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Cannabis producer Tilray quietly drops $4 billion sales target for 2024

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Image of Biocant Research Park, home to Tilray's Portugal cannabis facility.

Tilray’s marijuana facility in Portugal is located in Biocant Research Park.

Tilray Brands has quietly abandoned its pledge to achieve annual revenue of $4 billion (5.3 billion Canadian dollars) by the end of 2024, with analysts now predicting the North American cannabis producer will fall far short of that figure.

The company’s management no longer guides for the target, Pablo Zuanic, managing director at New York-based investment banking firm Cantor Fitzgerald, wrote in a note to investors, citing a conference call with Tilray executives in January.

The analyst said Tilray’s target was undone by “delayed” legalization in the United States and Germany plus ongoing issues in Canada, including price compressionoverproduction and slowing national sales.

The Leamington, Ontario- and New York-headquartered business isn’t the only cannabis company tripped up by delayed legalization and U.S. reforms as well as other difficulties.

The industry is bracing for a challenging 2023.

In the U.S., Colorado-headquartered Akerna Corp., the parent company of cannabis technology company MJ Freeway, said last week it’s exiting the marijuana industry.

Also last week, Massachusetts-based multistate operator Curaleaf Holdings said it was exiting California, Oregon and Colorado.

In Europe, Colombian cannabis firm Clever Leaves announced its plans to exit Portugal.

A $4 billion target 

Tilray CEO Irwin Simon originally laid out the ambitious $4 billion target in a conference call with analysts in July 2021.

In a subsequent letter to Tilray shareholders on Aug. 26, 2021, Simon detailed his strategic vision to achieve the $4 billion in annual revenue.

“This is the foundation that will be so essential to getting us from our current combined retail market share in Canada of 16% to our goal of 30% share by fiscal year 2024,” he wrote.

However, Tilray’s market share at home has fallen by roughly 50% since then. Tilray now says it controls roughly 8.3% of the Canadian recreational market.

In an email to MJBizDaily, a spokesperson for the North American cannabis, alcohol and pharmaceutical distribution company conceded that federal legalization in the United States and Germany did not play out as the company had expected.

“The $4 billion sales target by the end of (fiscal year) 24 was conditioned upon federal legalization of cannabis in the U.S. – with a projected $100 billion market – as well as adult-use legalization in Germany,” the spokesperson said.

U.S. lawmakers failed to legalize cannabis, or even pass the SAFE Banking Act, which would have protected financial institutions from federal punishment if they served regulated marijuana companies.

Germany, meanwhile, is already falling behind on its commitment to legalize cannabis production and sales.

Tilray recently reported a $61.6 million net loss for the quarter ended Nov. 30, bringing its loss for the six-month period to $127.4 million.

Some experts warn executives to avoid latching on to optimistic scenarios involving federal legalization for any country, given the complex societal, political and economic forces at play.

Tilray has not replaced the guidance on revenue for fiscal 2024, but the spokesperson said the company expects to generate $70 million-$80 million of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and be free-cash flow positive across all business segments.

However, in a 2022 regulatory filing, the company noted that it “began operating in 2014 and have yet to generate a profit.”

Analysts adapt 

Analysts currently forecast Tilray would be approximately 80% short of its now-shelved goal of $4 billion in sales by year-end 2024.

Zuanic, the Cantor Fitzgerald analyst, lowered sales estimates for Tilray to $613.4 million (down from $659.7 million) in 2023 and $675.1 million in 2024 (down from $732.7 million).

Tammy Chen, an analyst for Toronto-based BMO Capital Markets, has been trimming her fiscal 2024 forecast for Tilray.

The BMO analyst now sees the company generating $643 million in sales in fiscal 2024, down from an earlier forecast of $702 million last summer.

Analysts have been slashing their sales forecasts for Tilray ever since its merger with Aphria in 2021.

For instance, New York-headquartered investment banking company Jefferies expected the newly united Tilray to record more than $1 billion in sales in 2022, before lowering that forecast substantially.

Tilray reported net sales of $628.3 million that year.

Tilray’s focus

The Tilray spokesperson said that, with delayed federal legalization of marijuana in the United States, Tilray plans to continue to grow its businesses in Canada, Europe and the U.S.

In Canada, Tilray said, it’s focused on both organic growth and acquisitions as well as growing medical and adult-use cannabis market share.

“In the U.S., we are not simply waiting for federal legalization of cannabis. We’ve invested in leading and profitable CPG brands across craft beverage-alcohol and wellness consumer products,” the spokesperson said.

Tilray’s U.S.-focused businesses include Breckenridge DistilleryManitoba Harvest and SweetWater Brewing Co.

Tilray recently acquired Montauk Brewing Co., which it says is the fastest-growing craft beer brand in metro New York.

Regarding cannabis production, BMO’s Chen said in a recent note to investors that Tilray’s cannabis cultivation capacity might be too large for the market opportunity.

“Management indicated the lower utilization is temporary,” Chen wrote, “but we wonder if (Tilray’s) capacity will exceed its market opportunity for some time given how slow Canada has been to rationalize the number of LPs, and we believe European rec legalization may take longer than expected.”

Simon said Tilray is considering using excess capacity to grow fruits and vegetables, following an example set by Alberta-based Aurora Cannabis.

The spokesperson said via email that Tilray’s “focus is on driving revenue gains across our diverse portfolio, which will create a strong channel for additional revenue in adult-use cannabis, pending federal legalization.

“This approach allows us to capitalize on the current market conditions and create a strong foundation for future growth in the U.S. federal cannabis industry.”

In Europe, the spokesperson said, Tilray continues to focus on growing the CC Pharma business, which distributes medical cannabis to pharmacies in Germany, and increasing medical marijuana market share in Germany and other markets.

Earlier this month, Tilray cut roughly a quarter of its workforce at its medical cannabis facility in Cantanhede, Portugal.

“We remain poised and ready to leverage our current businesses to be a first-mover upon expected adult-use legalization in Germany and other European markets,” the spokesperson added.

The company’s shares trade as TLRY on the Nasdaq and Toronto Stock Exchange.

Source: https://mjbizdaily.com/cannabis-producer-tilray-quietly-drops-4-billion-sales-target-for-2024/

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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