Proactiveinvestors USA & Canada Tilray Inc https://www.proactiveinvestors.com Proactiveinvestors USA & Canada Tilray Inc RSS feed en Tue, 19 Mar 2019 05:02:09 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Tilray Inc misses 4Q earnings estimates but shares rally in after-hours trading ]]> https://www.proactiveinvestors.com/companies/news/216688/tilray-inc-misses-4q-earnings-estimates-but-shares-rally-in-after-hours-trading-216688.html Tilray Inc (NASDAQ:TLRY) shares ticked upwards Monday in after-hours trading, despite the cannabis company reporting fourth-quarter earnings that missed estimates, citing higher operating costs and expenses.  

Shares of Tilray, which closed 0.4% lower at US$72.24 on Monday in New York jumped in after-hours trading, up 3% at US$72.24. 

The Nanaimo-based cannabis company reported revenue of US$15.5 million in the fourth quarter, against analyst expectations of US$17 million. 

Tilray's net loss during the period was $31 million, or $0.33 per share, against a net loss in the year-ago period of $3 million, or $0.04 a share. 

READ: Buds & Duds: Tilray rises ahead of earnings release, Harvest One and Flowr ink sales deals

According to the company, the higher loss was due to an increase in operating expenses related to continued growth, expansion of international teams, and costs related to financing and mergers-and-acquisitions activity. 

“Looking ahead, we remain committed to pursuing global growth opportunities and will be disciplined in deploying capital, particularly in the United States and Europe, where we believe we have multiple paths for value creation," said President and CEO Brendan Kennedy in a statement. 

Contact Katie Lewis at katie@proactiveinvestors.com

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Mon, 18 Mar 2019 15:57:00 -0400 https://www.proactiveinvestors.com/companies/news/216688/tilray-inc-misses-4q-earnings-estimates-but-shares-rally-in-after-hours-trading-216688.html
<![CDATA[Media files - Buds & Duds: Tilray rises ahead of earnings release, Harvest One and Flowr ink sales deals ]]> https://www.proactiveinvestors.com/companies/stocktube/12635/buds--duds-tilray-rises-ahead-of-earnings-release-harvest-one-and-flowr-ink-sales-deals-12635.html Mon, 18 Mar 2019 15:11:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/12635/buds--duds-tilray-rises-ahead-of-earnings-release-harvest-one-and-flowr-ink-sales-deals-12635.html <![CDATA[News - Buds & Duds: Tilray rises ahead of earnings release, Harvest One and Flowr ink sales deals ]]> https://www.proactiveinvestors.com/companies/news/216677/buds--duds-tilray-rises-ahead-of-earnings-release-harvest-one-and-flowr-ink-sales-deals-216677.html Cannabis stocks grew nicely Monday, as US markets continued to make gains. 

The North American Marijuana Index, which tracks leading cannabis stocks, was up 2.2% to 298. 

Buds

Shares of Tilray Inc (NASDAQ:TLRY) are up Monday in anticipation of a fourth-quarter earnings release after the bell. A lot changed since the company’s third-quarter wrapped in September — namely, Canada legalized cannabis. Analysts expect a loss of $0.12 per share on average on revenue of $14.15 million.

The stock grew 0.7% to $73.

Harvest One Cannabis Inc (CVE:HVT) (OTCMKTS:HRVOF) reached an agreement Monday to supply medical cannabis to Shoppers Drug Mart via its wholly-owned subsidiary and cultivation arm United Greeneries Ltd. The Vancouver-based company will provide Satipharm brand — another Harvest One subsidiary — medical cannabis to be sold on Shoppers’ website.

Shares spiked about 15% to C$0.91 on the TSXV and US$0.69 on OTC markets.

READ: Harvest One to supply medical cannabis to Shoppers Drug Mart

The Flowr Corporation (CVE:FLWR) will also have products available at Shoppers Drug Mart, the company announced Monday. The Markham, Ontario-based company’s FlowrRx products will be available on the pharmacy’s medical cannabis website.

Shares blossomed, up 2% to C$6.96.

Duds

GW Pharmaceuticals (NASDAQ:GWPH) agreed to sell its Rare Pediatric Disease Priority Review Voucher for $105 million, the company announced Monday. The UK-based company was the first cannabis company to receive the voucher from the FDA for its treatment of seizures associated with rare childhood epilepsy, according to MarketWatch. The company plans to invest the revenue into the commercial launch of the drug, known as Epidiolex, in the US and Europe.

Shares dropped 1.3% to $167.12.

 

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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Mon, 18 Mar 2019 12:50:00 -0400 https://www.proactiveinvestors.com/companies/news/216677/buds--duds-tilray-rises-ahead-of-earnings-release-harvest-one-and-flowr-ink-sales-deals-216677.html
<![CDATA[News - Buds & Duds: Cannabis stocks blunted by widespread market woes ]]> https://www.proactiveinvestors.com/companies/news/216116/buds--duds-cannabis-stocks-blunted-by-widespread-market-woes-216116.html The cannabis sector took a hit Friday as the market adjusts to a disappointing US jobs report.

The Marijuana Index, which tracks leading North American cannabis companies, slipped 1.6% to 272.58.

Duds

Tilray Inc (NASDAQ:TLRY) stock is hurting after Jefferies hit the company with an Underperform rating and a $61 price target — 12% lower than its Tuesday close. Investors responded accordingly, dropping the pharmaceutical company’s share price to $69.19.

Cronos Group Inc (NASDAQ:CRON) is feeling the market’s downward pull despite announcing the completion of a C$2.4 billion investment from Altria Group Inc. The privately-held company’s investment represents a 45% stake in Cronos. Shares of the principal investment firm were recently down nearly 1% to $22.16.

Also on the decline are Surna Inc (OTCQB:SRNA), down 10.3% to $0.07, and Aphira (NYSE:APHA), which declined 0.8% to $9.53.

Buds

22nd Century Group Inc (NYSEAMERICAN:XXII) bucked the sector’s gloomy trend Friday after the company announced that it cut its year-over-year net loss almost in half. The biotech firm posted a net loss of about $8 million in 2018, down from $13 million losses in 2017. Investors like the progress, sending the stock up 13.3% to $2.04.

 

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Fri, 08 Mar 2019 11:37:00 -0500 https://www.proactiveinvestors.com/companies/news/216116/buds--duds-cannabis-stocks-blunted-by-widespread-market-woes-216116.html
<![CDATA[News - Buds & Duds: Cannabis stocks stumble on first trading day in March ]]> https://www.proactiveinvestors.com/companies/news/215644/buds--duds-cannabis-stocks-stumble-on-first-trading-day-in-march-215644.html Cannabis stocks looked poised to end the week on a disappointing note, with most of the major players in the US and Canada on the decline.

The North American Marijuana Index, which tracks leading cannabis stocks in the US and Canada, failed to keep pace with the gains on Wall Street and shed 1.3% to hit 290.50.

Buds

There were very few buds to choose from Friday, but 1933 Industries (CSE:TGIF) (OTCQX:TGIFF) made its way onto the list of gainers, adding 1.9% to hit C$0.53 in Canadian trade.

This week, the company released a new educational short film, The Dawn of a New Era, by documentary filmmaker Atlee James. The movie tells the story of weed from the dawn of civilization through its prohibition to the current trend pushing towards legalization.

Duds

The list of duds, meanwhile, was lengthy and included Tilray (NASDAQ:TLRY), which reversed direction mid-morning and fell 2.55% to $79.24.

The Canadian cannabis behemoth announced late Thursday that it has closed on its move to pay C$419 million to buy Manitoba Harvest, a Winnipeg, Manitoba based company which bills itself as the world’s largest hemp food manufacturer.

The deal allows the cannabis company to forge ahead in the lucrative market for cannabidiol (CBD), which is derived from hemp plants as well as sell hemp foods and supplements.

Joining the laggards as well was Green Growth Brands Inc of Columbus, Ohio, which slipped by 3% to hit $3.60.

The company recently revealed its plans to set up 400 sales kiosks to market its CBD (cannabidiol) lotions and other sorts of products this year in malls and retailers like DSW stores, the shoe specialist.

CEO Peter Horvath also said this week that he remains committed to Green Growth’s all-stock hostile bid for its Canadian rival Aphria (NYSE:APHA).

Aphria last month rebuffed Green Growth’s bid, which put its value at roughly C$2.35 billion (US:$1.76 billion) on the view that it “significantly undervalued” the company and is “inadequate”. Green Growth offered Aphria stakeholders 1.5714 shares of Green Growth stock for each Aphria share.

Aphria shares were also among the duds and lost 2% to hover at $10.15.

Also trading lower on no reported news were Aurora Cannabis (TSE:ACB), which shed 1.4% to C$9.78; Curaleaf Holdings (CSE:CURA), which fell 2.8% to C$10.12; and MariMed Inc (OTCQB:MRMD), which dropped 2.6% to US$3.80.

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Fri, 01 Mar 2019 11:42:00 -0500 https://www.proactiveinvestors.com/companies/news/215644/buds--duds-cannabis-stocks-stumble-on-first-trading-day-in-march-215644.html
<![CDATA[News - Tilray buys world's largest hemp food manufacturer Manitoba Harvest for C$419M ]]> https://www.proactiveinvestors.com/companies/news/214980/tilray-buys-world-s-largest-hemp-food-manufacturer-manitoba-harvest-for-c419m-214980.html Tilray Inc (NASDAQ:TLRY) is splashing out and paying C$419 million to buy Manitoba Harvest, which bills itself as the world’s largest hemp food manufacturer.

The deal allows the cannabis company to forge ahead in the lucrative market for cannabidiol (CBD), which is derived from hemp plants, as well as sell hemp foods and supplements.

“We’re excited to work with Manitoba Harvest to develop and distribute a diverse portfolio of branded hemp-derived CBD food and wellness products in the US and Canada,” said Brendan Kennedy, Tilray’s CEO, in a statement.

READ: Tilray acquires Natura Naturals Holdings in deal worth up to C$70M

Under the agreement’s terms, Tilray, which is based in Nanaimo, British Columbia, will acquire Manitoba, which is based in Winnipeg,  in a cash and stock deal worth up to C$419 million (US$317 million) pending the achievement of certain milestones after the closing of the transaction.

Tilray will pay C$150 million in cash and C$127.5 million in shares upon the closing of the transaction. Six months later, Tilray will pay C$50 million in cash and C$42.5 million in stock. Tilray will also issue an additional C$49 million in stock if Manitoba Harvest achieves performance milestones in 2019.

READ: Tilray and Anheuser-Busch InBev enter partnership to research cannabis drinks

By leveraging Manitoba’s distribution network, Tilray plans to accelerate its expansion into the US and Canada, where legal, for CBD products. The passage of the US farm bill, which sanctions industrial hemp and CBD, represents a windfall for companies like Tilray that are eager to sell CBD products in the US.

Products in the Manitoba Harvest portfolio include Hemp Hearts, Hemp Oil, Hemp Yeah! Granola, Hemp Yeah protein powder and Hemp Bliss milk. Manitoba has plans to launch a line of CBD containing hemp extracts as well as a line-up of Hemp Yeah! Wellness bars this summer.

