate additional cost-cutting availability made expansion adjustment due fixed of year from margins previous of XX% on resulting our more and due operating supplemented by QX inventory the and the adjustments and ago supply

Excluding the were rate XX%. gross adjustment, QX margins

XXs, high XXs high we mid discounting to indicated, the and fluctuate margins mid hemp and of upon the and to activities. to previously between As depending timing promotional expect nature

to Moving expenses.

Excluding impairment a from million QX, QX or incurred of during XX.X% the quarter. year decrease quarter or charges, expenses were none XXXX, of which $XX.X in million operating X% and the total excluding QX prior $X.X XXXX, $XX.X million a compared $X.X million decrease to last there impairments were

as XX%. savings favorable These the compare we QX progress XXXX, comparisons even results reflect run expense rate reduction more XXX pace However, or our QX have in have of SG&A annualized which the we operating the in rate. combined if the cost costs, the million an $XX.X COVID and with business of of over resulted to to significant XXXX, are All significant reductions, in efforts began with million are savings hemp quarters environment leader were current not before savings run achieve the strengthening aligning date, cannabis million. achieve our $XX versus headcount we To efforts our cost response $XX our leaner pandemic. onset past net and in the company the QX a few XXXX annualized efficiencies, structure industries. on have and to and an more of to annualized implemented and efficient the position eliminated severance in made already throughout These during positions impact, our

look work hard and ways us, conditions challenging our to efficiency and optimize to this as to fast-evolving continue dynamic we industry. structure business While will for the is increase of cost we our adapt behind a

grow of while will and may negative the impact to any our generate sales, a segments. of ability we the quarters any our do our cost-cutting our focus not growth on Importantly, on implemented believe reductions moderately have over in three have distracted efforts last to

can track and listings Adult nationally additional the launch Use, new in throughout growth On our until products we expect the record, will contrary, in category products sales flower particular, we positioned by highest generate increased U.S. existing and proven invest and we established sales returns. have a Medical, X.X which the driven better of that expected continued to baseline believe In in CBD of International hemp growth products opportunities we now are a in we ongoing

positioned QX cost net $XXX.X improvement a ongoing XXXX XXXX. share We associated share million to was sales, for XXXX. loss or $XX.X per QX of As marked in outstanding do $X.X expect we realize million improvement to revaluation to million compared QX income million of now the a are volatility of the to experience and per $X.XX increase our net a benefits XXXX structure. Net new better to due warrants loss $XX.X $X.XX QX we the or the an This loss operating compared QX on EBITDA versus line the is and basis, loss was adjusted adjusted loss EBITDA reductions reduced was lower of attributable offering expenses $XX.X mostly was last a The to XXXX our $XX.X loss compared cost due primarily equity our $X.X QX EBITDA the efficiencies. improvement year. year. million EBITDA XXXX. mix. the this improvement in to The operational million revenue On to for loss million year-over-year loss completed and sequential March in QX Adjusted of from adjusted in with in the loss XX.X%

have EBITDA QX As end momentum goal. the quarters believe during focused positive or this on adjusted remain we XXXX, we breakeven the of XXXX by prior achieving realize indicated in to and

We program, representing our QX proceeds million cash the to access increased $XXX.X Turning equivalents $XX to the and an XXXX. balance, in plans sufficient included to business, for cash XXXX and $XXX approximately the million of execute of ended our balance have we QX XXXX. access believe our our our QX This end the and capital cash increase million, at million of from manage with $XX of ATM to capital sheet. program foreseeable offering efficiencies during Between future. and from we operations future ATM

XXXX and for CapEx million to of flow is million, Phase assumes the plus operating estimated approximately which CapEx primarily QX of needs need principal to completion impacts $XX approximately to approximately meaningful additional million, $XX numbers due assume $X to X COVID-XX, $X interest and in $XX of Our remaining million, year. cash of and of cash this Portugal payments million consists These $XX $X no million. million

XXXX shareholder by we As intend generating solid returns. allow significant leverage achievements our with we to look growth ahead, lower to will that base us revenue cost a deliver

legalized to cannabis. early opportunities stages cannabis in legal will we currently exist, medical of believe revenue opportunities while the in industry, more We and surface adult-use countries still are and/or continue the meaningful future

regulations. in additional CBD nationwide to the be the We on revenue opportunities once believe will provides also clarity FDA more there U.S. related

