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Tilray, Inc. Reports Profitable Second Quarter Fiscal Year 2022 Financial Results – GlobeNewswire



  • Net Revenue Increased ~20% to $155 Million from the Prior Year Quarter
  • Net Income Improved $95 Million to $6 Million from the Prior Year Quarter
  • Adjusted EBITDA of $13.8 Million, 11th Consecutive Quarter of Positive Adjusted EBITDA
  • Achieved $70 Million in Cost Synergies To Date; On-Track to Exceed Original Plan of $80 Million Ahead of Schedule and to Generate Additional $20 Million of Synergies in Fiscal 2023
  • Leading Medical Cannabis Company in Europe with ~20% Market Share in Germany

NEW YORK, Jan. 10, 2022 (GLOBE NEWSWIRE) — Tilray, 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 second fiscal quarter ended November 30, 2021. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.

The Company also announced a new parent name, Tilray Brands, Inc., reflecting the Company’s evolution from a Canadian LP to a global consumer packaged goods company powerhouse with a market leading portfolio of cannabis and lifestyle CPG brands.

Irwin D. Simon, Tilray’s Chairman and Chief Executive Officer, stated, “Our second quarter performance reflects notable success building high-quality and highly sought-after cannabis and lifestyle CPG brands which, coupled with our scale, operational excellence and broad global distribution, enabled us to increase sales and maintain profitability despite sector-specific and macro-economic headwinds.”

Mr. Simon continued, “Looking at performance highlights across key markets, we maintained our #1 cannabis market share position in Canada – despite market saturation and related competitive challenges — on the strength of our brands and adept pricing and marketing adjustments. Importantly, we believe these adjustments will enable us to aggressively recapture share when the market right-sizes. In Germany – Europe’s largest and most profitable medical cannabis market – our nearly 20% share leads the market. We believe this, coupled with our infrastructure, will also allow us to capture the adult-use market as legalization accelerates under the new coalition government. Turning to the U.S., SweetWater Brewing and Manitoba Harvest continued to invest in product innovation and acquisitions to enhance awareness and distribution. These profitable businesses further provide an opportunity to launch THC-based products upon federal legalization in the U.S. Subsequent to the end of the fiscal quarter, we also expanded our spirits portfolio through the acquisition of Breckenridge Distillery, deepening our presence in the fast-growing spirits sector while also providing an immediate contribution to earnings.”

Mr. Simon concluded, “The totality of our performance, our prospects and our global platform make Tilray Brands’ opportunity as compelling as ever, driven by our success as a cannabis and lifestyle CPG powerhouse and our relentless focus on delivering shareholder value.”

Financial Highlights – Second Quarter Fiscal 2022

  • Net income increased to $6 million from a net loss of $89 million in the previous year quarter.
  • Net revenue increased ~20% to $155 million during the second quarter from $129 million in the prior year quarter. The increase was driven by 7% growth in cannabis revenue to $58.8 million, net beverage alcohol revenue of $13.7 million from SweetWater, and wellness segment revenue of $13.8 million from Manitoba Harvest.
  • Adjusted EBITDA of $13.8 million in the second quarter 2022, 8% growth compared to the preceding prior quarter, and the eleventh consecutive quarter of positive Adjusted EBITDA
  • Gross profit of $32.8 million, a 7% decrease from $35.3 million in the prior year quarter.
  • Adjusted gross margin in the cannabis segment remained strong at 43%.
  • Maintained #1 cannabis market share in Canada1 with leading portfolio of comprehensive medical cannabis and adult-use brands, including top position in cannabis flower and pre-rolls.
  • International medical cannabis market leader and #1 in Germany2 with ~20% market share.
  • Cost synergies from Aphria-Tilray combination of $70 million achieved on a run-rate basis to date, with actual cash-savings close to $36 million to date. Expect to reach $80 million synergy target, ahead of schedule, by May 31, 2022 and to generate an additional $20 million in synergies in fiscal 2023.