Tilray shares traded 6.6% higher at $82.11 in morning trade on Wednesday.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Wed, 20 Feb 2019 10:02:00 -0500 https://www.proactiveinvestors.com/companies/news/214980/tilray-buys-world-s-largest-hemp-food-manufacturer-manitoba-harvest-for-c419m-214980.html
<![CDATA[Media files - Buds & Duds: Management changes drive trading action for pot stocks ]]> https://www.proactiveinvestors.com/companies/stocktube/12057/buds--duds-management-changes-drive-trading-action-for-pot-stocks-12057.html Thu, 31 Jan 2019 14:04:00 -0500 https://www.proactiveinvestors.com/companies/stocktube/12057/buds--duds-management-changes-drive-trading-action-for-pot-stocks-12057.html <![CDATA[News - Tilray acquires Natura Naturals Holdings in deal worth up to C$70M ]]> https://www.proactiveinvestors.com/companies/news/213076/tilray-acquires-natura-naturals-holdings-in-deal-worth-up-to-c70m-213076.html Shares of Tilray Inc (NASDAQ:TLRY) surged in Tuesday’s pre-market session after the Canadian cannabis company unveiled a deal to buy Natura Naturals Holdings Inc for C$35 million in cash and stock.

When the deal closes, Tilray will obtain Natura’s 662,000 square-foot greenhouse cultivation facility and all subsequent cannabis output from the facility.

Investors applauded the news, sending Tilray shares up 1.7% to $78.51 before the opening bell.

READ: Tilray inks deal with Authentic Brands to market consumer cannabis brands

Under the agreement’s terms, Tilray will deliver C$15 million in cash and C$20 million in Tilray class 2 common stock at the deal’s closing, which is expected within the next 30 days.

If Natura reaches certain quarterly milestones over the subsequent 12-month period, up to C$35 million of Tilray stock will be paid, raising the deal’s purchase price to C$70 million.

“Through an extensive and thorough search for the right supply partner, we’re pleased to have come to a mutually-beneficial agreement with Natura,” said Brendan Kennedy, Tilray’s CEO, in a statement.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Tue, 22 Jan 2019 08:20:00 -0500 https://www.proactiveinvestors.com/companies/news/213076/tilray-acquires-natura-naturals-holdings-in-deal-worth-up-to-c70m-213076.html
<![CDATA[News - Tilray inks deal with Authentic Brands to market consumer cannabis brands ]]> https://www.proactiveinvestors.com/companies/news/212613/tilray-inks-deal-with-authentic-brands-to-market-consumer-cannabis-brands-212613.html Shares in Tilray Inc (NASDAQ:TLRY) climbed in Tuesday’s premarket session after it announced that it has inked a deal with Authentic Brands Group to develop and market consumer cannabis brands around the world.

The deal was announced the same day that the cannabis company’s lock-up period expired, allowing executives and other early investors to sell their stock.

With a global retail footprint of more than 100,000 points of sale and more than 4,500 branded stores and shop-in-shops, Authentic’s portfolio generates roughly $9 billion in retail sales annually.

Under the deal, Tilray is hoping to get its cannabis products into more brick-and-mortar and online outlets rather than the cannabis dispensaries’ direct-to-patient sales that are Tilray’s mainstay right now. It is attractive for Tilray that Authentic currently reaches nearly 250 million social media followers across key digital platforms.

Shares in Tilray dropped 14% to $86.59.

READ: Tilray shares soar after biggest shareholder pledges to hold onto stake in first half of 2019

“We are thrilled to partner with Authentic, a global leader known for expertly managing and marketing an owned portfolio of iconic brands,” said Tilray CEO Brendan Kennedy. “As we work to expand Tilray’s global presence, this agreement leverages our complementary strengths and will be accretive to our shareholders as we reach new consumers across the entertainment, fashion, beauty, home and health and wellness sectors.”

The deal with Authentic is a revenue-sharing agreement, with Tilray supplying various cannabis-based products to be sold through Authentic’s distribution channels. In exchange, Tilray will initially pay Authentic US$100 million and up to US$250 million in cash and stock, subject to the achievement of certain commercial milestones and on changes to regulations in the US and elsewhere. Tilray will receive 49% of the net revenue from cannabis products with a guaranteed minimum of up to $10 million each year for 10 years.

Initially the companies will focus on cannabidol, or CBD, products, which do not have a psychoactive effect on most people in the same way tetrahydrocannabinol, or THC, does.

Just last month, Tilray entered a research partnership with Anheuser-Busch InBev SA (NYSE:BUD), the world’s largest brewer.

READ: Tilray and Anheuser-Busch InBev enter partnership to research cannabis drinks

The new partnership will be forged via Anheuser’s Canadian subsidiary Labatt Breweries while Tilray will be involved through its subsidiary High Park Co.

The two companies will each invest up to $50 million to conduct research on nonalcoholic beverages containing THC and CBD. 

The idea is that the investigative work will prepare the companies for the commercial launch of cannabis drinks. 

Tilray focuses on medical cannabis research, cultivation, processing and distribution. The Canadian pharmaceutical and cannabis company is headquartered in Nanaimo, British Columbia.

–This story was updated to give the latest stock price–

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Tue, 15 Jan 2019 08:43:00 -0500 https://www.proactiveinvestors.com/companies/news/212613/tilray-inks-deal-with-authentic-brands-to-market-consumer-cannabis-brands-212613.html
<![CDATA[News - Tilray shares soar after biggest shareholder pledges to hold onto stake in first half of 2019 ]]> https://www.proactiveinvestors.com/companies/news/212416/tilray-shares-soar-after-biggest-shareholder-pledges-to-hold-onto-stake-in-first-half-of-2019-212416.html Shares of Tilray Inc (NASDAQ:TLRY) soared in Friday's pre-market session after its largest stakeholder Privateer Holdings said it won’t sell shares in the Canadian cannabis company in the first half of 2019.

In a statement, the Seattle-based private equity group said it won’t register, sell or distribute any of its 75 million shares in Tilray when a lockup period ends next week.

The news is boosting Tilray's share price, which surged 17.11% before the opening bell to hit $94.16. In the regular session, shares rose over 24% to $100.36

READ: Tilray revenue soars 85% in 3Q as company takes aim at cannabis expansion

“Privateer Holdings strongly believes in Tilray’s long-term global growth strategy and pioneering role in shaping the future of the legal cannabis industry,” said Michael Blue, managing partner of Privateer Holdings in a statement. “Given this, we do not have plans to register, sell or distribute the shares Privateer holds in Tilray during the first half of 2019.”

When Privateer does distribute Tilray shares, it will do so in an “orderly and deliberate manner to maximize tax-efficiency considerations for Privateer investors, while also taking into consideration potential impacts on Tilray’s public float,” said Blue.

Privateer Holdings is a private equity firm that invests solely in legal cannabis and is Tilray's largest stakeholder as it controls roughly three-quarters of its outstanding shares. Thus far, the company has raised $200 million to invest in cannabis brands.

Since Tilray completed its Nasdaq IPO in July of 2018 at $17 per share, its shares have been on a rollercoaster course; they reached a 52-week high of $300 last September before paring back gains.

READ: Tilray and Anheuser-Busch InBev enter partnership to research cannabis drinks

Just last month, Tilray entered a research partnership with Anheuser-Busch InBev SA (NYSE:BUD), the world’s largest brewer.

The new partnership will be forged via Anheuser’s Canadian subsidiary Labatt Breweries while Tilray will get involved through its subsidiary High Park Company.

The two companies will each invest up to $50 million to conduct research on non-alcoholic beverages containing THC (tetrahydrocannabinol) and CBD (cannabidiol), the cannabis derivatives.

The idea is that the investigative work will prepare the companies for the commercial launch of cannabis drinks.

Tilray focuses on medical cannabis research, cultivation, processing and distribution.

The Canadian pharmaceutical and cannabis company is headquartered in Nanaimo, British Columbia.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Fri, 11 Jan 2019 08:34:00 -0500 https://www.proactiveinvestors.com/companies/news/212416/tilray-shares-soar-after-biggest-shareholder-pledges-to-hold-onto-stake-in-first-half-of-2019-212416.html
<![CDATA[News - Tilray and Anheuser-Busch InBev enter partnership to research cannabis drinks ]]> https://www.proactiveinvestors.com/companies/news/211583/tilray-and-anheuser-busch-inbev-enter-partnership-to-research-cannabis-drinks-211583.html Anheuser-Busch InBev SA (NYSE:BUD), the world's largest brewer, is taking a gamble on the cannabis market by entering a research partnership with Tilray Inc (NASDAQ:TLRY), the cannabis producer.

The new partnership will be forged via Anheuser’s Canadian subsidiary Labatt Breweries while Tilray will get involved through its subsidiary High Park Company. The two companies will each invest up to $50 million to conduct research on non-alcoholic beverages containing THC (tetrahydrocannabinol) and CBD (cannabidiol), the cannabis derivatives.

The idea is that the investigative work will prepare the companies for the commercial launch of cannabis drinks.

READ: Tilray revenue soars 85% in 3Q as company takes aim at cannabis expansion

"We intend to develop a deeper understanding of non-alcohol beverages containing THC and CBD that will guide future decisions about potential commercial opportunities,” said Kyle Norrington, president of Labatt Breweries of Canada.

The venture will only be carried out in Canada. Anheuser Busch’s push into the cannabis sector follows its rival Constellation Brands Inc (NYSE:STZ), the maker of Corona Beer’s move last August to invest $4 billion in Canopy Growth (NYSE:CGC), another major Canadian cannabis company.

READ: Tilray adds Howard Dean and others to newly formed international advisory board

Investors applauded the tie-up, sending Tilray shares up 11.8% to $79.38 before Thursday’s opening bell while Anheuser Busch shares jumped 1.45% to $69.80.

Headquartered in Nanaimo, British Columbia, Tilray is one of a handful of cannabis companies to list in the US.

AB InBev, which is based in Leuven, Belgium, offers an array of beers including Stella Artois, Beck’s, Hoegaarden and Budweiser.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Thu, 20 Dec 2018 08:39:00 -0500 https://www.proactiveinvestors.com/companies/news/211583/tilray-and-anheuser-busch-inbev-enter-partnership-to-research-cannabis-drinks-211583.html
<![CDATA[News - Tilray inks medical marijuana supply deal with division of Big Pharma giant Novartis ]]> https://www.proactiveinvestors.com/companies/news/211418/tilray-inks-medical-marijuana-supply-deal-with-division-of-big-pharma-giant-novartis-211418.html Tilray Inc (NASDAQ:TLRY) announced Tuesday it will be partnering with Swiss pharmaceutical giant Novartis AG, inking a supply and distribution agreement for medical marijuana.

Shares of the British Columbia-based cannabis company surged more than 7% to US$70.75 in Tuesday pre-market trading.

The cannabis company turned its existing partnership with Sandoz Canada Inc into an agreement with parent company Sandoz AG, a division of Novartis.

Tilray and Sandoz will collaborate on non-smokable products, including some co-branded cannabis products.

“It just made sense for us to reach an agreement with a company like Sandoz, which is known for its focus on patients, its reliable supply chain, a well-established sales force and a global distribution network,” said Tilray CEO Brendan Kennedy in a phone interview with Bloomberg.