While emerging XXXX markets. and new in and for taken in has on our presence markets existing capitalize been to future enable a will Tilray, hemp year for and cannabis actions transitional expand opportunities the us

We on questions. in are the way and company. recognized now Tilray. are being interest Brendan your I cannabis for hemp you Thank take and your our available to well trusted most as to

Operator

comes [Operator Pablo with we'll this the conducting question Instructions] of session. At time, a Cantor first Fitzgerald. line be from question-and-answer Zuanic Our

question. your with proceed may You

Pablo Zuanic

you touch just quarter of showed mean drop sequential a we're data on right? market? for a I Good hearing the drop third The different the afternoon things, Can sequential showed quarter everyone. German XX%.

partly market? talk what because spoke You right, growth about us that your has in for market. also it. that terms But about catalysts being to accelerate to happen And entering in remind edge other about of then market, just in or that business

who also that. about You from parts, we're have other talking companies

there. that Thanks. to help edge for So, just then of a market growth reminder your catalysts key and the that drive

Brendan Kennedy

Great.

look population get XXXX, Canada we off the -- the steady. at in of Germany to population. market, the more growth much is XXXX, compare German is prescriptions in the a larger than back when patient in sorry, Obviously, base, So Canada them growth we'll double and

QX, to growth we'll issues set continue slightly we back Germany's regarding there. item confident see we're by so some In patient were And that INCB quotas.

the we product had we edge, to so had Germany delay some our When some of because for facility over scheduled four our GMP fact Portugal quoted, of was, so invested have as that from in about QX that, And think from we to cultivation Canada heavily the six-week Portugal, that have the to QX. facility EU, we processing so we and into EU. medical that we about and ship were in revenue and pushed Germany a in cannabis in a

also in such And so, Germany, first and cannabis as we've that countries such to quarter, the program been ship it Portugal us next not able give expect likely an that as to to only campus of product historically in in European -- their year, from will medical Portugal but France And countries half believe product here ship most hopefully, us to in this QX. from edge, Germany. gives we France we implement

programs. when look we think the and starting. that implement And over But two opportunity. so just in both countries we are will the begin XXX And cannabis a million economies long-term grow Europe, you the to EU Germany their and largest France, in think clearly, people, all at medical that's

Pablo Zuanic

may, follow-up. the THC I whether their raise brands. own think brands companies hemp awareness other their are to if But CBD use I market, understand there when to U.S. you for a strategy. CBD it's or beer trying And about products, just food,

and a they I right? would when U.S., they sell on can don't awareness, priority the more brand now, already brand Manitoba that's to Harvest not right, have Thanks. now? Do an we someday, think in as something that there. along or you something obviously, is supposedly, Is for that those lines also, long be using have right a be So right advantage term, think focused THC, or you

Brendan Kennedy

that It's Manitoba a brand has a Manitoba CBD CBD brand we do awareness a Clearly, think that U.S., in has on Harvest not basis. something great regular we products but likely most as the market and there discuss and is potential, Harvest it's do adult brands the the is big We The not our about what brand. will look think like. U.S. into in brand, opportunity but tasty question U.S., to long-term only the Tilray other the get use and the strong our model desire brands. distribution for eventual

Pablo Zuanic

you. Thank Right.

Operator

line question Alliance with Aaron Grey comes next Global Our the of from Partners.

question. may proceed your You with

Aaron Grey

for and evening good the thanks question. Hi,

reasonable the been kind profile, from of, of just value why fact of out the value the makes more focus Thanks. value premium going for within just just so you're is value of there the reasons to Canadian at the of the pricing, sense not into continues the able more you a given speak could terms the strategy there? has away product overall certainly kind shift of kind profit, just what or one is, or as just segment given kind to not kind you of margin on given to grow market, of much much me in but that get the kind the of, kind the growing to First segment

