Canadian marijuana producer Tilray is lowering the value of its U.S. CBD assets, citing delays from health regulators.
Tilray executives reported a $112 million writedown of the value of its 2019 agreement with Authentic Brands Group. The two companies planned to bring CBD products to mass retail outlets, but the lack of direction from the U.S. Food and Drug Administration on CBD has slowed the rollout, Tilray executives told investors.
The company also said it will slow investment in the hemp company it acquired, Manitoba Harvest.
“We are closely monitoring the FDA’s guidance around CBD and await further clarity before we make further investments in this market,” said Rachel Perkins, Tilray’s senior vice president.
The writedown came as the company announced a net loss of $219 million for the quarter ending Dec. 31, worse than the previous period’s net loss of $35 million and below market expectations.