Kennedy noted that a product with the Sandoz logo on it lends credibility to Tilray’s product.

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Tue, 18 Dec 2018 09:23:00 -0500 https://www.proactiveinvestors.com/companies/news/211418/tilray-inks-medical-marijuana-supply-deal-with-division-of-big-pharma-giant-novartis-211418.html
<![CDATA[News - Tilray subsidiary to expand its presence in Québec via investment in cannabis producer ROSE LifeScience ]]> https://www.proactiveinvestors.com/companies/news/211257/tilray-subsidiary-to-expand-its-presence-in-qubec-via-investment-in-cannabis-producer-rose-lifescience-211257.html Tilray Inc (NASDAQ:TLRY) subsidiary High Park Farms Ltd is investing C$7.5 million into cannabis producer ROSE LifeScience Inc as it looks to increase its presence in the Québec market.

Shares of Tilray climbed more than 3% to US$77.93 in Friday morning trading.

As per the terms of the deal, Tilray will subscribe for 41 Class A shares, amounting to 12% in the capital of ROSE LifeScience.

READ: Biome Grow shares now deemed DTC eligible; shares perk up

The companies also inked an exclusive sale, supply, distribution and marketing agreement with the Quebec-based cannabis producer to deliver High Park adult-use cannabis products in the province, including its Dubon brand, which is only available through the Société québécoise du cannabis.

“This investment in a Québec-owned and operated organization will enable High Park to better serve this partnership and the adult-use market in Québec,” said High Park’s Chief Marketing Officer Adine-Fabiani Carter in the company’s press release.

The construction of ROSE’s 54,000 square foot cannabis cultivation facility in Huntingdon, Québec is underway and the company has applied for a Health Canada cultivation, processing and sales license.

Upon becoming fully-licensed, ROSE will be the exclusive supplier of High Park products to the Québec market.

Tilray and ROSE LifeScience may also team up on co-branded products or other brands tailored to the Quebec market.

 

Contact Lenore Fedow at lenore@proactiveinvestors.com

Follow her on Twitter: @LenoreMariee

 

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Fri, 14 Dec 2018 10:18:00 -0500 https://www.proactiveinvestors.com/companies/news/211257/tilray-subsidiary-to-expand-its-presence-in-qubec-via-investment-in-cannabis-producer-rose-lifescience-211257.html
<![CDATA[News - Tilray adds Howard Dean and others to newly formed international advisory board ]]> https://www.proactiveinvestors.com/companies/news/211158/tilray-adds-howard-dean-and-others-to-newly-formed-international-advisory-board-211158.html Tilray (NASDAQ:TLRY) has formed an international advisory board to offer guidance to its executive team and board of directors.

The first members of the cannabis company’s new circle of advisers include:

Howard Dean, former US presidential candidate, six-term governor of Vermont, physician and former Democratic National Committee chairman Michael Steele, the former Lieutenant Governor of Maryland Lloyd Axworthy, the chair of the World Refugee Council Jaime Gama, Portugal’s former Minister of Foreign Affairs Alexander John Gosse Downer, Australia’s former Minister for Foreign Affairs Donald McKinnon, New Zealand’s former Minister of Foreign Affairs and Trade Maria Lorena Gutierrez Botero, Colombia’s former ambassador to Germany who also served as the country’s Minister of Commerce, Industry and Tourism James O’Brien, a former senior advisor to the US Secretary of State and vice-chair of Albright Stonebridge Group Lorna Marsden, a former Canadian Senator from Ontario

Tilray, which focuses on medical cannabis research, cultivation and distribution, is headquartered in Nanaimo, British Columbia.

The company's shares traded up 1.8% to hit $86 in US trading before the opening bell on Thursday.

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Thu, 13 Dec 2018 08:30:00 -0500 https://www.proactiveinvestors.com/companies/news/211158/tilray-adds-howard-dean-and-others-to-newly-formed-international-advisory-board-211158.html
<![CDATA[News - Tilray revenue soars 85% in 3Q as company takes aim at cannabis expansion ]]> https://www.proactiveinvestors.com/companies/news/209131/tilray-revenue-soars-85-in-3q-as-company-takes-aim-at-cannabis-expansion-209131.html Tilray Inc (NASDAQ:TLRY) reported on Tuesday that revenue expanded more than 85% in the third quarter as strong sales of its medical marijuana products became available to patients in 12 countries on five continents.

The company reported revenue of $10 million, compared with expectations it would hit $10.1 million. Net loss was $7.5 million, or $0.08 per share, against a net loss in the year-ago period of $1.7 million.

The higher loss was because of the increase in operating expenses related to continued growth, expansion of international teams, and costs related to financing and the initial public offering, Tilray explained.

“The cannabis industry remains very robust and we are pleased with our revenue momentum and strategic achievements in the third quarter,” said CEO Brendan Kennedy in a statement.

Shares of Tilray were down 2.4% in after-hours, having closed 1.7% lower at $111.55 Tuesday in New York.

READ: Shares of Tilray light up after US Attorney General Jeff Sessions resigns

Tilray's CEO expressed optimism about its prospects going forward.

“We are in the early stages of achieving our growth potential and our team continues to strategically execute on disciplined operational initiatives and investments to support Tilray’s long-term, sustainable growth as the pace of legalization continues to accelerate around the world," said Kennedy.

He added: "Going forward, the demand for our products is strong and we remain committed to expanding our leadership in the global medical and adult-use cannabis markets.”

Tilray is one of the four top cannabis companies which are reporting this week. The first two are Aurora Cannabis (NYSE:ACB) and Cronos Group (NASDAQ:CRON). Canopy Growth Corp (NYSE:CGC) will report results Wednesday before the market opens.

READ: Aurora Cannabis sees revenue nearly quadruple in 1Q as recreational sales heat up

Total kilogram equivalents sold by Tilray more than doubled to 1,613 kilograms from 684 kilograms the prior year.

Tilray's average net selling price per gram was $6.21 (C$7.98) compared with $7.53 (C$9.34) for the three months ended September 30, 2017. The reduction in 2018 compared to 2017 was primarily due to an increase in bulk sales as a percentage of total revenue.

Tilray focuses on medical cannabis research, cultivation, processing and distribution.

The Canadian pharmaceutical and cannabis company is headquartered in Nanaimo, British Columbia.

Contact Rene Pastor at rene.pastor@proactiveinvestors.com

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Tue, 13 Nov 2018 16:43:00 -0500 https://www.proactiveinvestors.com/companies/news/209131/tilray-revenue-soars-85-in-3q-as-company-takes-aim-at-cannabis-expansion-209131.html
<![CDATA[News - Buds & Duds: Cannabis stocks on a high after midterm wins and Sessions’ exit ]]> https://www.proactiveinvestors.com/companies/news/208773/buds-duds-cannabis-stocks-on-a-high-after-midterm-wins-and-sessions-exit-208773.html Cannabis stocks were on the rise Wednesday, basking in the glow of US midterm results that brought legalization, recreational and medicinal, to three more states.

Long-time marijuana opponent US Attorney General Jeff Sessions tendered his resignation letter, giving cannabis stocks a reason to celebrate.

Tilray Inc (NASDAQ:TLRY) ) was one of the best-performing cannabis stocks with shares surging more than 30% to US$139.60 by Wednesday’s closing bell.

Cronos Group Inc (NASDAQ:CRON) shares jumped more than 8% to US$9.81.

READ: Shares of Tilray light up after US Attorney General Jeff Sessions resigns

Canopy Growth Corporation (TSE:WEED, NYSE:CGC) shares closed up more than 8% to US$46.10.

The cannabis producer recently closed its US$4 billion investment from Constellation Brands Inc (NYSE:STZ), the maker of Corona beer.

Shares of Aurora Cannabis Inc (NYSE:ACB) were up nearly 9% to US$8.05.

Auxly Cannabis Group Inc (OTCQX:CBWTF) shares were up about 8% to US$0.90 by the end of the trading day.

The company recently closed its acquisition of Inverell S.A., a federally-licensed cannabis operator based in Uruguay.

READ: Michigan, Missouri and Utah vote ‘yes’ on marijuana, but North Dakota’s hopes go up in smoke

Newstrike Brands Ltd (OTCMKTS:NWKRF) shares climbed more than 9% to C$0.59.

Its subsidiary Up Cannabis Inc was named an official supplier to the Ontario Cannabis Store.

Duds

It was a good day for cannabis stocks, but not everyone was riding high.

Shares of CV Sciences Inc (OTCQX:CVSI) sank more than 9% to US$5.57 by the end of the day.

The life science company recently expanded its CBD product sales sequentially by 10% to US$13.6 million in the third quarter from US$12.3 million in sales in the second quarter, but shares fell on suspected profit-taking.

The North American Marijuana Index, which tracks the leading cannabis stocks in the US and Canada, was up about 4.5% by Wednesday’s close.

 

Contact Lenore Fedow at lenore@proactiveinvestors.com

Follow her on Twitter: @LenoreMariee

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Wed, 07 Nov 2018 16:30:00 -0500 https://www.proactiveinvestors.com/companies/news/208773/buds-duds-cannabis-stocks-on-a-high-after-midterm-wins-and-sessions-exit-208773.html
<![CDATA[News - Shares of Tilray light up after US Attorney General Jeff Sessions resigns ]]> https://www.proactiveinvestors.com/companies/news/208772/shares-of-tilray-light-up-after-us-attorney-general-jeff-sessions-resigns-208772.html Tilray Inc (NASDAQ:TLRY) shares surged in the double digits shortly after US Attorney General Jeff Sessions submitted his letter of resignation to President Trump Wednesday.

The stock jumped more than 30% to US$139.18 in afternoon trading in New York.

Aurora Cannabis Inc (NYSE:ACB) shares rose 8% to US$8 while shares of Canopy Growth Corp (TSX:WEED,NYSE:CGC) added nearly 9% to US$46.27.

....We thank Attorney General Jeff Sessions for his service, and wish him well! A permanent replacement will be nominated at a later date.

— Donald J. Trump (@realDonaldTrump) November 7, 2018

Sessions' chief of staff Matthew Whitaker will serve as acting attorney general.

The now-former attorney general has been a vocal opponent of marijuana legalization and was viewed as a major obstacle by cannabis advocates.

The Alabama senator rolled back guidelines put in place by the Obama administration, directing federal agents to prosecute drug criminals to the fullest extent of the law.

The senator was once quoted as saying “I thought those guys [the Ku Klux Klan] were OK until I learned they smoked pot.”

He later clarified that it was a joke, but few were laughing. The senator made the statement during the investigation of the death of a young black man named Michael Donald, murdered by the white supremacy organization in Mobile in 1981.

The midterm elections brought legalized recreational marijuana to Michigan and legalized medical marijuana to Missouri and Utah.