Michael Kruteck

for Thanks Yeah. question. the

our we've just to with Instead, grow that any we don't and high go but I actually at products, very some focusing the think market with an low we going we look ahead do continue as opportunity pricing products of there's particular with, and and the we new on for on selling batch we're capture of segment categories. margins. at significantly And well as think of that that that's us significant segment the that real potency to to as in and that have mid margin try the the the in the well us to We see premium products been portion value premium just both sector there looked now we've it to ahead a mid enter as go don't to quite with need market. that do market. opportunity for in the to

value we're costly thing I too and think just is just The to other segment, -- seeing significant chase it that price it. it's compression in

Aaron Grey

do that great. about EBITDA then that EBITDA to improvement profitability. All for And us margin kind profile second think Congrats color. on Thanks. the Where from that to right, here? one getting help just you next EBITDA think XX want over margin me I just closer quickly. go could of for to XX Thanks months?

Michael Kruteck

look now. I we're think about. know that mean, Yeah. right of as to we margin. make don't have I talked on of breakeven that the QX we we've delivering we'd positive got focused like that on EBITDA And still improvements terms the that you into I in a I But or the visibility to to XXXX. move forecast EBITDA guidance don't provide

Aaron Grey

Great. Thank you.

Operator

from the next line with Cowen. comes Our Vivien Azer of question

You may with your proceed question.

Vivien Azer

Thanks for the question. good evening. Hi,

a been So very balance lot Thank item. on uses all the broadly. getting my first you your just liquidity of your for detail and of I've is questions one housekeeping around a sheet investor much cash. certainly

but closing apologize I if your you to So missed did the I guys happen it, ATMs after quarter?

Brendan Kennedy

QX? After closing

Vivien Azer

Yeah.

Brendan Kennedy

No, we did not.

Vivien Azer

Okay, then Aaron. to question real is my great. follow-up a And

assessment am reprioritization landscape on will, market price to It's you of your pivot, are margin. I do done. competitive the a margin guys you Like your and you increasingly? have what portion So successfully? go segments sense you thinking you sell the pricing feel fully that as there? guys of about premium. from if everyone lot highest but kind a and are or you after Like competitors what's to So I of curious makes smaller portfolio appreciate a Like well-placed perspective, assessment wants exercise this for

curious that just inform the at all, if competitive how evaluation like all? position at of an landscape So

Michael Kruteck

Brendan, me do you want take start? you this? Do want to to

Brendan Kennedy

Yes.

we in value the year ago we've launched price as So thanks, about saw seen Vivien, segment, an it opportunity. a we because bet And that compression.

how Natural. out success We've see over We Marley plays long-term. are had the it waiting with a bit to

We the edibles category. to gummies topicals launched form additional hash it's to X.X in vape the new -- really continue in products will well new a in do we've factors gummy to in categories, from we'll QX, product, release and edible beverages, a whether QX. be of continue Chocolate, number QX

we see we opportunity, that long-term segment over to we'll as want so much that continue how pursue long and to a And the evaluate term. value

Michael Kruteck

color of little relative add also Yes. the a just I I'd mean, bit that segment. guess to premium I to

where I share. sit did price we space that think that capture ahead we so the in our be we some at we adjustments and to competitive can have in kind And looked of go space. make

benefit Kindred for many distribution of by aggressive a additional points now, retail a relationship when our just that's being for with we pretty we think look opportunity we at of we exist as not in be locations are we getting a in as it, I we're us. segment And like the where the could probably that's and opportunity that places right feel still on lot of basis. so in there's currently us higher-priced don't good and

think space. look in So sense that we'll the share where on win keep on a in focused of don't not in to just market there we're we value work it's still there, trying particular of segment, to our capturing And that growth sustainable. share fair but presence market a

Vivien Azer

Got you. That call you. distribution out on Thank incremental points helpful. really is of

Operator

your comes proceed Graeme Capital. Eight with Kreindler, Kreindler from of the question next line question. Our with

Graeme Kreindler

where to of those adjustment the disruptions and us were questions. international experienced what is be, for Could that made my be comments good you regarding been? there the possible? import of afternoon outlook and might bottlenecks market now. you now specifically facts it quarter, some disruption regarding the in Would Hi because have based the domestic growth outpacing any Yes. right the give shipment taking have follow and in the right you I if the delays. would you. I'm international period those on QX I those wanted outlook thank Thank in based the revenues on permit you revenues terms magnitude have it? international of didn't restrictions wondering, or the was the exist the sort wondering And up on of on

