Tilray Brands, Inc. Reports Record Fiscal Year 2022 Results

FY2022 Net Revenue Grew 22% to $628 Million Compared to the Prior Year; On a Constant Currency Basis, Net Revenue Increased by 29%

Fourth Quarter Net Revenue Grew 8% to $153 Million Compared to the Prior Year Period; On a Constant Currency Basis, Net Revenue Increased by 14% to $163 Million

Company Expects to Generate $70-$80 Million of Adjusted EBITDA and be Free-Cash Flow Positive in Its Operating Business Units in FY2023

Foundation in Place for Profitable and Sustainable Growth

  • Fourth Quarter International Cannabis Increased 205% from the Prior Year Q4; Tilray Medical Leads European Medical Cannabis Market with 20% Market Share in Germany

  • Delivered $85 Million in Cost Savings to Date, Exceeding Original Target on Accelerated Timeline; Company Now Expects to Deliver $100 Million by the End of FY2023

  • Significantly Strengthened Balance Sheet, Reduced Debt, and Ended FY2022 with $416 Million in Cash

  • Tilray Brands Sets Stage for Next Evolution of Cannabis Following HEXO Transaction, which Positions the Company for Additional Growth Opportunities in Canada, Europe, and the U.S

NEW YORK and LEAMINGTON, Ontario, July 28, 2022 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. (“Tilray” or the “Company”) (Nasdaq: TLRY; TSX: TLRY), a leading global cannabis-lifestyle and consumer packaged goods company inspiring and empowering the worldwide community to live their very best life, today reported financial results for the fourth quarter and full fiscal year ended May 31, 2022. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated, and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”).

Irwin D. Simon, Tilray Brands’ Chairman and Chief Executive Officer, stated, “Over the past year, we have accelerated the optimization of our operations and sharpened execution against our most profitable core business opportunities in medical, adult-use, wellness, and beverage-alcohol across Canada, Europe, and the U.S. At the same time, we accelerated our growth potential through tactical execution and strategic initiatives that enable accelerated revenue growth through improved cultivation, brand building, and distribution. These actions should also contribute to bottom-line performance improvement through production efficiencies and cost reductions. The outcome of this work is that we have driven top line growth across our markets, significantly improved our operating performance, and strengthened our balance sheet.”

He continued, “We are confident that our proactive steps to plan for the evolution of the cannabis business in each of our markets has positioned Tilray Brands to be at the forefront of the industry on a global basis while delivering profitability and driving shareholder value.”

Financial Highlights - 2022 Fiscal Fourth Quarter1

  • Net revenue grew 8% to $153.3 million during the fourth quarter from $142.2 million in the prior year quarter. On a constant currency basis, net revenue increased 14.5%.
  • Net loss of $457.8 million during the fourth quarter compared to net income of $33.6 million in the prior year quarter. Net loss in the fiscal 2022 fourth quarter includes a non-cash impairment of $395.0 million primarily impacting inventory, goodwill and other intangible assets. The impact was related to changes in market opportunities causing a shift in our strategic priorities, and market conditions inclusive of higher rates of borrowing and lower foreign exchange rates.
  • Adjusted EBITDA of $11.5 million, marking the Company’s 13th consecutive quarter of positive Adjusted EBITDA.

Financial Highlights- 2022 Fiscal Year

  • Net revenue increased 22% to $628.4 million during fiscal 2022 from $513.1 million in the prior fiscal year. The increase was driven by 17.9% growth in cannabis net revenue to $237.5 million, a 150.0% increase in beverage alcohol net revenue of $71.5 million, and a 928.8% increase in wellness net revenue to $59.6 million. On a constant currency basis, net revenue increased by 29%.
  • Net loss of $434 million in fiscal 2022 includes the non-cash impairment of $395.0 million in the fourth quarter (discussed above).
  • Adjusted EBITDA increased 17.8% to $48.0 million in fiscal year 2022 from $40.8 million in the prior fiscal year.
  • Ended the year with a strong balance sheet and liquidity, including cash and cash equivalents of $415.9 million.