--Adds details, additional stock quotes--

Contact Lenore Fedow at lenore@proactiveinvestors.com

Follow her on Twitter: @LenoreMariee

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Wed, 07 Nov 2018 15:17:00 -0500 https://www.proactiveinvestors.com/companies/news/208772/shares-of-tilray-light-up-after-us-attorney-general-jeff-sessions-resigns-208772.html
<![CDATA[News - Canadian cannabis company Tilray rated a Buy with a price target of $200 by Benchmark analyst ]]> https://www.proactiveinvestors.com/companies/news/207213/canadian-cannabis-company-tilray-rated-a-buy-with-a-price-target-of-200-by-benchmark-analyst-207213.html Canadian cannabis company Tilray Inc (NASDAQ:TLRY) was rated a Buy by equity analysts The Benchmark Company with a price target of $200, as the analyst pointed to its early leadership in the medical cannabis market and the upcoming legalization of recreational cannabis in the country on October 17, a report by Marketwatch said Tuesday.

Analyst Mike Hickey said in a research note to clients that Tilray's strategic alliance with Novartis AG (NYSE:NVS) and supply agreements with Canadian pharmacies gives it a competitive edge in the Canadian cannabis market.

He believes the potential international opportunity in cannabis is "enormous," the report said. Tilray hit a record high of US$300 last month.

The global cannabis market opportunity could top US$200 billion over the long term and Tilray is "well positioned to take a meaningful share of this market," Hickey explained.

READ: Tilray acquires Alef Biotechnology to expand cannabis presence in Latin America

Shares of Tilray were down 4.25% to US$158.60 by midsession on Tuesday.

The Benchmark Company has been involved for more than 30 years in equity research, sales, trading and investment banking. 

Benchmark said it began coverage of the cannabis space on September 25 when it initiated coverage of Canopy Growth Corporation (TSX:WEED) (NYSE:CGC) and set a price target for the company of C$100. 

"Our positive view is based on Canopy's exposure to meaningful demand drivers," Benchmark said in a news post.

READ: Canopy Growth acquires assets of Colorado-based Ebbu to speed up cannabis research programs

It said those drivers are "Canopy's early leadership in the medical cannabis market in Canada, upcoming legalization of recreational cannabis in Canada, and international growth from countries that have legalized cannabis and likely future legalization of cannabis for medical and recreational use in the US and overseas."

The other factor in favor of Canopy Growth are "meaningful investment from Constellation Brands, which accelerates the ongoing build-out of its international production and distribution operations and domestic retail infrastructure to meet rapidly growing global demand, and which enables M&A opportunities and internal development of new brands and products that use cannabis as an active ingredient," Benchmark added.

Shares of Canopy Growth in Canada were down 4.5% to C$70.40 while its shares in New York declined 5.7% to US$53.65.

Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com

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Tue, 16 Oct 2018 12:11:00 -0400 https://www.proactiveinvestors.com/companies/news/207213/canadian-cannabis-company-tilray-rated-a-buy-with-a-price-target-of-200-by-benchmark-analyst-207213.html
<![CDATA[News - Tilray raises $435 million via convertible debt offering ]]> https://www.proactiveinvestors.com/companies/news/206904/tilray-raises-435-million-via-convertible-debt-offering-206904.html Tilray Inc (NASDAQ:TLRY) shares dipped following the close of its convertible debt offering.

The cannabis company announced last week that it would offer $450 million worth of convertible senior notes due in 2023 in a private placement to qualified institutional buyers.

READ: Tilray acquires Alef Biotechnology to expand cannabis presence in Latin America

After expenses, the company raised a total of $435 million. The initial offer was worth $400 million, but was later upsized.

The 5.00% notes will be convertible into cash, shares of its Class 2 common stock, or a combination of the two.

The proceeds will go towards working capital, acquisitions and corporate expenses as well as paying off the $9.1 million existing mortgage on its facility in British Columbia.

The Canadian cannabis company cultivates and distributes medical cannabis to 12 countries, including Canada, Australia, New Zealand and Germany.

Shares of Tilray were down more than 4% to $130.94 in Thursday pre-market trading.

 

Contact Lenore Fedow at lenore@proactiveinvestors.com

Follow her on Twitter: @LenoreMariee

 

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Thu, 11 Oct 2018 08:29:00 -0400 https://www.proactiveinvestors.com/companies/news/206904/tilray-raises-435-million-via-convertible-debt-offering-206904.html
<![CDATA[News - Tilray acquires Alef Biotechnology to expand cannabis presence in Latin America ]]> https://www.proactiveinvestors.com/companies/news/206683/tilray-acquires-alef-biotechnology-to-expand-cannabis-presence-in-latin-america-206683.html Canadian cannabis company Tilray Inc (NASDAQ:TLRY) announced Tuesday it has completed the acquisition of its import and distribution partner Alef Biotechnology SpA to allow Tilray to import, produce and distribute its medical cannabis products in Chile and to create a hub to distribute its products throughout Latin America.

Tilray purchased all the outstanding equity of Alef for approximately C$5 million. The purchase was comprised of approximately C$250,000 in cash paid at closing, and C$4.75 million in Tilray Class 2 common stock. This is subject to a standard working capital adjustment and Alef achieving certain business milestones within a 12 month period after closing.

Brendan Kennedy, president and CEO of Tilray, said the deal allows the company to "expand our global footprint and solidify our presence in Latin America."

Shares of Tilray were up 1.4% to $142.01 in Tuesday's premarket.

READ: Tilray receives approval from US to import a medical cannabis study drug

Tilray had announced a partnership with Alef in February 2017 to import and distribute Tilray products in Chile and Brazil.

Alef is licensed by the Chilean government to commercially produce medical cannabis and is developing a facility to domestically produce and process medical cannabis products. Chilean law permits patients to access medical cannabis products under the supervision of a physician.

Tilray is a global pioneer in the research, cultivation, production and distribution of medical cannabis and cannabinoids currently for tens of thousands of patients in 12 countries in five continents. The company is based in Nanaimo, British Columbia.

Alef Biotechnology is licensed by the Chilean government to commercially produce medical cannabis. The company is focused on medical cannabis research and development for the treatment of various medical conditions. Alef is based in Santiago, Chile.

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Tue, 09 Oct 2018 08:35:00 -0400 https://www.proactiveinvestors.com/companies/news/206683/tilray-acquires-alef-biotechnology-to-expand-cannabis-presence-in-latin-america-206683.html
<![CDATA[News - Tilray and Cronos Group stock fall in holiday-tinged market dealings ]]> https://www.proactiveinvestors.com/companies/news/206600/tilray-and-cronos-group-stock-fall-in-holiday-tinged-market-dealings-206600.html Cannabis stocks Tilray Inc (NASDAQ:TLRY) and Cronos Group Inc (NASDAQ:CRON) fell in on Monday in slow business as holidays in both the US and Canada meant many players stayed pinned to the sidelines.

The US equity market was open but the bond markets were closed for Columbus Day. Canada is shut for Thanksgiving.

Shares of Tilray were off by 4.7% to close at $140 on Monday, having recovered from the session low when it dropped 6.8% to trade at $136.88.

Tilray stock had traded as high as $145.80 for the session, having closed on Friday up 0.92% at $146.91.

Volume in Tilray though was 3.49 million shares, around a third of the daily average volume of 9.22 million shares.

Cronos stock slipped 0.72% to finish at $9.70, having recovered from the day's low of $9.33 when it was 4.5% weaker.

Cronos shares traded up to a high of $9.93 during the session.

The number of shares traded in Cronos was at 6.16 million by the close, just over a third of the average daily volume of 17.41 million shares.

READ: Tilray’s price target ditched by Roth Capital due to ‘unprecedented volatility’

Shares of companies who have been riding the cannabis wave also suffered losses on Monday. 

New Age Beverages Corp (NASDAQ:NBEV), which is gearing up to show its CBD drinks, dropped 12.75% to finish on Monday at $7.39.

The stock slid 18.9% to a session low of $6.87. 

DAVIDsTEA (NASDAQ:DTEA) lost 5.23% to conclude on Monday at $2.72.

At one point, the stock lost 7.6% to trade at the session low of $2.65.

READ: Cronos Group to launch second cannabis product in Canada called 'Spinach'

Tilray has been hit by volatile trading overe the past few weeks, with shares hitting an all-time top of $300 before retreating on profit-taking.

Cronos has been signing partnership deals with several companies such as Ginkgo Bioworks and Aleafia Health last month. 

The sharp swings in cannabis stocks are taking place ahead of next week's legalization of cannabis in Canada.

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Mon, 08 Oct 2018 09:47:00 -0400 https://www.proactiveinvestors.com/companies/news/206600/tilray-and-cronos-group-stock-fall-in-holiday-tinged-market-dealings-206600.html
<![CDATA[News - Tilray upsizes its convertible debt offering, may raise up to $500 million ]]> https://www.proactiveinvestors.com/companies/news/206479/tilray-upsizes-its-convertible-debt-offering-may-raise-up-to-500-million-206479.html Tilray Inc (NASDAQ:TLRY) shares took off following the pricing and upsizing of its convertible debt offering.

The cannabis company announced after the bell Thursday that it would offer $450 million worth of convertible senior notes, up from the initial $400 million offer, due in 2023 in a private placement to qualified institutional buyers.

Shares jumped 4.5% to $152.15 in Friday pre-market trading.

The notes will be convertible into cash, shares of its Class 2 common stock, or a combination of the two.

READ: Waiting to inhale? Cannabis stocks like Tilray are only going to go higher

The expected $435 million in proceeds stemming from the offering will go towards working capital, acquisitions and corporate expenses as well as paying off the $9.1 million existing mortgage on its facility in British Columbia. The first buyers will be given the option to acquire an additional $67.5 million worth of notes, an increase from the initial $60 million valuation.

If the first buyers exercise this option, the capital raise would total $500.5 million.

The Canadian cannabis company cultivates and distributes medical cannabis to 12 countries, including Canada, Australia, New Zealand and Germany.

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Fri, 05 Oct 2018 08:41:00 -0400 https://www.proactiveinvestors.com/companies/news/206479/tilray-upsizes-its-convertible-debt-offering-may-raise-up-to-500-million-206479.html
<![CDATA[News - Tilray shares take a hit after convertible debt offering ]]> https://www.proactiveinvestors.com/companies/news/206395/tilray-shares-take-a-hit-after-convertible-debt-offering-206395.html Tilray Inc (NASDAQ:TLRY) shares took a hit following the cannabis company’s plan to raise capital via a convertible debt offering.

Shares fell more than 3% to $151.99 in Thursday pre-market trading.

READ: Tilray’s price target ditched by Roth Capital due to ‘unprecedented volatility’

The company announced after the bell Wednesday that it would offer $400 million worth of convertible senior notes due in 2023 in a private placement to qualified institutional buyers.

First buyers will be given an option to acquire an additional $60 million worth of notes.

The notes will be convertible into cash, shares of its Class 2 common stock, or a combination of the two.

The proceeds stemming from the offering will go towards working capital, acquisitions and corporate expenses as well as paying off the $9.1 million existing mortgage on its facility in British Columbia.

The Canadian cannabis company cultivates and distributes medical cannabis to 12 countries, including Canada, Australia, New Zealand and Germany.

 

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Thu, 04 Oct 2018 08:21:00 -0400 https://www.proactiveinvestors.com/companies/news/206395/tilray-shares-take-a-hit-after-convertible-debt-offering-206395.html
<![CDATA[News - Tilray’s price target ditched by Roth Capital due to ‘unprecedented volatility’ ]]> https://www.proactiveinvestors.com/companies/news/206206/tilrays-price-target-ditched-by-roth-capital-due-to-unprecedented-volatility-206206.html Canadian cannabis company Tilray Inc (NASDAQ:TLRY) has set the space ablaze with its shares swinging wildly.