Strategic Growth Actions

  • On December 21, 2021 – SweetWater acquired award-winning craft-beer brands, Alpine Beer and Green Flash Brewing.
  • On December 8, 2021, Tilray acquired Breckenridge Distillery, strengthening its strategic position in the U.S.
  • On November 4, 2021, SweetWater entered the Spirits category with new ready-to-drink cocktail and cross-brand collaboration with Canadian cannabis brand, RIFF.
  • On October 26, 2021, Tilray announced European expansion with medical cannabis agreement in Luxembourg.
  • On October 20, 2021, Tilray announced an expanded distribution agreement with Great North Distributors for adult-use cannabis sales across Canada.

Growth and High Potential Across Key Markets

  • #1 Market Leading Position in Germany and Poised to Benefit from Recreational Legalization –Tilray is also the only company currently supplying the German government with medical cannabis grown in-country. The Company’s state-of-the-art EU GMP certified cultivation facility in Germany has additional capacity to immediately support entry into the recreational market upon legalization, which the new German coalition government is accelerating.
  • Ongoing Progress Across the EU – Tilray’s success across the EU, a powerful growth market worth potentially $1 billion for the Company, is backed by its two state-of-the-art cultivation facilities in Portugal and Germany that provide EU GMP certified pharmaceutical-grade medical cannabis across the region. Tilray is also the only Company with two EU GMP certified cannabis facilities in Europe. This unparalleled production capability coupled with Tilray’s sales arrangements through major distribution channels in Germany, the UK, and other key markets, and strong relationships with local governments and the trust of patients give Tilray the ability to drive accelerated growth.
  • #1 Leading Cannabis Market Share in Canada – Amid an intensely competitive and over-saturated market, Tilray remains the market leader in the CAD$4.26 billion Canadian cannabis market, driven by a portfolio of carefully curated brands across all consumer segments; medical, wellness, innovative cannabis 2.0 products across concentrates, edibles, and drinks; processing capacity; and distribution. In order to address the saturated marketplace, Tilray has implemented strategic price adjustments, expanded distribution through its coast-to-coast agreement with Rose Life Sciences and Great North Distributors, and doubled-down on and accelerated product innovation.
  • A Leading U.S. CPG Platform that Generates Considerable Cash Flow Now and Will Be Immediately Leveraged for Cannabis Products Upon Federal Legalization – In the U.S., Tilray’s operating businesses include SweetWater, the 11th largest craft brewer in the nation3 and leading lifestyle brand, and Manitoba Harvest, a pioneer in hemp, CBD and wellness products. Together, they generate approximately $100 million in revenue and are EBITDA and cash flow positive and will expand in the near term into CBD adjacencies and THC-based products upon legalization. Further, the Company continues to build its U.S. platform, including through its prior acquisition of a majority of the outstanding senior secured convertible notes of MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) – which marked a critical step towards delivering on its objective of leading the U.S. cannabis market upon federal legalization.

Conference Call
Tilray executives will host a conference call and live audio webcast to discuss these results at 8:30 am Eastern Time, details of which are provided below.

Call-in Number: (877) 407-0792 from Canada and the U.S. or (201) 689-8263 from international locations. Please dial in at least 10 minutes prior to the start time.

A telephone replay will be available approximately two hours after the call concludes through January 26, 2022. To access the recording dial (844)-512-2921 and use the passcode 13725661.     

There will be a simultaneous, live webcast available on the Investors section of Tilray’s website at The webcast will also be archived.

ICR Conference Participation Today

Tilray executives will also host a virtual fireside chat at the ICR Conference at 1:30 pm Eastern Time today. There will be a simultaneous, live webcast available on the Investors section of Tilray’s website at The webcast will also be archived.

About Tilray

Tilray, 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 – by inspiring and empowering the worldwide community to live their very best life by providing them with products that meet the needs of their mind, body, and soul and invoke a sense of wellbeing. Tilray’s mission is to be the trusted partner for its patients and consumers by providing them with a cultivated experience and health and wellbeing through high-quality, differentiated brands and innovative products. A pioneer in cannabis research, cultivation, and distribution, Tilray’s unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and alcoholic beverages.