Cost-Saving Synergies and Strengthened Balance Sheet

Since the closing of the Tilray-Aphria transaction, the Company has delivered $85 million in cost synergies, exceeding its original target of delivering $80 million of cost savings by the end of fiscal year 2023. These synergies are due to consolidation in key areas of cultivation and production, cannabis and product purchasing, sales and marketing, and corporate expenses. The Company has subsequently identified an additional $20 million of savings, and now expects to deliver a total of $100 million in cost synergies from the transaction by the end of fiscal year 2023.

Further, with the benefit of an additional $80 million of shared cost savings, synergies and financial benefits over the next two years associated with the HEXO transaction, management expects that Tilray Brands will be free cash flow positive in its business units in fiscal year 2023.

Upside Potential of HEXO Transaction

Tilray Brands’ acquisition of HEXO Corp.’s senior secured convertible note, on highly favorable terms, closed on July 12, 2022, bringing immediate accretion to the Company and facilitating collaboration and the sharing of best practices that will help Tilray Brands to drive ongoing international expansion and take advantage of the opportunities expected to come with federal legalization in the U.S. In addition, due to significant operating efficiencies, the companies expect to deliver a total of $80 million of shared cost savings over the next two years.

Highlights of Strategic Growth Actions in Fiscal 2022

United States:

  • August ’21 - Tilray Acquires Majority Position in Amended MedMen Convertible Notes 
  • November ’21 - Tilray’s SweetWater Brand Enters Spirits Category Through New Ready-To-Drink Cocktail Now Available in the United States 
  • December ’21 - Tilray Strengthens Strategic Position in the U.S. with Acquisition of Breckenridge Distillery 
  • December ’21 - SweetWater Brewing announced the acquisition of Alpine Beer Company and Green Flash Brewing Company
  • January ’22 – Manitoba Harvest Launches 2022 Wellness Boost Campaign
  • February ’22 - SweetWater Brewing Company Expands Distribution Across California 
  • February ’22 - SweetWater Brewing Company Continues Rapid Expansion with Distribution Rollout Across Washington & Oregon 
  • April ’22 - SweetWater Brewing Company celebrated 25th anniversary and hosted 420 music Festival in Atlanta, Georgia with 75 thousand festival goers
  • April ’22 - Manitoba Harvest Enters Exclusive Partnership with Whole Foods Market
  • April ’22 - Breckenridge Distillery Takes Home Two Double Gold and One Gold Medal at the 2022 San Francisco World Spirits Competition
  • April ’22 – Breckenridge Distillery Launches New Collectors Art Series with Denver Artist Alexandrea Pangburn


  • June ’21 - Tilray Launches New Medical Cannabis Brand, Symbios 
  • June ’21 - Tilray Launches Canadian Craft Cannabis Brand, Broken Coast, in the U.S. with Broken Coast Lager 
  • August ’21 – Tilray Medical Launches New Medical Cannabis Edibles in Canada 
  • October ’21 - Tilray Strengthens Leadership Position in Canada with new addition of Blair MacNeil, President of Canada 
  • October ’21 - Tilray Expands Distribution across Canada with Great North Distributors 
  • December ’21 - Launch of Tilray’s Fast-Acting Oral Strips Highlights Commitment to Medical Cannabis Innovation and Patient Care 
  • March ’22 - Good Supply Brand Expands Its Award-Winning Cannabis Portfolio with Hash Bats™; A New ‘Hard-Hitting’ Infused Pre-Roll 
  • March ’22 - Solei Brand Launches New Wellness Product for Nighttime Use 
  • April ’22 - Solei Brand Launches the First Cannabis Edible Available in Quebec 
  • April ’22 - Tilray Brands hosts sold-out ‘Holy Smokes’ 420 Budtender event in Toronto
  • May ’22 - Good Supply Brand Expands High-Potency Cannabis Portfolio with Launch of Liquid Wax Vapes and New Exclusive Strains 

Europe and International:

