Canada Based Tilray Capitalizes on Stock Price Growth

Canada Based Tilray Capitalizes on Stock Price Growth
Founders of Seattle-based Privateer Holdings Inc.in May 2010 and the firm later invested in Canadian pot firm Tilray Inc which has provided them with $12 million profit (Image via Fortune)

Canada Based Tilray capitalizes on stock price growth

Canadian cannabis producer, Tilray Incorporated has capitalized on the massive surge in price that their stock has received recently.

The company has provided their main shareholder, a small private equity firm dedicated to shaping the future of the legal cannabis industry.

Privateer Holdings was founded in Seattle in 2010 by three entrepreneurs, Michael Blue, Brendan Kennedy, and Christian Groh; Brendan Kennedy is the current Chief Executive Officer. All three gentlemen are known for their decades of experience in investment banking and venture capital.

Kennedy and Blue are both graduates of Yale School of Management’s MBA program, and Kennedy and Groh formerly worked together at SVB Analytics, a non-bank affiliate of Silicon Valley Bank.

The company represents a group of investors from around the world seeking to end cannabis prohibition and the social harms it causes. They have used a combination of acquisitions and investments designed to focus on creating a portfolio of global brands that will lead, legitimize and define the future of cannabis.
farm with many cannabis plants
Tilray has seen its shares rise by 700 percent since its IPO barely two months ago (Image via CBC.ca)

 

 

Investors

Privateer Holdings holds 76 percent of Tilray, a stake which is now worth more than $12 billion after the stock soared more than 10-fold from its July public offering.

Tilray is a British Columbian-based company which mustered $20 million in revenue last year. The company has benefited substantially from the rise in demand for marijuana stock.

On Tuesday, the company announced that it has received approval from the U.S. Drug Enforcement Administration agents post a medical cannabis product into the U.S. to be used in a clinical trial.

They will be exporting capsules containing a formulation with two active ingredients extracted from the cannabis plant. They are examining the drug as a potential treatment for adults with essential tremor.

The formulation will contain cannabidiol and tetrahydrocannabinol, better known as CBD and THC, and will be used in a trial scheduled to begin in early 2019.

Peter Andreas Thiel is an American entrepreneur who is known for making unconventional investments in different industries. He is the master behind Thiel’s Founders Fund, which became the first formal investor in the cannabis industry through Privateer Holdings.

Founders Fund has also supported Airbnb, Lyft, Space Exploration Technologies Corp., and Palantir Technologies Inc.

Tilray celebrates stock price
Tilray’s momentum has sources as they ended Wednesday at $104.95 per share (Image via PotNetwork)

 

 

Tilray’s Productivity

Recently, Tilray has drawn more interest than most of the other cannabis production companies, partly because of its listing on the NASDAQ Stock Market, which has allowed U.S investors and hedge funds to tap into the market.

On Wednesday, Tilray’s stock jumped another 38 percent to $214 at in New York, surpassing the value of  American Airlines Group Inc.

Reports have shown that Tilray has surpassed Canopy Growth Corporation as the world’s largest cannabis company, with a market value of more than $20 billion.

In the past decade, Telsa Inc is the only U.S listings that is trading at a higher premium price to its IPO and it has taken them eight years to rise that high. However, just two months after going public Tilray has pushed into second place.

On Wednesday, their shares pushed to 1,304 percent above the offering price.

Kennedy explained that so far they have agreements to sell marijuana in Canadian pharmacies including Shoppers Drug Mart.

The company has also created a brand called High Park, which focuses on the recreational market in Canada. So far it has secured supply agreements with seven provinces and territories, but they aspire to expand outside of Canada. Tilray’s new focus is on medicinal marijuana, which is legal in 12 countries that span five continents.

“Our long-term vision is if a patient walks into any pharmacy in any country in the world that has legalized cannabis that patient should be able to obtain a Tilray product. That’s our global goal.”

He added that Tilray is investing in production capacity in Portugal so it can supply products to the EU from within Europe. Additionally, they also have a deal to develop medicinal cannabis with the Canadian division of Novartis AG of Switzerland.

Kennedy stated that they have no interest in being bought over by a large consumer company because he is hopeful that Tilray one day be worth more than $100 billion.

 

 

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