For more information on how we open a world of wellbeing, visit

Forward-Looking Statements

Certain statements in this communication that are not historical facts 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; expectations regarding profitable revenue growth and expected cost savings; and the Company’s ability to commercialize new and innovative beverage products. 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 Tilray and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of Tilray 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 adjusted 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.

Adjusted EBITDA is calculated as net income (loss) before finance expense, net; non-operating expense (income), net; amortization; stock-based compensation; facility start-up and closure costs; inventory valuation adjustment; lease expense; and transaction costs. 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. Adjusted free cash flow removes the cash impact of acquisitions from free cash flow. A reconciliation of net cash flow provided by (used in) operating activities to free cash flow and to adjusted cash flows, 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,
Investors: Raphael Gross, +1-203-682-8253,

1 Based on Hifyre retail data.
2 Insight Health NPI: Panel data of 5,500 pharmacies (29% coverage)
3 The Brewers Association Top 50 Brewing Companies by Sales Volume Report for 2020.


Consolidated Statements of Financial Position

(In thousands of United States dollars)   November 30,
    May 31,
Current assets                
Cash and cash equivalents   $ 331,783     $ 488,466  
Accounts receivable, net     84,575       87,309  
Inventory     233,020       256,429  
Prepaids and other current assets     57,340       48,920  
Convertible notes receivable     1,560       2,485  
Total current assets     708,278       883,609  
Capital assets     604,249       650,698  
Right-of-use assets     13,933       18,267  
Intangible assets     1,450,015       1,605,918  
Goodwill     2,814,163       2,832,794  
Interest in equity investees     4,440       8,106  
Long-term investments     168,244       17,685  
Other assets     164       8,285  
Total assets   $ 5,763,486     $ 6,025,362  
Current liabilities                
Bank indebtedness   $ 8,736     $ 8,717  
Accounts payable and accrued liabilities     168,300       212,813  
Contingent consideration     62,339       60,657  
Warrant liability     40,455       78,168  
Current portion of lease liabilities     3,588       4,264  
Current portion of long-term debt     31,510       36,622  
Total current liabilities     314,928       401,241  
Long – term liabilities                
Lease liabilities     49,265       53,946  
Long-term debt     151,819       167,486  
Convertible debentures     554,854       667,624  
Deferred tax liability     219,311       265,845  
Other liabilities     320       3,907  
Total liabilities     1,290,497       1,560,049  
Shareholders’ equity                
Common stock ($0.0001 par value; 990,000,000 shares authorized; 463,802,393 and 265,423,304 shares issued and outstanding, respectively)     46       46  
Additional paid-in capital     4,954,547       4,792,406  
Accumulated other comprehensive income     9,595       152,668  
Accumulated Deficit     (527,900 )     (486,050 )
Total Tilray shareholders’ equity     4,436,288       4,459,070  
Non-controlling interests     36,701       6,243  
Total shareholders’ equity     4,472,989       4,465,313  
Total liabilities and shareholders’ equity   $ 5,763,486     $ 6,025,362  