  • July ’21 – Tilray’s Aphria RX GmbH Completes First Harvest and Delivery of Medical Cannabis Grown in Germany 
  • October ’21 – Tilray Launches Medical Cannabis in Luxembourg
  • November ’21 - Tilray Expands Medical Cannabis Footprint in Malta 
  • January ’22 - Tilray Expands Medical Cannabis Product Offering in Australia 
  • February ‘22 - Tilray Brands Consolidates its Global Medical Offering into Tilray Medical, a Comprehensive Portfolio of Brands and Products 
  • February ’22 - Tilray Launches Medical Cannabis Products in Malta 
  • March ’22 - Tilray Medical Expands Offering in Malta and Launches First Medical Cannabis Oil Products in Market 
  • May ’22 - Announced the launch of CBD lifestyle brand, POLLEN, on Amazon UK 


Tilray Brands will host a webcast to discuss these results today at 8:30 a.m. ET. Investors may join the live webcast available on the Investors section of the Company’s website at www.tilray.com. The webcast will also be archived after the call concludes.

About Tilray Brands

Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY), is a leading global cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people's lives for the better – one person at a time. Tilray Brands delivers on this mission by inspiring and empowering the worldwide community to live their very best life, enhanced by moments of connection and wellbeing. Patients and consumers trust Tilray Brands to be the most responsible, trusted and market leading cannabis consumer products company in the world with a portfolio of innovative, high-quality and beloved brands that address the needs of the consumers, customers and patients we serve. A pioneer in cannabis research, cultivation, and distribution, Tilray Brands’ unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.

For more information on Tilray Brands, visit www.Tilray.com and follow @Tilray

Cautionary Statement Concerning Forward-Looking Statements

Certain statements in this press release constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication.

Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the Company’s ability to become the world's leading cannabis-focused consumer branded company and achieve $4B in revenue by the end of fiscal 2024; the Company’s ability to generate $70-$80 million of Adjusted EBITDA and expectation to be free-cash flow positive in its operating business units in FY 2023; the Company’s ability to achieve operational scale, market share, distribution, profitability and revenue growth in particular markets, including in Canada, the U.S. and the EU; and the Company’s ability to successfully achieve the expected production efficiencies, synergies and cost savings relating to the HEXO transactions and agreed commercial arrangements; and the Company’s anticipated investments, including in organic and strategic growth, partnership efforts, product offerings and other initiatives.

Many factors could cause actual results, performance or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of the Company and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of the Company made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.

Use of Non-U.S. GAAP Financial Measures

This press release and the accompanying tables include non-GAAP financial measures, including adjusted gross margin, Adjusted EBITDA and free cash flow. Management believes that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the Company's operations and are useful for period-over-period comparisons of operations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read only in connection with the Company's Consolidated Statements of Operations and Cash Flows presented in accordance with GAAP.

Certain forward-looking non-GAAP financial measures included in this press release are not reconciled to the comparable forward-looking GAAP financial measures. The Company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Such items may include litigation and related expenses, transaction costs, impairments, foreign exchange movements and other items. The unavailable information could have a significant impact on the Company's GAAP financial results.

The Company believes presenting net sales at constant currency provides useful information to investors because it provides transparency to underlying performance in the Company's consolidated net sales by excluding the effect that foreign currency exchange rate fluctuations have on period-to-period comparability given the volatility in foreign currency exchange markets. To present this information for historical periods, current period net sales for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average monthly exchange rates in effect during the corresponding period of the prior fiscal year, rather than at the actual average monthly exchange rate in effect during the current period of the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in average foreign currency exchange rate between the current fiscal period and the corresponding period of the prior fiscal year.

Adjusted EBITDA is calculated as net income (loss) before inventory valuation adjustments; interest expenses, net; other expenses (income), net; deferred income tax (recoveries) expenses, current income tax expenses (benefit); foreign exchange gain (loss), net; depreciation and amortization expenses; stock-based compensation expenses; loss from equity method investments; loss on disposal of property and equipment; amortization of inventory step-up; severance costs; impairment of assets; and change in fair value of warrant liability. A reconciliation of Adjusted EBITDA to net loss, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Gross margin, excluding inventory valuation adjustments, is calculated as revenue less cost of sales adjusted to add back inventory valuation adjustments and amortization of inventory step-up, divided by revenue. A reconciliation of Gross margin, excluding inventory valuation adjustments, to gross margin, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release. Free cash flow is comprised of two GAAP measures deducted from each other which are net cash flow provided by (used in) operating activities less investments in capital and intangible assets. A reconciliation of net cash flow provided by (used in) operating activities to free cash flow, the most directly comparable GAAP measure, has been provided in the financial statement tables included below in this press release.