Brendan Kennedy

So our -- thanks, international Graeme.

delays compared sort when been medical market in not Medical to quarter only see the Canada. in in And has that at The market onetime, will a Germany, I significant place International a is Medical opportunity delay longer-term delay as the INCB one exceed and growth international that growth took that Canada? size quarter a between of International that of market delay. but one QX as we the and look Our QX,

Graeme Kreindler

on actually that's part when just difficult Canada, outstanding, what's You remains Portugal then now. timing I being else a you some that? ground it's in what as equation pin. efforts milestone construction mean Thank of Is of here on you part and for here of you've in What Europe? when you. could blocks on follow-up milestone generated about on understand the point? that right education And hit But to ultimately in building talk the real comes the to that Okay. assume to steps to capacity? would a about it here. behind exceeds, really linchpin the are appreciated. in marketing what point out is and that, the a and maybe be the it lay that sales I would What had get That inflection

Brendan Kennedy

Yes.

patient be in I think Germany the two drivers France. growth are going to biggest and

people in think, there Germany XX I to in people size roughly will in we that France. year. So first the we first next from year were hopeful And is XX product Portugal has, the million half market quarter of and the ship next France of million

And So and guess XXX to is the see not million. right. countries for those take legalize it not – following how medical XXX France that's XXX on long to legalize. there was really that of Germany [ph] used math XXX, and will other we I roughly doing the I cannabis behind countries fly, carnegie opportunity all –

I we'll cannabis possibly legalized it, of EU course XX see let's months. next, think call over the entire medical-use that the the for

need and doctors we see cannabis to EU. medical as medicine. regulatory the need change so And We embrace see in pharmacists to

EU, how at grow. in the COVID, of driver but would That real because growth, the answer count the going for key patient will be fewer of of yes. to see terms the their patients. COVID, exceed, likely, to acquisition, QX, is terms doctors In – indication going quickly unknown is in to X,XXX be of how look Europe, it going I'm France quickly good only rest that patient if for think market patients are how in the a not quickly I of one

And environment. focused our number the in reduce a And Netherlands. for so in is growth of throughout I growth chances think Europe XXXX in may legalized that am on from of medical. what XXXX. and it really a about see Adult be will all countries And I Use optimistic would we this non-COVID do

Graeme Kreindler

developments the Thank value, in you. in – market ask do When more talking one of I'll you're the terms follow-up And maybe you regulatory potential about reforms that. see further States, particularly catalyst potential as on a as the medical those that just you in reform wave a two look Thanks. things? you cannabis for unlocking at of question United in another? to of Europe markets exclusive the Do side of EU, see one being or do

Brendan Kennedy

change really EU. cannabis medical I in I being think look at the another. drive don't will markets medical the one U.S. as in from change any candidate exclusive those

Australia, It's campus think medical Europe purposes, export point, medical medical opportunity the like in cannabis export countries Canada to Zealand, from Portugal argue from potentially to medical or the and cannabis be could could that to might there Canada change You such just to some New that at we Germany, as in not an from for change States. U.K. United in Portugal States absurd cannabis drive United

Graeme Kreindler

Understood. Appreciate it. you. Thank

Operator

Capital Scott with Partners. ROTH comes Our next proceed question with the of Fortune from Please line questions.

Scott Fortune

Good afternoon. Real quick.

expanding, and are then Novartis call can side the in will in in your leveraging business? of you And follow-up kind there partnership think you your that up Just launches that of on Europe? leveraging and partnerships of countries kind you expand ramping Europe for other the out of

Brendan Kennedy

a we -- world. partners in number We sands our besides have of a use number division the around countries -- of relationship different of use Novartis. pharmaceutical the with We a

Mega Croatia. Germany. use CBC So, a Latin a Nevada, New Lab, private brand, we in in use agencies partners We in dozen Solco government partners Australia, and different Hypera import We such Zealand, from pharma our from as PCI loan there. to America pay a in in half with in Germany four countries some Phoenix partner

countries pharmaceutical build the to in continue with around we relationships partners individual So, world.