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

    Three months ended
November 30,
    Six months ended
November 30,
    Three months ended
November 30,
    Six months ended
November 30,
(In thousands of United States dollars)   2021     2020     2021     2020     Change     %Change     Change     %Change  
Net revenue   $ 155,153     $ 129,459     $ 323,176     $ 246,949     $ 25,694     20 %     $ 76,227     31 %  
Cost of goods sold     122,387       94,176       239,455       176,721       28,211     30 %       62,734     35 %  
Gross profit     32,766       35,283       83,721       70,228       (2,517 )   (7 %)       13,493     19 %  
Operating expenses:                                   0             0          
General and administrative     33,469       28,273       82,956       54,245       5,196     18 %       28,711     53 %  
Selling     9,210       6,079       16,642       11,896       3,131     52 %       4,746     40 %  
Amortization     29,016       4,208       59,755       8,335       24,808     590 %       51,420     617 %  
Marketing and promotion     7,120       4,252       12,585       9,177       2,868     67 %       3,408     37 %  
Research and development     515       225       1,300       345       290     129 %       955     277 %  
Transaction costs     8,120       18,206       33,699       20,664       (10,086 )   (55 %)       13,035     100 %  
Total operating expenses     87,450       61,243       206,937       104,662       26,207     43 %       102,275     98 %  
Operating loss     (54,684 )     (25,960 )     (123,216 )     (34,434 )     (28,724 )   111 %       (88,782 )   258 %  
Interest expense, net     (9,940 )     (4,832 )     (20,110 )     (10,568 )     (5,108 )   106 %       (9,542 )   90 %  
Non-operating income (expense), net     64,750       (72,649 )     113,610       (86,008 )     137,399     (189 %)       199,618     (232 %)  
Income (loss) before income taxes     126       (103,441 )     (29,716 )     (131,010 )     103,567     (100 %)       101,294     (77 %)  
Income taxes (recovery)     (5,671 )     (14,192 )     (909 )     (20,017 )     8,521     (60 %)       19,108     (95 %)  
Net income (loss)   $ 5,797     $ (89,249 )   $ (28,807 )   $ (110,993 )   $ 95,046     (106 %)     $ 82,186     (74 %)  
Total net income (loss) attributable to Shareholders of Tilray Inc.   $ (201 )   $ (99,900 )   $ (41,850 )   $ (134,243 )   $ 99,699     (100 %)     $ 92,393     (69 %)  
Weighted average number of common shares – basic     460,254,275       243,477,655       454,797,598       242,207,388                                  
Weighted average number of common shares – diluted     460,254,275       243,477,655       454,797,598       242,207,388                                  
Net income (loss) per share – basic   $ (0.00 )   $ (0.41 )   $ (0.09 )   $ (0.55 )                                
Net income (loss) per share – diluted   $ (0.00 )   $ (0.41 )   $ (0.09 )   $ (0.55 )                                

Net Revenue by Operating Segment

(In thousands of United States dollars)   Three months
November 30,
    % of
    Three months
November 30,
    % of
    Six months
November 30,
    % of
    Six months
November 30,
    % of
Cannabis revenue   $ 58,775     38 %     $ 54,766     42 %     $ 129,224     40 %     $ 105,968     43 %  
Distribution revenue     68,869     44 %       73,983     57 %       136,055     42 %       140,271     57 %  
Beverage alcohol revenue     13,707     9 %       710     1 %       29,168     9 %       710     0 %  
Wellness revenue     13,802     9 %           0 %       28,729     9 %           0 %  
Net revenue   $ 155,153     100 %     $ 129,459     100 %     $ 323,176     100 %     $ 246,949     100 %  

Net Cannabis Revenue by Market Channel

    Three months ended November 30,     Six months ended November 30,  
(In thousands of United States dollars)   2021       2020       2021       2020    
Revenue from Canadian medical cannabis products   $ 7,929     11 %     $ 6,260     9 %     $ 16,303     10 %     $ 12,640     9 %  
Revenue from Canadian adult-use cannabis products     49,535     67 %       58,175     83 %       119,128     73 %       115,123     84 %  
Revenue from wholesale cannabis products     2,259     3 %       1,440     2 %       3,959     2 %       5,232     4 %  
Revenue from international cannabis products     13,706     19 %       4,280     6 %       23,972     15 %       4,280     3 %  
Total cannabis revenue     73,429               70,155               163,362               137,275          
Excise taxes     (14,654 )   (20 %)       (15,389 )   (22 %)       (34,138 )   (21 %)       (31,307 )   (23 %)  
Total cannabis net revenue   $ 58,775             $ 54,766             $ 129,224             $ 105,968          

