Tilray Inc. (TLRY) - Get Report shares extended declines in pre-market trading Wednesday after the Canadian cannabis group posted a wider-than-expected third quarter loss as selling prices halved in the world's first major market for legalized marijuana.

Tilray said its loss for the three months ending in September was pegged at 36 cents per share, down 80% from the same period last year and 7 cents wider than the Street consensus forecast. Group revenues rose four-fold to $51.1 million, Tilray said, but average selling prices halved to $3.25 per gram and spending costs surged nearly four times higher than last year to just under $17 million, eating into the group's bottom line.

Looking into 2020, Tilray said it expects inventory levels, which have been elevated by a ramp-up in production following Canada's move to legalize recreational marijuana use in October of last year, to begin to decrease. It also sees positive operating earnings next year and reiterated its long-term ambition of capturing a "sizeable share" of the global cannabis market while earning a gross profit margin of around 50%. 

"Our performance in the third quarter, including solid revenue growth and sequential gross margin expansion, reflects the positive business trends we have underway," said CEO Brendan Kennedy. "We are in the early days of seeing our strategic initiatives bear fruit - including our European expansion, brand portfolio evolution and strategic partnership product launches. We continue to expect significant growth in the fourth quarter and into 2020."

"Beyond that, our strong global infrastructure and supply chain are a critical competitive advantage and our team is focused on maximizing the substantial opportunity we have to deliver long-term, sustainable value to our shareholders," he added.

Tilray's U.S.-listed shares were marked 3.1% lower in pre-market trading Wednesday to indicate an opening bell price of $20.91 each, a move that would extend the stock's year-to-date decline past 72%.