countries of the We continue to have registration world. a in healthy product pipeline around

to anywhere we basis our an from looking dozen pharmaceutical a for a in a So, in product product countries on oil export sorry, Canada on half based whatever it individual are it's can whether we're our of of regular from a dozen so anywhere registering -- individual flower Half products. Portugal, additional two that dozen or distributors and products countries. from

Scott Fortune

then Okay. real And quick follow-up.

continue kind XXXX potentially come that clinical going the Are of to in or here? of you going data to the drive are the studies side looking how kind medical we out the forward business to study at done? more You've see of clinical study in

Brendan Kennedy

II a We Australia Phase and III. move from to trial in are. We saw Phase clinical

XXX -- I believe remember I to of Phase away but II So XX trials, more range can't two slide about and entirely in I clinical seen COVID. than than somewhere in to is We've the III number, and exact its XXX. think Phase XXX. more our of XXX patients was due the a U.S.

York have -- So they recovered from a slight it in was patients had of -- of those research But that in institutions recruiting the initial U.S. delay in COVID. middle delay. the New

those So two we a may coming in U.S. XXXX. quarter out see some of trials delayed of by the data

Scott Fortune

Thanks. color. the for Thanks

Operator

from Hickey Our The Mike the with question Company. line comes Benchmark next of

You with question. may proceed your

Mike Hickey

so for and I can speed Michael. guys, on questions from. me got and the three I've squeezing think thanks pretty Brendan, they're quarter, Michael, Hey, that Brendan Congrats you on. small

cannabis terms that Canadian conversion maybe remind in would is selection. possible thought, illegal the it's maybe I was be of not hoping of much us one, size you market. and sales obviously -- of and that I of could Just that the market market, what market while you're COVID price market the of black still legal that the black to seeing location how

at XX%, based the lot. market look through and August. was I XX% XX% U.S. you mature. that a at It the considered in expanded you're second year-to-date Colorado look Brendan, Boulder, you one, The know Michael,

And So yield, the That's significant, market mature, in your when with possibilities of market XX%. -- pretty growth growth what you was the originally does about sort you about tell in growth a more pickup curious that considered or potency. you see in growth Canada, market than that market? home high double-digit of lastly, that thought accelerated

had results? of is remind If guys. your strong of If Corporation team any changes doing who there? your you’ve or what sort you those Head exactly on Thanks, get can us you're to

Brendan Kennedy

Great.

your question was the the size So of first around market. Canadian

sales -- that in I were overall roughly that I in range. $X is going market was ago listed $X market and sized, the -- somewhere think legal billion years believe saw size the wins the XXXX I that billion the XXXX to range. The few the $X.X retail be a market Canadian to billion

to it's I my think $X $XX in really it's -- is Canadian be guess million. mature likely million a to market,

years. And so, -- growth take possibility to It's one and will a next, really to opportunity two. the one $X.X of let's two a billion. doesn't roughly from in question question to it, certainly is us -- about XXX% question call the Canadian there's mature The course $X.X way the billion over to market tie of one thinking be,

And fully mature of Canadian market? dollars. a like XX% think in question we the total you in CADXX if market XX% Canadian Canadian the illicit. so be versus think illicit will does the I of legal being market million about pick, on size billion the market what look the $X.X let's got

of regulated get to I where illicit XX% XX% -- to Colorado, XX% market think legal is stage like we Washington and a the State is the the XX%. market can to market

market like essentially mid-term. upside over does illicit still So where to now, The Washington now, from question where now, short is more or California, out, two the three has be five and a the years Canadian the been look from like market State, Colorado stamped will years in tremendous thriving look from Canadian the years and illicit there there's the market market. robust does it still

a the growth how compare place that's think so a still and Colorado like long-term we you significant it see where opportunity on about And to basis. year-over-year

takes XX% job THC. cultivation, is the In an facility, Cultivation, of its last Kristi, terms of potency. dial it's that we And at fine of -- out product unique these products, Ontario and maximize girl takes the all that above Enniskillen temperature, to have Head facility a in. and a dial little then were one while figured actually, tune different compared yields Gary variables, machine. to all-in, it in year. it COX Almost a of of of Brooks, that amazing all how facility. coming in soil, nutrients, a pumped And the it's we to our humidity, Slovak. to you're all has And out our team facilities in and while order the up we François each XX% is maximize yields to It whether does -- She that of right,

we've costs. what accomplished both the our there to So improve decrease of of hope to and we're our quality continue continue to potency and products proud the and

Mike Hickey

Good guys. luck. Thanks Nice.

