Sam Boughedda

Investing.com — Monday’s report by GLJ research stated that investors were to be informed of the following: Tilray Inc They would “aggressively add to short positions” in the second quarter, raising doubts about the company’s financial statements.

Tilray shares rose 12% after the earnings report.

On revenue of $155million, the company’s cannabis-lifestyle division and consumer packaged products subsidiary announced earnings per share at $0.00 

Tilray’s Chairman and CEO Irwin Simon commented on the results. “Our second quarter performance reflects noteworthy success building high quality and highly sought after cannabis and lifestyle CPG brands. This, combined with our scale and operational excellence, allowed us to increase sales, maintain profitability, despite sector-specific as well as macroeconomic headwinds.

Despite Simon’s positivity, GLJ analysts Gordon Johnson and James Bardowski said their read on the company’s fiscal second quarter 2022 “reveal a company teetering on the edge of disaster.” 

Analysts questioned reported revenue growth and claimed that revenue fell 14% versus the 20% reported by Tilray. According to the analysts, “surprise profits” were entirely attributable to non-operating factors (i.e. the stock plummeted 26% over the quarter and the Tilray warrants embedded with convertible debt were all set to a significantly lower market which resulted in an accounting profit of significant non-cash).

Tilray was given a reiterated sell rating by the analysts. Tilray’s share price currently trades at around $7.20.