The stock’s dramatic movement has Roth Capital analyst Scott Fortune feeling a little dizzy.

READ: Tilray trading halted twice after stock rallies to record at US$300 before profit-taking kicks in

The analyst reiterated a Neutral rating but removed Tilray’s price target due to “unprecedented volatility,” according to a note shared by TheFly.com.

Tilray’s shares were trading around $29.10 on August 15, the day that beer producer Constellation Brands Inc (NYSE:STZ) upped its investment in fellow Canadian cannabis company Canopy Growth Corp (NYSE:CGC, TSX:WEED).

The $4 billion investment sent shockwaves through the entire marijuana market, lifting Tilray’s shares as well.

Tilray shares continued to rise as it inked supply deals left and right, climbing past the $40 mark, the $50 mark and so on.

About a month after the Constellation deal, Tilray’s shares had jumped to $109.05 from $29.10, but the best was yet to come.

READ: Tilray is the latest pot stock to come under attack from short-seller Andrew Left's Citron Research

On September 18, the company received approval to import a cannabinoid study drug for a clinical trial at the University of California San Diego.

The following day, Tilray’s stock was halted a total of five times coupled with a 150-point trading swing that brought its shares to an intra-day high of $300.

As profit-taking kicked in, its shares tumbled back down to $100 a few days later.

Fortune notes that short-sellers are particularly interested in Tilray, but the small number of outstanding shares means fewer to loan out.

Short-seller Andrew Left’s Citron Research changed its once-bullish tune on Tilray, stating that the stock was too expensive.

Citron LOVED $TLRY at $26 but now we are SHORTING stock. Cowen lowered est and still raised tgt $62 only shows "RETAIL INVESTORS GONE MAD" and forgot $TLRY went public at $17 - 6 weeks ago. We would expect an equity raise at these levels. By far most expensive in space.

— Citron Research (@CitronResearch) September 4, 2018

Short interest in Tilray was valued at $385 million last week with the number of shares shorted totaling 3.57 million, according to analytics company S3 Partners.

$TLRY short interest is $385 mm, 3.57 mm shares shorted, 34.63% of float. #Tilray shares shorted decreased by 45k over the last week, in no way a short squeeze as the stock was down 7% & shorts were up $128 million in mark-to-market profits. Borrow costs cheaper @ 50% to 70% fee. pic.twitter.com/e7RTrySMne

— Ihor Dusaniwsky (@ihors3) September 26, 2018

Rumors of mergers and partnerships, most recently spurred by Coca-Cola’s interest in the cannabis space, further fuel the volatility.

Shares of Tilray were down more than 4% to $157.42 in Tuesday Morning trading.

The British Columbia-based cannabis company cultivates and distributes medical cannabis to 12 countries, including Canada, Australia, New Zealand and Germany.

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Tue, 02 Oct 2018 09:43:00 -0400 https://www.proactiveinvestors.com/companies/news/206206/tilrays-price-target-ditched-by-roth-capital-due-to-unprecedented-volatility-206206.html
<![CDATA[News - Tilray shares jump after its subsidiary gets sales license from Health Canada ]]> https://www.proactiveinvestors.com/companies/news/206089/tilray-shares-jump-after-its-subsidiary-gets-sales-license-from-health-canada-206089.html Shares of Tilray Inc (NASDAQ:TLRY) shot up in premarket trade Monday after its wholly-owned  subsidiary High Park Farms Ltd., announced it has received its sales license from Health Canada to sell medical and adult-use cannabis in Canada.

Tilray stock soared 8.3% to $155.50 in before the opening bell.

The Access to Cannabis for Medical Purposes Regulations (ACMPR) license will allow High Park Farms to supply and sell finished cannabis products for the adult-use market in Canada.

“This license marks a milestone for High Park as we aim to solidify our position as a leading provider of adult-use cannabis in Canada,” said Adine Carter, chief marketing officer at High Park Farms. “We look forward to supplying provinces and territories with a variety of world-class cannabis brands and products in anticipation of the launch of the adult-use market on October 17.”

READ: Tilray shorts fell by about 45,000 in the past week, says S3 Partners

High Park received its license to cultivate cannabis under the ACMPR in April 2018. The company has completed several harvests in anticipation of supplying the medical and adult-use cannabis market in Canada.

The High Park Farms facility features 13 acres of greenhouse space on an 100 acre property in Enniskillen, Ontario. Going forward, High Park intends to primarily serve the adult-use market in Canada, while medical cannabis production will continue to take place at the headquarters of its affiliate, Tilray Canada Ltd, in Nanaimo, BC.

Shares of Tilray , an unprofitable Canadian cannabis retailer that is one of the few pot companies listed in the US, have soared more than 740% since their Nasdaq debut this summer.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Mon, 01 Oct 2018 07:30:00 -0400 https://www.proactiveinvestors.com/companies/news/206089/tilray-shares-jump-after-its-subsidiary-gets-sales-license-from-health-canada-206089.html
<![CDATA[News - Why America's cannabis companies are flocking to Canada to woo public investors ]]> https://www.proactiveinvestors.com/companies/news/206022/why-america-s-cannabis-companies-are-flocking-to-canada-to-woo-public-investors-206022.html The migration of US cannabis companies looking to list in Canada is still going strong, as the desire for capital drives America’s marijuana suppliers to seek their fortunes north of the border.

“We are absolutely considering listing on the Canadian Securities Exchange by the Fall of next year,” said Tim McGraw, CEO and founder of Canna-Hub, a real estate holding company for cannabis operations, in an interview with Proactive Investors.

The flirtation with Canada kicked off in earnest in the Spring when the Californian cannabis retailer MedMen (CSE:MMEN), which offers 19 dispensaries in four states, and Green Thumb Industries (CSE:GTII), the Chicago-based manufacturer of cannabis products, both moved to list on the CSE.  

The two companies’ public debuts in Canada have been extraordinarily successful, with MedMen currently boasting a market cap of $3.05 billion while Green Thumb’s hovers at $2.744 billion. (Skeptics say their market caps defy reason as Green Thumb earned just $400,000 in its last quarter on revenue of $13.6 million, while MedMen reported a working capital shortfall of $3.8 million at the close of June and ended March with $86 million in debt against assets of just $52 million, according to a Motley Fool report.)

The CSE is the listing spot of choice

Indeed, the Canadian Securities Exchange is becoming the go-to exchange for US cannabis companies that are being rejected by the New York Stock Exchange and the Nasdaq as the US federal government still bans marijuana, while Canada is set to make all forms of the plant legal on October 17.

The Toronto Stock Exchange and TSX Venture Exchange are also turning a cold shoulder to US cannabis businesses on the view that they are operating in violation of US federal law.

“If you’re going to have a US business in the cannabis industry, the CSE is where you go,” says Christopher Barry, a lawyer with Dorsey & Whitney. “Countless US companies are looking to list on the CSE.”

The push by US cannabis companies to seek funding in Canada via the CSE draws comparisons to the way mining exploration companies turned to Canada to list as a way to raise capital. “It used to be the case that mining exploration projects were mostly funded in Canada and the same thing is happening in the cannabis industry,” says Barry.

Reverse mergers with Canadian shell companies are wildly popular 

There are two ways for cannabis companies to list via the CSE. The most popular and quicker route is currently a reverse merger, where private companies acquire a majority stake in listed Canadian shell companies. The second is via a standard initial public offering.

The rush by cannabis companies to list on the CSE means the exchange is now half-jokingly called the cannabis stock exchange as more than half of the companies that are coming onto the exchange have some connection to the weed sector.

“Clearly, the cannabis sector is leading in terms of funds raised,” said Richard Carleton, CEO of the CSE. “It’s about 60% of the companies that are coming onto the exchange."

Raising investment funds in the US too demanding

Charles Alovisetti, a lawyer at the Denver-based law firm Vicente Sederberg, makes the point that US cannabis companies have had to resort to listing on the CSE after finding it too difficult to raise their own investment funds.

“Back in 2016, everyone in the cannabis sector was trying to raise a fund. But people have realized that’s very difficult. They underestimated how challenging it would be to raise money,” Alovisetti notes. “MedMen raised a fund, but instead of raising a second one, they listed on the CSE.”

Some folks in the industry see a CSE listing as a temporary fix for a problem that will be resolved when US federal restrictions are lifted. “When the restrictions change, we can always uplist to a New York exchange,” says Cann-Hub’s Tim McGraw.

Demand for securing funding via the takeover of Canadian shell companies is now so great that there is a backlog of yet-to-be-realized deals and the managers of the shell companies are pushing for better terms, which is pushing up the prices of reverse takeovers, according to Alovisetti.

“Canadian lawyers are saying there have been so many reverse takeovers, that they are running out of shell companies,” he notes.

Read: Waiting to inhale? Cannabis stocks like Tilray are only going to go higher

Canadian cannabis companies with listings on the Toronto Stock Exchange and the TSX Venture exchange are looking to downlist to the CSE in a bid to widen their businesses to include the US, reports Alovisetti.

While lawyers are receiving scores of calls from American cannabis companies interested in pushing into Canada, the migration is not entirely a two-way venture across the border.

This year, Cronos Group (NASDAQ:CRON) and Canopy Growth (NYSE:CGC), two of the biggest players in Canada’s cannabis sector, moved to uplist their shares to the Nasdaq and the New York Stock Exchange, respectively. And last July, the Canadian cannabis grower Tilray Inc (NASDAQ:TLRY) made history by becoming the country’s first weed company to orchestrate its initial public offering via a US exchange.

But Chris Barry concludes that these three companies, which only operate in international markets where cannabis is legal, are the exception to the rule, however. “There’s a fairly limited number of Canadian companies that have the scale to come to the US,” he says.

In the meantime, the number of US companies focusing their efforts on listing on the CSE to woo investors from across Europe, Asia and the US, who might be scared away by the US Federal ban on marijuana, keeps rising.

“The CSE is everyone’s focus,” concludes Alovisetti.

-- Katie Lewis in Vancouver contributed to this report --

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Fri, 28 Sep 2018 15:13:00 -0400 https://www.proactiveinvestors.com/companies/news/206022/why-america-s-cannabis-companies-are-flocking-to-canada-to-woo-public-investors-206022.html
<![CDATA[Media files - Recent cannabis stock volatility not dampening industry prospects ]]> https://www.proactiveinvestors.com/companies/stocktube/10643/recent-cannabis-stock-volatility-not-dampening-industry-prospects-10643.html Thu, 27 Sep 2018 15:46:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/10643/recent-cannabis-stock-volatility-not-dampening-industry-prospects-10643.html <![CDATA[News - Tilray shorts fell by about 45,000 in the past week, says S3 Partners ]]> https://www.proactiveinvestors.com/companies/news/205791/tilray-shorts-fell-by-about-45000-in-the-past-week-says-s3-partners-205791.html The number of shares that are being shorted in Tilray Inc (NASDAQ:TLRY) has gone down by about 45,000 over the last week, a report by analytics company S3 Partners said on Wednesday.