Other Financial Information: Gross Margin and Adjusted Gross Margin

(In thousands of United States dollars)   Three months ended November 30, 2021  
    Cannabis     Beverage     Distribution     Wellness     Total  
Gross revenue   $ 73,429     $ 14,544     $ 68,869     $ 13,802     $ 170,644  
Excise taxes     (14,654 )     (837 )                 (15,491 )
Net revenue     58,775       13,707       68,869       13,802       155,153  
Cost of goods sold     45,259       5,921       61,237       9,970       122,387  
Gross profit   $ 13,516     $ 7,786     $ 7,632     $ 3,832     $ 32,766  
Gross margin     23 %     57 %     11 %     28 %     21 %
Adjusted gross profit   $ 25,516     $ 7,786     $ 7,632     $ 3,832     $ 44,766  
Adjusted gross margin     43 %     57 %     11 %     28 %     29 %
    Three months ended November 30, 2020  
    Cannabis     Beverage     Distribution     Wellness     Total  
Gross revenue   $ 70,155     $ 754     $ 73,983     $     $ 144,892  
Excise taxes     (15,389 )     (44 )                 (15,433 )
Net revenue     54,766       710       73,983             129,459  
Cost of goods sold     29,632       281       64,263             94,176  
Gross profit   $ 25,134     $ 429     $ 9,720     $     $ 35,283  
Gross margin     46 %     60 %     13 %             27 %
Adjusted gross profit   $ 25,134     $ 429     $ 9,720     $     $ 35,283  
Adjusted gross margin     46 %     60 %     13 %             27 %
    Six months ended November 30, 2021  
    Cannabis     Beverage     Distribution     Wellness     Total  
Gross revenue   $ 163,362     $ 31,027     $ 136,055     $ 28,729     $ 359,173  
Excise taxes     (34,138 )     (1,859 )                 (35,997 )
Net revenue     129,224       29,168       136,055       28,729       323,176  
Cost of goods sold     85,450       12,583       120,527       20,895       239,455  
Gross profit   $ 43,774     $ 16,585     $ 15,528     $ 7,834     $ 83,721  
Gross margin     34 %     57 %     11 %     27 %     26 %
Adjusted gross profit   $ 55,774     $ 16,585     $ 15,528     $ 7,834     $ 95,721  
Adjusted gross margin     43 %     57 %     11 %     27 %     30 %
    Six months ended November 30, 2020  
    Cannabis     Beverage     Distribution     Wellness     Total  
Gross revenue   $ 137,275     $ 754     $ 140,271     $     $ 278,300  
Excise taxes     (31,307 )     (44 )                 (31,351 )
Net revenue     105,968       710       140,271             246,949  
Cost of goods sold     55,407       281       121,033             176,721  
Gross profit   $ 50,561     $ 429     $ 19,238     $     $ 70,228  
Gross margin     48 %     60 %     14 %             28 %
Adjusted gross profit   $ 50,561     $ 429     $ 19,238     $     $ 70,228  
Adjusted gross margin     48 %     60 %     14 %             28 %

Other Financial Information: Adjusted Earnings before Interest, Taxes, and Amortization

(In thousands of United States dollars)   For the three months ended
November 30,
    For the six months ended
November 30,
Adjusted EBITDA reconciliation:   2021     2020     2021     2020  
Net income (loss)     5,797       (89,249 )     (28,807 )     (110,993 )
Income taxes     (5,671 )     (14,192 )     (909 )     (20,017 )
Interest expense, net     9,940       4,832       20,110       10,568  
Non-operating expense (income), net     (64,750 )     72,649       (113,610 )     86,008  
Amortization     37,471       12,031       76,804       23,010  
Stock-based compensation     8,253       5,489       17,670       8,339  
Facility start-up and closure costs     1,700             7,900        
Lease expense     900       373       1,600       630  
Inventory write down     12,000             12,000        
Transaction costs     8,120       18,206       33,699       20,664  
Adjusted EBITDA   $ 13,760     $ 10,139     $ 26,457     $ 18,209  

Other Financial Information: Free Cash Flow and Adjusted Free Cash Flow

    Three months ended
November 30,
    Six months ended
November 30,
(In thousands of United States dollars)   2021     2020     2021     2020  
Net cash provided by (used in) operating activities   $ (17,121 )   $ 2,438     $ (110,348 )   $ (53,662 )
Less: investments in capital and intangible assets, net     (6,972 )     (9,301 )     (15,592 )     (23,256 )
Free cash flow   $ (24,093 )   $ (6,863 )   $ (125,940 )   $ (76,918 )
Cash expended related to acquisitions     8,120       18,206       56,510       20,664  
Adjusted free cash flow   $ (15,973 )   $ 11,343     $ (69,430 )   $ (56,254 )

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Apple poised as Peloton's saviour among news the company is pausing equipment production – MobileSyrup



A recent report from CNBC regarding Peloton’s manufacturing rate helped plummet the company’s stock by 24 percent in a single day.

