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Tilray (TLRY) stock plunged yesterday, July 29, following a brutal fiscal Q4 earnings report that reinforced concerns about Tilray’s strategic direction and financial health spooking investors. 

Below is what, specifically, triggered the drop:

• Reported Staggering Q4 Net Loss: The company reported a staggering quarterly loss, driven by a $1.4 billion non-cash impairment charge tied to its 2021 acquisitions during the Aphria merger.
• Q4 Revenue Came In Below Analyst Expectations:
  • Cannabis Segment Revenue Declined: Revenue dropped due to halted product lines and international permit delays.
  • Beverage Segment Revenue Fell: Revenue fell impacted by restructuring under “Project 420” and product rationalization.

Tilray's stock dropped 17% yesterday while the 4 other constituents in the Canadian Cannabis LP Stocks Portfolio reacted negatively to Tilray's Q4 results yesterday, July 29th, as follow, in ascending order, with any specific catalyst that contributed to the decline :

1. Tilray Brands (TLRY) DOWN 17.1% 
   • Catalyst: As above
2. Aurora Cannabis (ACB): DOWN 7.1%
   • Catalyst: Athough Aurora is a Canadian Licensed Producer (LP) it has strategic interests in the U.S. and the failure of the DEA to provide a timeline for cannabis rescheduling rattled investor confidence.
3. Canopy Growth (CGC): DOWN 6.4%
   • Catalyst: After the market closed on July 28, Canopy revealed plans to sell additional shares in both the U.S. and Canada at market prices which spooked investors, as it signaled potential dilution and raised concerns about the company’s cash position.
4. Organigram Global (OGI): DOWN 5.4%
   • Catalyst: In addition to being swept up in the overall cannabis market downturn Organigram’s trading volume on July 29th declined 71% from its average, suggesting weak demand and limited buying support.
5. Cronos Group (CRON): DOWN 2.4%
   • Catalyst: Cronos' modest decline may suggest that some investors are waiting on the sidelines for clearer guidance in the upcoming Q2 earnings report scheduled for August 7.

Summary

The above 5 constituents in the Canadian Cannabis LP Stocks Portfolio declined 6.5% yesterday.

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