Ihor Dusaniwsky said in a tweet the short interest in the Canadian cannabis company at this time is worth $385 million and the number of shares shorted stands at 3.57 million, accounting for 34.63% of the bloat.

$TLRY short interest is $385 mm, 3.57 mm shares shorted, 34.63% of float. #Tilray shares shorted decreased by 45k over the last week, in no way a short squeeze as the stock was down 7% & shorts were up $128 million in mark-to-market profits. Borrow costs cheaper @ 50% to 70% fee. pic.twitter.com/e7RTrySMne

— Ihor Dusaniwsky (@ihors3) 26 de setembre de 2018

Dusaniwsky said the fall in the number of shares shorted is “in no way a short squeeze as the stock was down 7% and shorts were up $128 million in mark-to-market profits.”

READ: Waiting to inhale? Cannabis stocks like Tilray are only going to go higher

Borrowing costs are now ranging from 50% to 70% fee, compared with the 500%-700% fee levels at the height of the rally in the stock last week when the share price charged to an all-time peak of $300.

Tilray is a Canadian cannabis company where market bulls and bears are battling it out, with the bulls pointing to the upcoming legalization of cannabis in Canada and short sellers claiming the stock is overvalued.

Shares were trading 4.34% higher at $112.56 late on Wednesday.

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Wed, 26 Sep 2018 14:15:00 -0400 https://www.proactiveinvestors.com/companies/news/205791/tilray-shorts-fell-by-about-45000-in-the-past-week-says-s3-partners-205791.html
<![CDATA[News - Waiting to inhale? Cannabis stocks like Tilray are only going to go higher ]]> https://www.proactiveinvestors.com/companies/news/205682/waiting-to-inhale-cannabis-stocks-like-tilray-are-only-going-to-go-higher-205682.html The cannabis industry has come a long way since the passage of the Compassionate Use Act of 1996, when California became the first state to legalize the distribution of medical marijuana to patients with chronic illnesses.

In the four years following California’s hallmark legislation, Washington, Oregon, Alaska, Maine, and Washington, DC passed legislation legalizing the use of medical marijuana. Today, 30 states have legalized medical marijuana while nine states, the District of Columbia and the Northern Mariana Islands have taken the additional step of legalizing its adult use on a recreational basis.

Now, with 30 states legalizing cannabis in some form, and, according to a Gallup poll released in late October 2017, 64% of Americans supported legalizing marijuana for both recreational and medicinal use, one would expect the federal government to revisit their position on marijuana being listed alongside LSD and Ecstasy as a Schedule 1 drug under the Controlled Substance Act (CSA). 

But, so far, neither President Trump nor Attorney General Jeff Sessions have been willing to discuss the possibility of decriminalizing, rescheduling or de-scheduling cannabis at the federal level.

The key risk few investors are monitoring

If you ask a US-based cannabis investor what’s needed for the industry to evolve and grow into the economic powerhouse many expect it to become, they’ll likely tell you the government needs to reschedule marijuana.

After all, if cannabis were reclassified as Schedule II under the CSA, the government would be admitting that marijuana does have medical benefits.

But there’s a catch.

Schedule II drugs are still affected by US tax code 280E, which disallows businesses — that sell a federally illegal substance — from deducting ordinary business expenses from gross income. Put another way: Moving marijuana to a Schedule II drug won’t help US-based cannabis businesses come out of the regulatory shadows and expand their activities.

A second problem with reclassifying cannabis as a Schedule II drug is the US Food and Drug Administration would become responsible for approving the marketing and packaging for medical marijuana companies. And that means companies would be susceptible to inspections of their manufacturing and processing facilities and expected to undergo costly clinical trials to prove their drugs are safe and effective.

For example, if medical marijuana is being prescribed for a patient with PTSD or glaucoma, the FDA could, and likely would, require a series of exorbitantly expensive and lengthy clinical trials to prove cannabis is doing precisely what the medical marijuana company is advertising it does. And as biotech investors know all too well, most small-cap companies lack the resources to pay for years of clinical trials to back up their drug claims.   

The bottom line is reclassifying cannabis as a Schedule II substance would not be a good thing for the industry. The only way to unleash the full economic potential of the cannabis industry is to de-schedule the drug at the federal level. Unfortunately, taking a schedule I drug and de-scheduling it in one fell swoop seems like a tall order.

Speculative bubble or economic awakening?

In mid-August Constellation Brands (NYSE:STZ) stunned the cannabis industry when it announced it was investing an additional $4 billion into Canopy Growth (NYSE:CGC). But as odd as it may seem, the multi-week, 115% advance in Canopy Growth shares that followed because of the Constellation Brands investment isn’t what’s on the minds of cannabis investors.

While Constellation Brands may be responsible for the initial bout of bullish momentum that’s fueled the recent rise in cannabis stocks, it was last week’s volatility in shares of Canadian marijuana producer Tilray Inc (Nasdaq:TLRY) that set the industry alight and stirred the speculative juices of the investment community. 

After closing a bit above $29 on August 15, 2018, the day Constellation announced its investment in Canopy Growth, Tilray began building momentum and closed above $65 just two weeks later.

But the move to $65 from $29 was only the beginning.

By September 17, Tilray was above $120, and two days after that the stock reached an intraday high of $300. Most observers began using Tilray’s out-of-control price momentum to justify labeling the cannabis industry as a runaway speculative bubble.

And when Tilray fell back to $100 just three days after reaching $300, it seemed safe to assume that the cannabis bubble that began to reflate when Constellation Brands announced their $4 billion investment in Canopy Growth, had officially popped.

But what if there’s another explanation?

I believe that Tilray’s stock rallied the way it did due to several factors.

First and foremost is the fact that US-based traders unwilling to invest in stocks trading on the OTC bulletin board or the Canadian Securities Exchange only have a few choices to pick from to fill their quota for cannabis investments. And with only a handful of cannabis stocks trading on the NYSE and Nasdaq, there’s very little supply to meet an already large and growing demand.

The second factor in Tilray’s upside explosion is that when the stock listed on the Nasdaq, it only made a tiny percentage of its float available to trade. The result is its shares can be driven higher and lower with small order sizes.

A final contributing factor to Tilray’s meteoric rise is that traders began selling the stock short (via common stock and the use of options) and were continually forced to cover their money-losing bets as the stock continued to shoot higher. The short covering merely increased net demand for shares, thereby sending prices even higher.

A silver lining for cannabis investors

When Tilray’s stock collapsed more than 60% over a four-day stretch from September 19 through September 24, the vast majority of the cannabis sector remained unaffected.

To put that into perspective, when the dotcom bubble burst in early 2000, nearly every company that had any connection whatsoever to the internet suffered the same fate. Those companies that managed to avoid bankruptcy still saw their shares decline by as much as 60% to 80%.

But what we saw during the dotcom collapse is not occurring in the cannabis industry.

Stocks like CannaRoyalty Corp (OTCMKTS:CNNRF), KushCo (OTCMKTS:KSHB), Canopy Growth Corp (NYSE:CGC), and Pyxus International (NYSE:PYX) all closed on September 24 at three-month closing highs.

So, while Tilray was caught up in its speculative bubble and eventual collapse, many other cannabis companies appear to be part of an economic awakening that’s still in its early innings.

The bottom line is US-based investors need to pay attention to how the federal government handles a future re-scheduling or de-scheduling of cannabis, as this will have an immediate and massive impact in how investment dollars are allocated. However, the recent hype-filled price action that surrounded shares of Tilray does not appear to have dampened the prospects of this still immature and momentum-driven industry. 

And that, in my view, makes the bull case for investing in the cannabis industry even stronger than it was a few weeks ago when Constellation Brands threw its cards on Canopy Growth's table.

At the time of publication, Byrne had no positions in any of the stocks mentioned.

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Wed, 26 Sep 2018 09:15:00 -0400 https://www.proactiveinvestors.com/companies/news/205682/waiting-to-inhale-cannabis-stocks-like-tilray-are-only-going-to-go-higher-205682.html
<![CDATA[News - Tilray's short-sellers may be forced to surrender as losses increase, says S3 Partners ]]> https://www.proactiveinvestors.com/companies/news/205680/tilray-s-short-sellers-may-be-forced-to-surrender-as-losses-increase-says-s3-partners-205680.html Short-sellers of Tilray Inc (NASDAQ:TLRY) may have to give up on their bet company shares will go lower because losses are rising on an almost daily basis and could well be unsustainable, an analyst at S3 Partners who closely follows the short side of the market said Tuesday.

"Tilray shorts are down another $60 million in mark-to-market losses today (Tuesday), bringing year-to-date losses to $340 million," Ihor Dusaniwsky, managing director of Predictive Analytics in S3 Partners, told Proactive Investors in an email interview.

With those losses in mind, "we may eventually see short-sellers capitulate because their losses are too large to handle," he said.

Based on data compiled by S3, the short interest in Tilray on Tuesday stands at $333.44 million. The number of shares shorted is at 3.35 million, representing 32.51% of the float in the company. 

READ: Tilray stock rises after announcing deal to supply medical cannabis to critically ill Australian children

Dusaniwsky said he is not seeing "a technical reason" for a short squeeze in Tilray at this time.

"There are a small amount of recalls hitting the street, nothing that can’t be covered by the brokers and won’t demand short covering," he said.

Tilray rocketed to a record high of $300 per share, and the stock has become hotly contested between market bulls who believe legalization of cannabis next month in Canada would bolster the stock and those of other cannabis companies.

Then there are those investors who believe the stock is overvalued and the cannabis sector is ripe for sharply lower prices.

Dusaniwsky said stock borrow rates for those going short "have eased substantially to the 50% to 80% level, which is still very expensive but not anywhere near the 500%-700% fee levels we saw earlier" at the height of the Tilray rally.

Shares of Tilray were up 16% to $115.50 Tuesday afternoon. The session peak was at $119.40 with the day's low at $110.30.

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Tue, 25 Sep 2018 14:21:00 -0400 https://www.proactiveinvestors.com/companies/news/205680/tilray-s-short-sellers-may-be-forced-to-surrender-as-losses-increase-says-s3-partners-205680.html
<![CDATA[News - Tilray stock rises after announcing deal to supply medical cannabis to critically ill Australian children ]]> https://www.proactiveinvestors.com/companies/news/205649/tilray-stock-rises-after-announcing-deal-to-supply-medical-cannabis-to-critically-ill-australian-children-205649.html Shares of Canadian cannabis company Tilray Inc (NASDAQ:TLRY) popped on Tuesday after announcing a deal to supply medical cannabis to critically ill children in Australia.

Tilray will distribute its CBD 100 product to three hospitals in the state of Victoria through its wholly owned subsidiary, Tilray Australia New Zealand Pty Ltd. The hospitals are Royal Children's Hospital, Monash Children's Hospital and Austin Health and will be used mainly for children suffering intractable epilepsy.

Tilray stock climbed 18.7% in Tuesday's premarket to $118.13, having settled on Monday down 19.11% at $99.50.

READ: Tilray trading halted twice after stock rallies to record at US$300 before profit-taking kicks in

Tilray CBD 100 is an oral solution of concentrated cannabinoid extract of 100 mg/ml CBD in a 25 ml vial. The products will be supplied under compassionate access and were exported from Canada to Victoria, Australia, in the month of September.