Operator

Our next Andrew Stifel. from Carter of question comes the line with

You may your with proceed question.

Andrew Carter

us is that you purchases quarter. Hi, Appreciate negotiated the last location tick thanks. write-off. or the the the evening. and Could kind with plans? guidance outlined million cash million $XX to $XX within the non-cancelable in says of it I part assume there's for want because the how was Good just cash understand that of what's or Q quarter, I happening help kind check of inventory flow next you

Michael Kruteck

in hearing really details to So answer Andrew, the all hard time you your at understanding I'm question. the question of a happy

Andrew Carter

non-cancelable Could in million the Q? $XX you sure, Yes that? hear inventory in payments

Michael Kruteck

Yes.

some to to can continue done favorable on So negotiating longer favor. of ourselves we of portion we in I ahead get there place. into with our in contracts, we significant a remaining job And work contracts out are think, that we've go what We've any a a position are good not of necessarily do mean those. term and got

one to we on continue forward. at can we going of -- it's and we've look just we're it, So we what and do those success, things had focused

Andrew Carter

all I Everything the I second times Canadian talking I And is I be significant don't And in this the to here. here. mean, call to like you on guess, is right is, guess the income first get this question the insider understand Thanks. Okay. to what XX% XX% of have that we LPs I the which the fundamental is, the sales the speaking this could And adjusted for in U.S., hear is longer. put win taken of other of why from pretty template. an investors has with affirmation here. guidance I and guess question this and kind specifically, I U.S.? cascade don't mean terms story and was the been on platform I'm about

I required? pass about So on. would could will U.S., towards you talk of the what be investors confidence your how put kind investing in Thanks, or which you

Brendan Kennedy

Andrew. Thanks,

X the segment would with this I categories. opportunity that, industry think I into

alcohol -- over opportunity, grow industry internationally past XXXX, since the the seen have We distributed distribution be will tobacco, distributed answer early like Canadian the and long chocolate or weather like will we XXXX, a team like long-term distributed and locations product about the we've very think then this can right it's like model? When to brand term, the in but not several distributed not is win more current in the U.S.. tobacco, like seen I the medical we while be question executive a a The I U.S. I think using adult throughout distributed operating question MSO on years, Will it's model Harvest. be that's it U. successful portfolio focus market other more And strategy, products MSO Will have the Most is positioned, in this been the U.S., products have huge company. there's distributed existing product in U.S., U.S. like LPs less on the like when And be use days. is, determines think in we look like of medical the category the a U.S. built is adult-use is that think to million don't The do have our on that the product we Europe, well. similar real U.S., much more distributed besides the And I think term, more the if an will be is U.S.? on medical not that at have to model. feel I'm long S., strategy. distributed like I opportunity, well to opinion question the there. it U.S. really focused Manitoba than as Europe that there's our be know long-term And and the Canada. cannabis -- the that beer? retail clearly MSO we're I the up the or XX in more I the the of well of XXX be happen part side, third I channel a chocolate is where current that that better how in the like current that of drag the MSO our people distributed the medical in million in that's CBD real I people product in a product positioned like side. on I positioned I in think product earnout where based

Andrew Carter

Thanks.

Operator

Mattson Our the next question Glenn comes of with Ladenburg. line from

question. your You proceed may with

Glenn Mattson

realize you for If well questions ATM, guys your what it said just the sheet give idea question balance or Thanks. far been goes? Hi, I you're plans She answered. positioned it quarter. feel going said, And that's referenced. use to you as can Vivien you my of quick that's think just intend as to late, like it, us if me. are a just you on the continue forward? But you the of I an tapped hadn't and the since But have end of most thanks.

