Canadian marijuana producer Phoena winds-down business, blames high taxes

Canadian cannabis producer Tilray Brands reported a net loss of $1.2 billion (1.5 billion Canadian dollars) for its quarter ended in February and said it agreed to buy troubled rival Hexo Corp. for $56 million.

According to a news release, Canada- and U.S.-based Tilray attributed the quarterly red ink to its declining market capitalization and a net asset reduction resulting from higher interest rates.

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The company, which has offices in Leamington, Ontario, and New York, also booked an inventory valuation write-down worth $55 million.

Tilray said the steep loss has no impact on the company’s compliance with debt covenants, its cash flows or available liquidity.

Sales for the December-February quarter missed analysts’ expectations, coming in at $145.6 million, down from $151.9 million one year earlier.

Cannabis appeared to be a drag on the company’s revenue, with sales from its marijuana business falling to $47.5 million for the

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