The media outlet reports the exercise bike manufacturer has temporarily halted production of its fitness products because of a drop in consumer demand.

Internal documents revealed bike productions will pause in February and March. Production of Bike+ was halted back in December and won’t resume until June. The Tread treadmill won’t start manufacturing again for six weeks until February. Further, production of Tread+ was previously halted and likely won’t resume this year.

This fueled ongoing rumours surrounding the fitness company’s production problems, with Insider reporting Peloton will lay off 41 percent of its staff in its sales and marketing departments.

Once noted as the darling of connected exercise equipment, the company is now struggling. CNBC says that Peloton overestimated how many people would buy its products after a jump in sales tied to at-home workouts during the pandemic.

Now experts are saying the only way to save the Peloton is if tech giant Apple purchases it. Financial advice publication, The Motley Fool, reports Apple has the cash to spare and “wants to be a force in health and wellness.” However, the article also notes a possible acquisition would “benefit Peloton far more than it would Apple,” given the fitness company’s smaller “market opportunity.”

Peloton CEO John Foley has denied that production is slowing or halted and says media reports are “incomplete and out of context.”

“Rumors that we are halting all production of bikes and Treads are false,” Foley wrote in a letter of response.

However, he did acknowledge layoffs may soon be on the horizon.

“We now need to evaluate our [organizational] structure and size of our team, with the utmost care and compassion. And we are still in the process of considering all options as part of our efforts to make our business more flexible,” he wrote.

Image credit: Shutterstock

Sources: CNBC, Insider, The Motley Fool

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Latest research says combination of throat and nose swabs provides better COVID-19 rapid test results: Nova Scotia Health – CTV News Atlantic



In a Canadian first, Nova Scotia researchers say COVID-19 rapid tests that include both throat and nose swabs provide greater accuracy in detecting the virus.

Up until now, the instructions provided by the manufacture has been for nasal swab only.

Now, based on research led by Nova Scotia Health’s microbiology team, public health is recommending Nova Scotians using rapid tests swab both their throat and nose when collecting their sample.

In a release Friday, Nova Scotia Health said its working to update the current testing instructions that people receive when they pick up a rapid test.

The research was prompted by public discussion theorizing that a combined sample may produce more accurate results.

Speaking to CTV Thursday, Dr. Todd Hatchette, the chief of the province’s Division of Microbiology, Department of Pathology and Laboratory Medicine, said researchers found using a single swab on a person’s throat first, and then in both nostrils is more effective at detecting Omicron than doing either site alone.

“When we tested just over 1,500 people, we found that either the nose or the throat both detected about 60 per cent of people, but if you did a combined nose / throat, it detected over 82 per cent of people,” said Hatchette.

The research started about a week ago. Officials at the microbiology lab worked with volunteers at the Halifax Convention Centre testing site to collect the data.

In Friday’s release, Nova Scotia Health says collaboration with volunteer-based community rapid testing sites was key to the project’s success and allowed the project to rapidly answer a question that many jurisdictions across the country have been asking.

The investigation compared results of a common rapid take-home test using three sample sites: nasal swab; throat swab and; combined nasal/throat, the release said. All results were confirmed with PCR testing. Compared to PCR test results, samples from nasal or throat swabs each detected 64.5 per cent of cases; however, combining the nose and throat swabs increased sensitivity to 88.7 per cent.

This research project has been submitted for publication.

Dr. Theresa Tam, Canada’s chief public health officer, speaking Friday from Ottawa, welcomed the Nova Scotia swab study.

“I’ve asked our laboratory network, our laboratory experts, to take that into account and see whether we can provide some sort of guidance,” Tam said. “But, of course, I think we’ve been discovering that the Omicron variant may be behaving a bit differently to the previous variants, so this approach, this swabbing, might be useful.”

One thing to note, public health is advising that if only one location of the sample is being used, it should be the nasal swab, as the throat swab alone is not as effective as the nasal swab.