Michael Kruteck

go raise Yes. Thanks, things in use ATM, will an Glenn. those and in suits to to just continue opportunistic at time kind appropriate, go one it's we at and when go the – way continue of and We that look and the we'll ahead and And to as when capital. to seems balance additional cash. us it layer points we'll ahead strengthen of for I sheet, it think us ahead

Operator

comes line Our Kirk Partners. from Bill next question MKM the with of

your with proceed may You question.

Bill Kirk

without were guess leverage. slowed increase Canadian having how growth ripe return can guess, you looks confidence question I a because share So you're my Canadian sales and market re-increase for your with kind of you does So is, region stagnant? what spending, cost with structure spending? or gives it on spending share But get the I and to

Michael Kruteck

take a and to ahead where missed things. go that we've stab think asked our questions the ahead indicated the I Brendan, this was one things, of at of I I'll as go some But and in pretty an distribution one I opportunity I first, then So got fill significantly. expand and in earlier,

that over gone that's – between and because into we've we partner, So exercise, Kindred we've – Tilray. our of QX as through over on in we I And XXX ahead with went the go the we And we’ve by got products. had working got listings. XX increased. internal when think in earlier, QX I our and working the reach field. the that cost-cutting were XX marketplace out we added ahead we moving of alone, people XX salespeople indicated to as new Kindred, in for enhancing think And the They're basis listings got and October,

of one variable ways just that that's cost think I a so the And and that's we -- for us.

And benefit, we they so benefit.

really impact structure that that forward. has think don't I going the a so significant And cost on

The that ahead, brands. terms we're is in focus other and going of thing narrowed we've actually our our

we the we when guess us that nicely say dollar in brands dollars And on win sense in at the think And us. for opportunity fewer the of would I are in are, we of terms focusing Canadian growing forward moving so that -- making actually another that's I more for those we now. where marketplace. same pretty or And are look we

forward committing think pretty we certain particular will the that, of this we without And as promising that some quarter I results additional into seen looked into categories. And will go XXXX. in good had in at dollars. think we into QX. We've continue in continue really we momentum, that beginning QX, and

Bill Kirk

Thank you. Super me. helpful. That's it for

Operator

with Our Rupesh Oppenheimer. comes the next from question Parikh line of

You proceed question. your with may

Rupesh Parikh

Good for in. fitting me And afternoon. thanks

guess efforts. your Cannabis I back just going X.X to So,

comments. give did color the in some You prepared

to, priorities? as And key far? some already what's So, expectations your we gone your and then look are what I well as what's this of look maybe next happened that curious maybe guess, areas year, just towards year, met as have you

Brendan Kennedy

Yes.

in different gummy QX, launched products. forward, Tilray we two Looking

will to as CBD Canada's a So, mint now QX. quarter, every third launching every we product Gummy entrance -- a XX the expect a hash which is products to this as chocolate Every vape topical nine little We've further this provinces. our product selling in our and with anticipate additional gummy few in entrance quarter. CBDs one we out, seen beverage, number in again QX. emerges launch tea into segment, A launching

the really so think success a In across And good products, board. we X.X got we've lineup. seen we've

market faster, I in we factors relation if something were that as to have form we question, and to to we crowded There was vape expected, fewer concentrates. think in products non-vape of we would -- more I non-vape more was X.X in West innovation terms brought categories change of anticipated. edibles, launched X.X would your but actually terms than have product in X.X categories originally in

have a we initial launched would And and more so a back. changed our held few I strategy the product that bit of

Rupesh Parikh

Securities. line Mike Okay Northland question with Our Operator: comes from you. Grondahl of next great. the Thank

with may question. your You proceed

Unidentified Analyst

Mike. Hi. for This for question. is Michael one. one quick Maybe taking just on our Thanks

On give Use the there year-over-year, extracts you versus Adults revenue an us the International? mix idea just was growth from can what

Michael Kruteck

the you're growth? revenue I'm for extract sorry, asking

Unidentified Analyst

Yes.

Michael Kruteck

between rec the Adult, difference and international? the And

Unidentified Analyst

Yes.

to two they kind the and those Just between difference mix of contribute how that?