The stock has been a battleground between those who believe the legalization of cannabis in Canada will push the stock higher and short sellers who think Tilray is overvalued.

Tilray is a global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids.

The company serves tens of thousands of patients in 12 countries spanning five continents.

 

 

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Tue, 25 Sep 2018 08:18:00 -0400 https://www.proactiveinvestors.com/companies/news/205649/tilray-stock-rises-after-announcing-deal-to-supply-medical-cannabis-to-critically-ill-australian-children-205649.html
<![CDATA[News - Tilray short-sellers post mark-to-market profits of $29 million after stock drops ]]> https://www.proactiveinvestors.com/companies/news/205568/tilray-short-sellers-post-mark-to-market-profits-of-29-million-after-stock-drops-205568.html Short-sellers in battleground Canadian cannabis stock Tilray Inc (NASDAQ:TLRY) posted US$29 million in mark-to-market profits after its shares fell sharply Monday, an analyst for S3 Partners said.

Shares of Tilray dropped as much as 21.04% to the session low of US$97.12 on Nasdaq before paring its losses to trade at US$105.96 by midsession.

Ihor Dusaniwsky, the managing director for Predictive Analytics in S3, told Proactive Investors that Tilray short interest in Tilray stands at US$400 million, with 3.25 million shares shorted that account for 31.5% of the float in the Canadian cannabis company.

READ: Here's how much lower Tilray shares have to go before shorts can make money on the bet

The rates through which investors could borrow stock to short the company has become more affordable, he said.

"Tilray stock borrow rates have eased substantially, financing rates on existing shorts is 129% fee and rates on new shorts are ranging from 90% fee to 160% fee this morning. There has been a small amount of stock available to borrow, several hundred thousand shares," said Dusaniwsky.

Tilray climbed last week to an all-time high of US$300 per share before pulling back sharply.

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Mon, 24 Sep 2018 12:49:00 -0400 https://www.proactiveinvestors.com/companies/news/205568/tilray-short-sellers-post-mark-to-market-profits-of-29-million-after-stock-drops-205568.html
<![CDATA[News - Here's how much lower Tilray shares have to go before shorts can make money on the bet ]]> https://www.proactiveinvestors.com/companies/news/205465/here-s-how-much-lower-tilray-shares-have-to-go-before-shorts-can-make-money-on-the-bet-205465.html Short-sellers in Canadian cannabis company Tilray Inc (NASDAQ:TLRY) stock may have a long wait before they can make money on their positions, an analyst from S3 Partners said Friday.

Ihor Dusaniwsky, managing director of Predictive Analytics at S3, told Proactive Investors in an interview that around 2.5mln shorts set up their positions "below the US$100 level" and that "no sizable shorts" are coming into the market.

"Seeing that most of the short selling was done when Tilray was below US$50 per share, I would say that, on average, most shorts will not be profitable until Tilray’s stock drops down below US$40 per share," he said in an email to Proactive.

That may take a while since Tilray stock was trading at US$135.41 by midsession on Friday, ranging between US$121.51 and US$144.88.

READ: Cannabis short-sellers may be forced to cover soon as huge losses pile up, says S3 Partners

Dusaniwsky said about 183,000 shares were covered on Thursday and that he is still seeing some shorting as there is "a tiny bit of new stock loan availability (which) hit the street" on Friday. A day, earlier, he tweeted about the short interest in Tilray.

As of this morning $TLRY short interest is $728.42 million, 3.40 million shares short, 33.01% of float. Rates on new shorts were 500% to 800% fee range but by the end of the day rates were down to the 300% to 400% fee level. You can still short #Tilray if you can get a locate. https://t.co/B9WMPOZqbE

— Ihor Dusaniwsky (@ihors3) September 20, 2018

"There will not be any significant increase in shares shorted because there is just no stock loan inventory in size left on the street," the S3 Partners analyst, who closely follows market shorts, said.

READ: Tilray CEO encourages pharma and booze companies to enter the cannabis space

Tilray has been a battleground stock for the past few sessions, with Andrew Left of Citron Research calling its advance "beyond comprehension."

The move in Tilray is beyond comprehension. No one needs a market pundit to explain that. This is just the dynamic of trading low float stocks. Yes we are short and will hold a manageable position until rationality sets in

— Citron Research (@CitronResearch) September 19, 2018

Tilray stock hit an all-time record of US$300 Wednesday before suspected sell-stop orders and profit-taking dragged the stock down.

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Fri, 21 Sep 2018 13:15:00 -0400 https://www.proactiveinvestors.com/companies/news/205465/here-s-how-much-lower-tilray-shares-have-to-go-before-shorts-can-make-money-on-the-bet-205465.html
<![CDATA[News - Tilray lockup expiration of stock in January may tempt early investors to take the money and run ]]> https://www.proactiveinvestors.com/companies/news/205368/tilray-lockup-expiration-of-stock-in-january-may-tempt-early-investors-to-take-the-money-and-run-205368.html The lockup in Tilray Inc's (NASDAQ;TLRY) shares following its initial public offering expires on January 15, 2019, and this will tempt investors to cash in if the sizzling rally does not die down and they opt to dump the stock.

The lock-up period is a predetermined amount of time following the IPO, where large shareholders such as company executives and investors are barred from selling their shares. In many cases, it runs for six months, as is the case with Tilray.

When that period runs out, investors will have to decide if it is time to take money out and book their profits or stick it out.

Analysts said the influx of more shares will give those more stock to use in playing the short side of the market.

READ: Tilray CEO encourages pharma and booze companies to enter the cannabis space

Tilray went public in July at US$17 per share. It hit a record intra-day high of US$300 on Wednesday, September 19, before closing 38% higher at US$214.06. 

The market value of the company will be close to US$19bn if the price of the stock stays close to US$200.

On Thursday, the market cap of Tilray stood at US$16.3bn, higher than Darden Restaurant's US$14.4bn and double that of Alcoa's US$8.07bn. 

The stock was trading on Thursday down 18.3% at US$174.90, having traded between US$158 and US$244.

Privateer's plunder

Exchange figures showed there are 93 million shares outstanding in Tilray, and 75 million of that is owned by Privateer Holdings, an equity fund focused on the cannabis industry where the CEO is Brendan Kennedy, who is likewise the CEO of Tilray.

The other two major figures in Privateer are Christian Groh and Michael Blue. All three are veteran financial professionals.

Another key investor in Tilray is Peter Thiel, an early investor in Facebook who is the co-founder of PayPal.

His Founders Fund became the first institutional investor in the cannabis industry through Privateer's US$75mln Series B financing round in 2014.

READ: Tilray receives approval from US to import a medical cannabis study drug, shares soar almost 30%

Tilray was the first company to legally export medical cannabis products from North America to Europe. It also has a cultivation license from the government of Portugal to produce products for the EU market. Tilray products are currently available at pharmacies in countries throughout the EU.

Tilray was one of the first companies to be licensed to produce medical cannabis in Canada.  The company has a binding letter of intent to be the exclusive collaborator of Sandoz Canada, part of the Novartis Group.

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Thu, 20 Sep 2018 13:22:00 -0400 https://www.proactiveinvestors.com/companies/news/205368/tilray-lockup-expiration-of-stock-in-january-may-tempt-early-investors-to-take-the-money-and-run-205368.html
<![CDATA[News - Some Tilray shorts may have made money during Wednesday's wild trading session, says analyst ]]> https://www.proactiveinvestors.com/companies/news/205344/some-tilray-shorts-may-have-made-money-during-wednesday-s-wild-trading-session-says-analyst-205344.html Short-sellers in Tilray Inc (NASDAQ:TLRY) stock may have made some money during Wednesday's wild trading session in the Canadian cannabis company, an analyst for S3 Partners said.

Tilray stock had gyrated sharply during that session, hitting a record high of US$300, tumbling into the red to US$151.40 about a half-hour before the end of trade, and then shooting up 40% into the close of business to eventually settle at US$214.06, up US$59.08 or by 38.1% for the day.

The stock is trading almost US$14.95 or 7% higher in Thursday's premarket at US$229.01.

Ihor Dusaniwsky, the managing director of predictive analytics for S3 Partners, said in a tweet that short-sellers were down US$208mln in mark-to-market losses on Wednesday because TIlray stock closed 38% higher.

$TLRY shorts down $208 million in mark-to-market losses today, on +38% price move, but at one point #Tilray was at $300/share and shorts were down $505 million - so in actuality they made $300 million after 2:30 pm. BTW, stock borrow market is tapped out - no new shorts in size. https://t.co/nz0sVVjfrg

— Ihor Dusaniwsky (@ihors3) September 19, 2018

"But at one point, Tilray was at US$300/share and shorts were down US$505mln, so in actuality they made US$300mln after 2:30 pm," he said. 

READ: Tilray trading halted twice after stock rallies to record at US$300 before profit-taking kicks in

Tilray stock has been surging after news it would be shipping a medical cannabis study drug to California.

The gyrations appear to have forced some brokerages to raise margin requirements on Tilray stock.

E*Trade raising margin requirement on $TLRY from 60% to 100%

— Tim Collins (@RetroWallSt) September 19, 2018

Short-sellers are betting the stock would go down, but instead it has risen sharply, forcing the shorts to put up more money to maintain their position.

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Thu, 20 Sep 2018 08:49:00 -0400 https://www.proactiveinvestors.com/companies/news/205344/some-tilray-shorts-may-have-made-money-during-wednesday-s-wild-trading-session-says-analyst-205344.html
<![CDATA[News - Tilray trading halted twice after stock rallies to record at US$300 before profit-taking kicks in ]]> https://www.proactiveinvestors.com/companies/news/205263/tilray-trading-halted-twice-after-stock-rallies-to-record-at-us300-before-profit-taking-kicks-in-205263.html Trading in Canadian cannabis company Tilray Inc (NASDAQ:TLRY) was halted twice on Wednesday in a wild session where the stock nearly doubled from the previous close at one point, whipsawed into negative ground later and then spiked in the last 15 minutes of business to finish higher.

Tilray stock soared to trade at a record US$300 per share before suspected sell-stop orders kicked in from players taking money off the table to knock the stock down to US$263.34, still up almost 70% on the day.

At that point, trading in the stock was halted for the first time.

READ: Tilray CEO encourages pharma and booze companies to enter the cannabis space; shares soar

The shares began trading some 10 minutes later and traded 64% up at US$257.73 about an hour before the close of business.

Some 40 miuntes before the close, trading was halted again and Tilray was last seen at US$224.68, up almost 45% for the session.  

When trading resumed again about 10 minutes later, Tilray dove to trade at US$151.40, under the previous closing price of US$154.98. The stock then spiked into the close, jumping over 40% in 15 minutes of trade.

Tilray shares ended on Wednesday at US$214.06, higher by US$59.08 or by 38.12%. The stock was down however by 14% in after hours trade to US$183.63.

READ: Cannabis short-sellers may be forced to cover soon as huge losses pile up, says S3 Partners

The rally in Tilray was inspired by news that the company had received approval to send a medical cannabis study drug to California.

S3 Partners analyst Ihor Dusaniwsky said Tilray is not yet a short squeeze, but it is getting close.

