Why Tilray Brands Stock Inched Upward Today

Thanks to its announcement of a new cannabis product that Tilray Brands (NASDAQ: TLRY) plans to sell in Quebec via its Good Supply brand, the company's stock rose by just over 9% on Wednesday before settling to an increase around 6.3% as of 1:07 p.m. ET. The new entry is a hash-infused pre-rolled joint, and it targets the high-potency segment of the recreational cannabis market.

Tilray's gross margin has been under pressure recently due to slashing its prices in an attempt to remain competitive with smaller private players in the Canadian market. Launching a new high-value-added joint aimed at marijuana enthusiasts rather than casual consumers means it could capture demand that would likely be quite profitable to serve. And that would be especially true if its Good Supply brand can get it distributed throughout Canada if it's successful in Quebec.

The company will report its fiscal fourth-quarter and fiscal-year 2022 earnings toward the end of July or in early August, but a full three months of sales of the new joint won't show up in its revenue until a couple of quarters from then.

Source Fool.com