Michael Kruteck

I've flower I in got got extract rec. Canada mix international to have compared of the don't just so comparison that don't I've I've it of to necessarily things, got the Germany to the of terms Canada. side the on Well, but of terms But in I -- compared Canada think

I So comparison I But you on -- with have want follow-up handy. do you just can that don't one. that

Unidentified Analyst

you. Got

Operator

Michael Our Jaffray. next with question Piper comes from the Lavery of line

your question. with proceed may You

Michael Lavery

evening. Good you. Thank

on on Just one quick follow-up thoughts the your U.S.

like you to the the for, good wait But you legalization alcohol into in to it model market think how a it that another. whenever some hope to if not exists form permissibility tobacco model? state-by-state more or rather some market comes, expect and distribution make would right and entry would be or something to that on any how given today, will or that's color evolves than you till try obviously, rather You've current evolve similar assume

Brendan Kennedy

Yes.

competitors way on the continue market for a on evaluate on NASDAQ, our the U.S. similar a obviously, opportunities those on have, way to in continue to basis. we C to Based options have. but do dollar, U.S. we're evaluate Corporation we being prohibited the U.S. that listing MSOs evaluate entry regular from So the entering our potential that and into based -- options and U.S.

will to of use I think distributed medical U.S. that be products, the continue adult we both terms will in more clarity see cannabis in and how

export In terms countries other into of opportunities medical, from clear we do the think U.S. we to have

In terms we of would use, distribution the that a market. would more little the adult to U.S. enter model severely use drive the into path in clarity

Michael Lavery

part for see up you're part and to before big some I really you of wait and against guess, a decisions, know just make is most it. So the what have a

Brendan Kennedy

about That industry ago, in right. be should morning. saw XX% years That this started Today, optimistic thought adult the this number use. I'm of was in When it's the of as XXXX. of that XX% I back U.S. for Americans I cannabis XX -- legalized --

pretty than significant and XX%. growth So it's more

clearly of legalized, that in the this of be I public terms think so opinion. believe Americans change XX% medical it's and

we'll that And was the think that election cycle. Republican think ballot I this senators. see undefeated I Cannabis measures. five

drive a that's Republican state Now would senators cannabis. you represent constituents Senate. legalize additional the now they how five And in where change U.S.

Michael Lavery

you Thank helpful. That’s very much.

Operator

with of Jefferies. from Our the next Angad line question Dhamija comes

proceed with your question. may You

Angad Dhamija

in had Germany. one just Owen I Thanks right Sitting evening. taking for for guys, Hi, questions. my on now.

over is selling a sense the there. price get for And how about there, wanted and helpful? be Just implications trajectory the over competition quite that near-term available seeing price to building if any the that up will on has you're there

Brendan Kennedy

price? on Michael, you start

Michael Kruteck

Yes.

yeah. So --

in terms in we're oils say, let's we're seeing relative there, the Germany, some to and of price are that in guess, prices some So things pressure price, the of I on stability flower. still seeing,

for take what in Although general, we to QX. that some we flower able I at that our us, least on say will in saw pricing were

able points single-digit of the growth relatively were so to there, roughly we is pricing we up share. we stable. and the XXX increased do picked over also oils and we QX, prescriptions of What actually market basis it saw was terms for that And in

a the at from obviously, a good competitive holding growth, continue pie which think so And opportunity own, growing that perspective, we and I is us, we're see our for that. to

ahead pressure, the but that a seeing. -- -- think seen that would say to QX. we and go of I little And some we're price I So that's beginning bit were prices generally what the have increase from able we but year, in we're

Angad Dhamija

Okay. Thanks.

Operator

comes line Sam next question from the Gurwitz of Our with Carronade.

proceed your question. may You with

Sam Gurwitz

answered previously. was question My

Operator

question-and-answer back we today's to Ladies for the end closing of would like remarks. Brendan have turn call and I gentlemen, Mr. the to Kennedy reached over session.

Brendan Kennedy

you interest team hemp. Tilray people's and Operator: dedication We for quarterly wish conference. for of you joining power conclusion, to you today's Thank your our on their This to you. all In and work us lives in of to thank today. good Tilray, cannabis mission our evening. concludes our call participation and appreciate a Thank

may You great you for participation. disconnect Thank lines a your evening. at rest your this time. of your Have

Tilray Brands (TLRY) 9 Nov 202020 Q3 Earnings call transcript