For further information:

Media: Berrin Noorata, news@tilray.com

Investors: Raphael Gross, +1-203-682-8253, Raphael.Gross@icrinc.com

1 This press release includes certain non-GAAP financial measures, which are intended to supplement, not substitute for, comparable GAAP financial measures. Reconciliations of non-GAAP financial measures to GAAP financial measures and other non-GAAP financial calculations are provided herein in the tables.

Consolidated Statements of Financial Position

(In thousands of United States dollars) May 31, 2022 May 31, 2021 
Current assets     
Cash and cash equivalents $415,909  $488,466  
Accounts receivable, net  95,279   87,309  
Inventory  245,529   256,429  
Prepaids and other current assets  46,786   48,920  
Current portion of convertible notes receivable     2,485  
Total current assets  803,503   883,609  
Capital assets  587,499   650,698  
Right-of-use assets  12,996   18,267  
Intangible assets  1,277,875   1,605,918  
Goodwill  2,641,305   2,832,794  
Interest in equity investees  4,952   8,106  
Long-term investments  10,050   17,685  
Convertible notes receivable  111,200     
Other assets  314   8,285  
Total assets $5,449,694  $6,025,362  
Current liabilities     
Bank indebtedness $18,123  $8,717  
Accounts payable and accrued liabilities  157,431   212,813  
Contingent consideration  16,007   60,657  
Warrant liability  14,255   78,168  
Current portion of lease liabilities  6,703   4,264  
Current portion of long-term debt  67,823   36,622  
Total current liabilities  280,342   401,241  
Lease liabilities  11,329   53,946  
Long-term debt  117,879   167,486  
Convertible debentures  401,949   667,624  
Deferred tax liabilities, net  196,638   265,845  
Other liabilities  191   3,907  
Total liabilities  1,008,328   1,560,049  
Commitments and contingencies (refer to Note 17)     
Stockholders' equity     
Common stock ($0.0001 par value; 990,000,000 shares authorized; 532,674,887 and 446,440,641 shares issued and outstanding, respectively)  53   46  
Additional paid-in capital  5,382,367   4,792,406  
Accumulated other comprehensive (deficit) income (loss)  (20,764)  152,668  
Accumulated deficit  (962,851)  (486,050) 
Total Tilray Brands, Inc. stockholders' equity  4,398,805   4,459,070  
Non-controlling interests  42,561   6,243  
Total stockholders' equity  4,441,366   4,465,313  
Total liabilities and stockholders' equity $5,449,694  $6,025,362  

Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss)

(In thousands of United States dollars, excpet for per share data) For the three months ended May 31,For the year ended May 31, 
  2022   2021   2022   2021   
Net revenue $153,325  $142,236  $628,372  $513,085   
Cost of goods sold  160,058   119,738   511,555   389,903   
Gross profit  (6,733)  22,498   116,817   123,182   
Operating expenses:          
General and administrative  41,400   32,839   162,801   111,575   
Selling  9,643   8,525   34,926   26,576   
Amortization  30,846   16,100   115,191   35,221   
Marketing and promotion  10,771   5,103   30,934   17,539   
Research and development  54   358   1,518   830   
Change in fair value of contingent consideration  (15,585)     (44,650)     
Impairment  378,241      378,241      
Litigation costs  4,099   2,099   16,518   3,251   
Transaction costs  1,221   31,161   31,739   60,361   
Total operating expenses  460,690   96,185   727,218   255,353   
Operating loss  (467,423)  (73,687)  (610,401)  (132,171)  
Interest expense, net  (5,522)  (9,466)  (27,944)  (27,977)  
Non-operating income (expense), net  11,342   121,510   197,671   (184,838)  
Loss before income taxes  (461,603)  38,357   (440,674)  (344,986)  
Income taxes (recovery)  (3,803)  4,735   (6,542)  (8,972)  
Net loss $(457,800) $33,622  $(434,132) $(336,014)  
Net loss per share - basic and diluted $(0.90) $0.38  $(0.90) $(1.25)  