Nova Scotia is the first to report research results supporting a combined throat/nose collection method for self-administered rapid antigen tests.

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Gold price next week: a breakout or a sideways trap? All eyes on hawkish Fed and stocks volatility – analysts – Kitco NEWS



(Kitco News) The gold market surprised with a breakout above $1,830 an ounce this week. And analysts say next week will be pivotal in whether gold breaks out or gets stuck in the sideways price action again.

In an unexpected move, the precious metal surged to two-month highs this week, with investors flocking to safe havens as volatility rocked the equity markets ahead of the Federal Reserve meeting next week.

With stocks and the crypto space selling off, money has to go somewhere, RJO Futures senior market strategist Frank Cholly told Kitco News.

“Gold rallied this week due to all the weakness in the equity market. Bitcoin is down pretty good too,” Cholly said. “We have a bottom in gold. The question is, are we going to go lower and stay sideways or climb towards $1,900. The precious metal needs another close above $1,830. It’s critical to hold that level before a move above $1,850.”

The move in gold did surprise some analysts because of how swift it was, said Gainesville Coins precious metals expert Everett Millman.

“The gold market has been going sideways for several months. To see a breakout in either direction was a bit surprising. Coming into this week, sentiment in the gold market was very negative. Many big banks were projecting the gold price to go down. This ended up playing in gold’s favor as negative sentiment set us up for a reversion in another direction,” Millman said.

Also, rising oil prices and strong retail demand have contributed to higher price levels in gold. “Higher oil does make it more expensive to get gold out of the ground. We could see constraints in the gold supply being mined. Plus, the real demand for gold is still strong. The U.S. Mint saw 12-year highs in gold sales, while the Perth Mint saw 10-year highs. Average retail investors are still buying gold at the fastest pace in ten years,” Millman added.

All eyes are on how markets will react to the Federal Reserve monetary policy meeting, scheduled for Wednesday. Cholly estimates to see a steeper sell-off in U.S. equities as the central bank maintains the same level of hawkishness.

“We could go through a more meaningful correction in equities. We’ll have more evidence of the Fed’s direction. And the stock market likes to throw tantrums to get the Fed’s attention. Next week, gold’s strength will hinge on equities moving lower and reallocation of money into precious metals. Silver may even become the leader as we move forward,” Cholly pointed out.

If gold does break above $1,850, it opens the door for $1,870-80 and eventually $1,900, he added.

Fed in focus

The Fed meeting, which will be followed by the central bank Chair Jerome Powell’s press conference, is the biggest macro event next week.

Analysts expect to get more hawkish clues in terms of the first rate hike in March and more clarity around the potential balance sheet runoff. Currently, markets are pricing in four rate hikes in 2022.

“With the Omicron wave now past its peak nationally, there is little to hold the Fed back, particularly if next week brings news of a further acceleration in wage growth,” said Capital Economics chief North America economist Paul Ashworth. “A dissenting vote, to raise rates immediately, from one of the hawkish regional Fed Presidents – who will be voting as part of the annual rotation – could also add fuel to the recent bond market sell-off.”

There is also a risk that the Fed could get even more hawkish by announcing the completion of the tapering process immediately, said ING chief international economist James Knightley.

“The Federal Reserve meeting will be the main focus, and we strongly suspect that we could see the announcement of the ending of QE asset purchases brought forward from the mid-March end-point currently signaled, to an immediate cessation, “Knightley wrote. “In an environment where the economy has fully recovered the lost output from the pandemic, where unemployment is back below 4% and where inflation is at near 40-year highs, it seems strange to say the least for them to continue stimulating the economy.”

Other key data releases to keep an eye on will be Tuesday’s CB consumer confidence, Thursday’s Q4 GDP number, jobless claims and durable goods orders, as well as Friday’s PCE price index.

“We expect to learn that fourth-quarter GDP growth was a slightly disappointing 4.0% annualized. But markets may focus more on the Employment Cost Index (ECI). Private wage growth hit 4.6% y/y in the third quarter and could have climbed as high 5% in the fourth, which would make a March rate hike a near-certainty,” Ashworth noted.

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