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Tilray Inc. becomes the first cannabis producer to make an IPO in the United States.

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For Tilray Inc., one of the oldest and largest legal producers of medical cannabis in Canada, the road was long.

It began 18 months ago when the Nanaimo, BC, company listed and held meetings with potential investors on both sides of the border. Then, last summer, his plans changed after 15 US badet managers told Tilray that they would be much more forced to invest when they became public on a payday loan. important American stock market.

And that is what happened this week.

On Thursday, Tilray traded on the Nasdaq, becoming the first cannabis producer to complete an initial public offering in the United States. He sold nine million shares at US $ 17 each as part of his IPO, raising $ 153 million US and valuing the company at $ 1.6 billion US.

Stocks climbed more than 30 percent the day to close The strong demand from investors as part of the IPO allowed the company to sell its new shares beyond its previously wide range disclosed from US $ 14 to US $ 16. The offer – which, according to one source, was over 12 times oversubscribed – was sold to investors primarily in the United States. They included top-notch, blue-chip mutual funds that have not yet invested in the cannabis industry and whose mandates prevent them from owning shares listed outside of the US, said Brendan Kennedy, CEO of Tilray. as a company and for the sector as a whole, "he added." We think this means a shift in perceptions and a step towards further institutionalizing the sector. "

Tilray's marketing prior to his IPO signifies that he spent 100 hours in the air over the last month, traveling to meet potential investors in New York, Toronto, Edmonton, Denver, Boston, Baltimore, Chicago, San Francisco, London, Frankfurt, and Hong Kong.

In recent years, dozens of early-career marijuana companies with little history of exploitation have become public in Canada in recent years. It costs millions to build and operate a cannabis production plant, and it has not been easy for these companies to borrow money from banks or other sources. sell shares e n as a private entity.

The stock market was much more generous by an amazing winter rally in pot stocks. According to a Canaccord Genuity research report, public cannabis companies raised about $ 3.6 billion in the first six months of the year.

History Continues Under Advertising

Leading players used their treasury positions and inflated stock prices to boost their business, expand their production domestically and abroad, and buy shares. companies throughout the supply chain. Tilray, the last of the major Canadian producers to come forward, was largely on the sideline

. Kennedy does not bother much, though. He says he's here for the long haul.

"It's an industry filled with pufferies, grand declarations and empty promises," he said. "It is not us, we are methodical, we are taking an important step, we are dismantling barrier after barrier and we are adopting a very long-term vision of this industry."

The company was founded and funded by Privateer Holdings Inc., a Seattle-based private equity firm, and its investors, including the Peter Thiel Founders Fund In February, Tilray raised $ 60 million from 10 investors, nine from the United States, and one in Canada – the Anson Funds of Toronto The American lenders include Farallon Capital of San Francisco and Indus Capital of New York, according to regulatory filings.

These early investors exercised their options to participate in the company. IPO, said Kennedy [19659000]. The valuation of 1.6 billion US dollars is less than that of the four largest producers in Canada and the same as that. MedMen Enterprises Inc., a cannabis retailer in the United States with 15 stores in three states, was released in May.

Kennedy stated that Tilray's investors were seeking to support a company that is regulated by the United States Securities and Exchange Commission and complies with US accounting standards. In Canada, he said that accounting principles ensure that revenues are accounted for faster than they should and that inventories are more profitable than they should be.

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Tilray Inc. becomes the first cannabis producer to make an IPO in the United States.

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