Net Revenue by Operating Segment

(In thousands of United States dollars) Year Ended May 31, 2022 % of Total Revenue Year Ended May 31, 2022 % of Total Revenue 
Cannabis business $237,522 38% $201,392 39% 
Distribution business  259,747 42%  277,300 54% 
Beverage alcohol business  71,492 11%  28,599 6% 
Wellness business  59,611 9%  5,794 1% 
Net revenue $628,372 100% $513,085 100% 
(In thousands of United States dollars) Three months ended May 31, 2022 % of Total Revenue Three months ended May 31, 2021 % of Total Revenue 
Cannabis business $53,253 35% $53,703 38% 
Distribution business  61,160 39%  66,792 47% 
Beverage alcohol business  22,727 15%  15,947 11% 
Wellness business  16,185 11%  5,794 4% 
Net revenue $153,325 100% $142,236 100% 

Net Cannabis Revenue by Market Channel

(In thousands of United States dollars) For the year ended May 31, For the year ended May 31,    
  2022  2022   2021  2021     
Revenue from Canadian medical cannabis products $30,599  13% $25,539  13%    
Revenue from Canadian adult-use cannabis products  209,501  88%  222,930  110%    
Revenue from wholesale cannabis products  6,904  3%  6,615  3%    
Revenue from international cannabis products  53,887  23%  9,250  5%    
Less excise taxes  (63,369) -27%  (62,942) -31%    
Total $237,522  100% $201,392  100%    
  For the three months ended May 31, For the three months ended May 31,    
(In thousands of United States dollars)  2022  2022   2021  2021     
Revenue from Canadian medical cannabis products $7,246  14% $6,968  13%    
Revenue from Canadian adult-use cannabis products  46,869  88%  59,710  111%    
Revenue from wholesale cannabis products  141  0%  56  0%    
Revenue from international cannabis products  14,095  26%  4,623  9%    
Less excise taxes  (15,098) -28%  (17,654) -33%    
Total $53,253  100% $53,703  100%    

Gross Margin and Adjusted Gross Margin

 (In thousands of United States dollars) For the year ended May 31, 2022 
  Cannabis Beverage Distribution Wellness Total 
Revenue $300,891  $74,959  $259,747  $59,611  $695,208  
Excise taxes  (63,369)  (3,467)        (66,836) 
Net revenue  237,522   71,492   259,747   59,611   628,372  
Cost of goods sold  194,834   32,033   243,231   41,457   511,555  
Gross profit  42,688   39,459   16,516   18,154   116,817  
Gross margin  18.0%  55.2%  6.4%  30.5%  18.6% 
Inventory valuation adjustments  59,500      7,500      67,000  
Purchase price accounting step-up     2,214         2,214  
Adjusted gross profit  102,188   41,673   24,016   18,154   186,031  
Adjusted gross margin  43.0%  58.3%  9.2%  30.5%  29.6% 
 (In thousands of United States dollars) For the year ended May 31, 2021 
  Cannabis Beverage Distribution Wellness Total 
Revenue $264,334  $29,661
  $277,300  $5,794  $577,089
Excise taxes  (62,942)  (1,062)        (64,004) 
Net revenue  201,392   28,599
   277,300   5,794   513,085  
Cost of goods sold  130,511   12,687
   242,472   4,233   389,903  
Gross profit  70,881   15,912
   34,828   1,561   123,182  
Gross margin  35.2%  55.6%  12.6%  26.9%  24.0% 
Inventory valuation adjustments  19,919            19,919  
Purchase price accounting step-up     835         835  
Adjusted gross profit  90,800   16,747   34,828   1,561   143,936  
Adjusted gross margin  45.1%  58.6%  12.6%  26.9%  28.1% 
(In thousands of United States dollars) For the three months ended May 31, 2022 
  Cannabis Beverage Distribution Wellness Total 
Revenue $68,351  $23,459  $61,160  $16,185  $169,155  
Excise taxes  (15,098)  (732)        (15,830) 
Net revenue  53,253   22,727   61,160   16,185   153,325  
Cost of goods sold  72,342   11,359   65,138   11,219   160,058  
Gross profit  (19,089)  11,368   (3,978)  4,966   (6,733) 
Gross margin  -35.8%  50.0%  -6.5%  30.7%  -4.4% 
Inventory valuation adjustments  47,500      7,500      55,000  
Purchase price accounting step-up     2,214         2,214  
Adjusted gross profit  28,411   13,582   3,522   4,966   50,481  
Adjusted gross margin  53.4%  59.8%  5.8%  30.7%  32.9% 
 (In thousands of United States dollars) For the three months ended May 31, 2021 
  Cannabis Beverage Distribution Wellness Total 
Revenue $71,357  $16,549  $66,792  $5,794  $160,492  
Excise taxes  (17,654)  (602)        (18,256) 
Net revenue  53,703   15,947   66,792   5,794   142,236  
Cost of goods sold  49,731   5,350   60,424   4,233   119,738  
Gross profit  3,972   10,597   6,368   1,561   22,498  
Gross margin  7.4%  66.5%  9.5%  26.9%  15.8% 
Inventory valuation adjustments  19,919            19,919  
Purchase price accounting step-up     835         835  
Adjusted gross profit  23,891   11,432   6,368   1,561   43,252  
Adjusted gross margin  44.5%  71.7%  9.5%  26.9%  30.4% 

