Cannabis IPO Alert: Tilray Starts Trading in $144 Million IPO

Cannabis IPOs have a proven history of delivering big gains in a short amount of time.

That was most recently on display with The Green Organic Dutchman (TGOD).

This young and promising Canadian cannabis company began trading on the Toronto Stock Exchange on May 7.

Within four weeks shares were up more than 100%. Despite a pullback, shares are still up 50% from the IPO price.

Cannabis Stock trades sent out a buy signal on TGOD on May 6 – helping our member capitalize on this awesome opportunity.

Take a look below.

Today, the cannabis IPO game is heating up. And I see this reliable pattern ready to strike again.

One of the largest privately owned cannabis companies in the world is about to make history and become the first Canadian cannabis cultivator ever to score a direct listing on the US-based NASDAQ stock exchange.

  • This early global leader is on pace to have 866,000 square feet of cannabis production by the end of 2018.
  • Has an unmatched global distribution network.
  • Expanding into Germany’s high-growth cannabis market.
  • Shares set to start trading on the NASDAQ on Thursday.

Tilray (TLRY) is one of the largest privately owned cannabis companies in Canada and an early leader in the global cannabis market.

Tilray is about to make history as the first ever Canadian cannabis cultivator to land a direct listing on the US-based NASDAQ exchange under the ticker symbol TLRY.

Here are a few more details from the press release.

Tilray Inc., a vertically-integrated and federally-licensed cannabis cultivator, processor and distributor, today announced that it has launched an initial public offering (IPO) of its Class 2 common stock pursuant to a registration statement on Form S-1 previously filed with the United States Securities and Exchange Commission (the “SEC”). Tilray has applied to list its common stock on the Nasdaq Global Select Market under the ticker symbol “TLRY”.

Tilray is offering 9,000,000 shares of Class 2 common stock at an initial price to the public between US$14.00 and US$16.00 per share (approximately CAD$18.40 to CAD$21.00 per share1). Tilray intends to grant the underwriters a 30-day over-allotment option to purchase up to 1,350,000additional shares.

This IPO is a big win for Tilray and the entire global cannabis sector.

There’s nothing easy about getting listed on the NASDAQ. It requires mountains of regulatory filing, intense financial scrutiny and millions in legal fees.

It shows the industry is quickly gaining credibility. And a direct US listing on the NASDAQ makes it easier for US investors to buy and sell shares of Tilray.

Tilray pulled a NASDAQ listing because this company is a beast.

Tilray’s pre-ipo filings had the company valued at around $1.5 billion.

After the IPO Tilray should immediately be one of the top ten largest cannabis companies in Canada.

Tilray is on pace to have 886,000 square feet of cannabis production by the end of 2018.

It has offices all around the world in key cannabis markets, including Toronto, Berlin and Sydney. It owns cannabis greenhouses in Canada and Portugal.

Tilray sells cannabis in 11 different countries through a global distribution network that is rarely matched in the industry. Take a look.

Tilray’s cannabis assets have already been delivering solid results even before recreational cannabis has been legalized.

The company’s second-quarter sales jumped 62% from last year to $20.5 million.

Looking forward, Tilray is in a great position to cash in on Canada and other countries across the globe embracing legalization.

Risks to Consider

Like many cannabis companies, Tilray is trading at a sharp premium to current sales. However, I am expecting to see big sales growth in the next few years and I expect Tilray’s sales and earnings valuations to normalize.

The Big Picture

Tilray is an early leader in the high-growth global cannabis market. The company is set to make history on Thursday as the first-ever Canadian cannabis cultivator to score a direct listing on the US-based NASDAQ exchange. That gives Tilray a big shot of credibility and opens up a huge pool of potential new investors.

About the Author

Michael Vodicka is an equity analyst with more than 20 years of experience trading and investing. His research has been featured in some of the industry’s most respected publications. He has been investing and leading investors in the cannabis sector since 2013.