Adjusted Earnings before Interest, Taxes, and Amortization

(In thousands of United States dollars)  Three months ended May 31,  Year ended May 31,  
Adjusted EBITDA reconciliation:  2022   2021   2022   2021  
Net loss $(457,800) $33,622  $(434,132) $(336,014) 
Income taxes  (3,803)  4,735   (6,542)  (8,972) 
Interest expense, net  5,522   9,466   27,944   27,977  
Non-operating expense (income), net  (11,350)  (121,510)  (197,671)  184,838  
Amortization  40,768   24,540   154,592   67,832  
Stock-based compensation  8,969   5,937   35,994   17,351  
Change in fair value of contingent consideration  (15,577)     (44,650)    
Impairment  378,241      378,241     
Inventory valuation adjustments  55,000   19,919   67,000   19,919  
Purchase price accounting step up  2,214   835   2,214   835  
Facility start-up and closure costs  3,300   2,056   13,700   2,056  
Lease expense  700   335   3,100   1,337  
Litigation costs  4,099   2,099   16,518   3,251  
Transaction costs  1,221   31,161   31,739   60,361  
Adjusted EBITDA $11,504  $13,195  $48,047  $40,771  

Key Operating Metrics

  For the three months ended May 31,  For the years ended May 31,
(In thousands of United States dollars)  2022   2021   2022   2021 
Net cannabis revenue $53,253  $53,703  $237,522  $201,392 
Net beverage alcohol revenue  22,727   15,947   71,492   28,599 
Distribution revenue  61,160   66,792   259,747   277,300 
Wellness revenue  16,185   5,794   59,611   5,794 
Cannabis cost of sales  72,342   49,731   194,834   130,511 
Beverage alcohol cost of sales  11,359   5,350   32,033   12,687 
Distribution cost of sales  65,138   60,424   243,231   242,472 
Wellness cost of sales  11,219   4,233   41,457   4,233 
Gross profit (excluding inventory valuation adjustments and step-up)  50,481   43,252   186,031   143,936 
Cannabis gross margin (excluding inventory valuation adjustments and step-up)  53.4%  44.5%  43.0%  45.1%
Beverage gross margin (excluding inventory valuation adjustments and step-up)  59.8%  71.7%  58.3%  58.6%
Distribution gross margin (excluding inventory valuation adjustments and step-up)  5.8%  9.5%  9.2%  12.6%
Wellness gross margin (excluding inventory valuation adjustments and step-up)  30.7%  26.9%  30.5%  26.9%
Adjusted EBITDA  11,504   13,195   48,047   40,771 
Cash and cash equivalents  415,909   488,466   415,909   488,466 
Working capital  523,161   479,883   523,161   482,368