$TLRY not a short squeeze yet - shares shorted hit 3.5 million shares on 8/31 and haven't declined since then. Losses and high borrow costs will squeeze them eventually, but that hasn't happened yet. This is a buyers rally. https://t.co/5YGI4Jpo5P https://t.co/4VDftlwMhG

— Ihor Dusaniwsky (@ihors3) September 19, 2018

The blistering advance forced shorts to fork over larger amounts of funds to maintain their margins and positions in the market, analysts said.

Options activity in Tilray had exploded, with volume nearly quadruple the average daily trading volume of 40,000 contracts, a report by Reuters said.

The Canadian cannabis sector has been a battleground between those touting the market opportunity stemming from the legalization of cannabis in Canada and short sellers who believe the stocks in the market are grossly overvalued.

Tilray is  a cannabis producer based in Canada. 

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Wed, 19 Sep 2018 15:08:00 -0400 https://www.proactiveinvestors.com/companies/news/205263/tilray-trading-halted-twice-after-stock-rallies-to-record-at-us300-before-profit-taking-kicks-in-205263.html
<![CDATA[News - Cannabis short-sellers may be forced to cover soon as huge losses pile up, says S3 Partners ]]> https://www.proactiveinvestors.com/companies/news/205256/cannabis-short-sellers-may-be-forced-to-cover-soon-as-huge-losses-pile-up-says-s3-partners-205256.html Short-sellers of Canadian cannabis companies such as Tilray Inc (NASDAQ:TLRY) are losing millions of dollars daily and may be forced to cut their losses by covering their positions soon, according to a report by S3 Partners published Wednesday.

"This is such a quick and painful loss," Ihor Dusaniwsky, the managing director of predictive analytics in S3 Partners, told Proactive Investors in an interview. "These are the big losses today in the cannabis side."

S3, which specializes in using analytics to gauge investment processes, risk management, counterparty relationships and investor relations, monitors short-sellers in financial markets.

"Short sellers are positioning themselves for a pullback in what they believe is an overheated sector, but holding on to their positions is becoming an expensive proposition," he said in a report issued on Monday.

"The average cost to borrow stocks in the Cannabis sector is 21.8% fee and short sellers are paying over US$2.4mln/day in stock borrow financing costs. Shorting a sector ETF is usually a cheaper alternative, but the two main cannabis ETFs are only slightly less expensive at an average of 20.8% fee."

READ: Tilray CEO encourages pharma and booze companies to enter the cannabis space

Dusaniwsky said the mark-to-market losses of all of the companies or investors shorting the Canadian cannabis sector will hit US$275mln on this day alone because their prices are shooting higher. The cost of paying fees just to maintain a position could reach US$3.4mln daily.

For Tilray alone, Dusaniwsky said short-sellers are already down in mark-to-market losses by US$272mln and the year-to-date tab now stands at US$435mln. "Virtually no short-selling today" in Tilray, he said.

$TLRY short interest $536 million, 3.46 mm shares shorted, 33.56% of float. #Tilray stock up 50%, shorts down $272 million in mark-to-market losses, down -$435mm YTD. Virtually no short selling today as locates are scarce. New borrows @ 600%-800% fee, existing shorts @ 225% fee pic.twitter.com/6hY84ATA7N

— Ihor Dusaniwsky (@ihors3) September 19, 2018

He warned a squeeze may be seen in Tilray, Green Organic Dutchman and the Cronos Group where stock borrows are going at 50% fee levels.

"If stock loan recalls and mark-to-market losses continue to accumulate in Tilray, Green Organic and Cronos, we could be on the verge of squeezes in these three stocks," Dusaniwsky said.

Such huge losses make it understandable why short-sellers such as Citron Research are hammering the short argument against Tilray, among others.

In response to the many questions. $TLRY 3x more expensive than leader Canopy despite no bev deal, behind in funding, and lower capacity. Here is the chart you requested pic.twitter.com/54uLaTQWvY

— Citron Research (@CitronResearch) September 4, 2018

Citron LOVED $TLRY at $26 but now we are SHORTING stock. Cowen lowered est and still raised tgt $62 only shows "RETAIL INVESTORS GONE MAD" and forgot $TLRY went public at $17 - 6 weeks ago. We would expect an equity raise at these levels. By far most expensive in space.

— Citron Research (@CitronResearch) September 4, 2018

Namaste $N Canada. Some cannabis stocks are overvalued, and some are total jokes. This is a joke Drop it like its hot' after the pledge party prohibits listing in US, downside: 80%. That .50

— Citron Research (@CitronResearch) September 14, 2018

The shorts are suffering in particular after Tilray received permission from the US to supply medical cannabis to a study in California, sparking a furious rally in the stock on Wednesday to trade at a 52-week high of US$248, up  60% on the day. The stock had already closed on Tuesday up by 28.95% to US$154.98.

The surge in Tilray has lifted other cannabis stocks as well. Aurora Cannabis Inc shares in Canada jumped 9.7% to trade at C$12.10.

The bad trip for cannabis shorts continues with $TLRY U.S. trade pact. Short interest is $417 million, stock borrow rates on existing shorts are 211% fee, new borrows as high as 700% fee. $TLRY Shorts are down $57 million in mark-to-market losses. Other pot shorts are down $50mm. pic.twitter.com/q3TvnqwRoT

— Ihor Dusaniwsky (@ihors3) September 18, 2018

Dusaniwsky believes that at some point, "there will be some covering on the short side" if prices of Canadian cannabis companies keep marching higher, especially since some shorts do not have "the deep pockets" to sustain their bet against those companies.

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Wed, 19 Sep 2018 12:53:00 -0400 https://www.proactiveinvestors.com/companies/news/205256/cannabis-short-sellers-may-be-forced-to-cover-soon-as-huge-losses-pile-up-says-s3-partners-205256.html
<![CDATA[News - Short-seller Andrew Left’s Citron Research says surge in cannabis company Tilray is 'beyond comprehension' ]]> https://www.proactiveinvestors.com/companies/news/205237/short-seller-andrew-lefts-citron-research-says-surge-in-cannabis-company-tilray-is-beyond-comprehension--205237.html Tilray Inc (NASDAQ:TLRY) set the cannabis space ablaze following an interview with CNBC’s Jim Cramer, sending its shares surging double digits. But short-seller Andrew Left’s Citron Research had some harsh words to share about the Canadian cannabis company.

The move in Tilray is beyond comprehension. No one needs a market pundit to explain that. This is just the dynamic of trading low float stocks. Yes we are short and will hold a manageable position until rationality sets in

— Citron Research (@CitronResearch) September 19, 2018

Citron Research was previously bullish on Tilray following Constellation Brands Inc‘s (NYSE:STZ) additional US$4bn investment in its rival Canopy Growth Inc (NYSE:CGC, TSX:WEED).

Citron LOVED $TLRY at $26 but now we are SHORTING stock. Cowen lowered est and still raised tgt $62 only shows "RETAIL INVESTORS GONE MAD" and forgot $TLRY went public at $17 - 6 weeks ago. We would expect an equity raise at these levels. By far most expensive in space.

— Citron Research (@CitronResearch) September 4, 2018 READ: Tilray CEO encourages pharmaceutical and alcohol companies to enter the cannabis space

Left had said it could be the next marijuana company to get a “white knight at a premium to market.”

The short-seller has cast doubt on other cannabis stocks via Twitter Inc (NYSE:TWTR) as well, including Cronos Group Inc (NASDAQ:CRON, CSE:CRON) and Namaste Technologies Inc (CVE:N, OTCQB:NXTTF).

Shares of Tilray soared nearly 50% to US$232 in Wednesday pre-market trading.

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Wed, 19 Sep 2018 09:14:00 -0400 https://www.proactiveinvestors.com/companies/news/205237/short-seller-andrew-lefts-citron-research-says-surge-in-cannabis-company-tilray-is-beyond-comprehension--205237.html
<![CDATA[News - Tilray CEO encourages pharma and booze companies to enter the cannabis space; shares soar ]]> https://www.proactiveinvestors.com/companies/news/205233/tilray-ceo-encourages-pharma-and-booze-companies-to-enter-the-cannabis-space-shares-soar-205233.html Cannabis companies have been in the spotlight ahead of the pending legalization in Canada.

Tilray Inc (NASDAQ:TLRY) CEO Brendan Kennedy sat down with CNBC’s Jim Cramer Tuesday night to frame the big picture beyond Canada and discuss which companies need to carve out a piece of the space.

READ: Tilray receives approval from US to import a medical cannabis study drug, shares soar almost 30%

Shares of Tilray surged more than 50% to US$234 in Wednesday pre-market trading following the interview.

Kennedy said pharmaceutical companies especially need to consider partnering with cannabis companies.

 "They have to hedge this," said Kennedy in his “Mad Money” interview.

"Cannabis is a substitute for prescription painkillers, prescription opioids, and so if you're an investor in a pharmaceutical company or you're a pharmaceutical company, you have to hedge the offset from cannabis substitution."

READ: Constellation Brands ups stake in Canopy Growth, invests an additional US$4bn

Tilray teamed up with Sandoz Canada Inc, a division of Swiss drug manufacturer Novartis AG (NYSE:NVS), giving the cannabis company a helping hand developing products and getting them into Canadian pharmacies and hospitals.

Constellation Brands Inc (NYSE:STZ), the maker of Corona beer, recently invested an additional US$4bn in another Canadian cannabis company, Canopy Growth Corp (NYSE:CGC, TSX:WEED).

Kennedy encouraged other alcohol manufacturers to follow suit, calling it a “great hedge” and a “global opportunity.” He valued the cannabis industry at around US$150bn.

Legalization is headed to Canada in October, but Kennedy is more interested in what comes next.

"With Canada, we're about to see 100 percent growth: one country, Uruguay, to two countries, Canada. What intrigues me is country three, four, five and six,” said Kennedy.

"It's not about Canada, it's about all the countries that follow,” he added.

Kennedy predicted that a third country will arise within 12 months of October.

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Wed, 19 Sep 2018 08:39:00 -0400 https://www.proactiveinvestors.com/companies/news/205233/tilray-ceo-encourages-pharma-and-booze-companies-to-enter-the-cannabis-space-shares-soar-205233.html
<![CDATA[News - CryptoCann™ Report: People’s Bank of China issues ICO warning; Quebec bans merchandise decorated with cannabis leaf ]]> https://www.proactiveinvestors.com/companies/news/205158/cryptocann-report-peoples-bank-of-china-issues-ico-warning-quebec-bans-merchandise-decorated-with-cannabis-leaf-205158.html Regulatory bodies worldwide have been keeping an eye on cryptocurrency, surveying the space as they attempt to regulate trading and mining operations.

The People’s Bank of China issued a notice to investors to be wary of the risks associated with initial coin offerings and cryptocurrency trading, according to a Coin Telegraph report.

The report from China’s central bank noted that ICOs are “suspected of illegally selling tokens, illegally issuing securities, illegal criminal activities, financial fraud, pyramid schemes and other illegal and criminal activities.”

The bank’s Office for Special Remediation of Internet Financial Risks has reportedly blocked 124 IP addresses suspected of facilitating domestic crypto trading.

READ: Zichain launches cryptocurrency trading platform to access all exchanges

While the US hasn’t been as restrictive in regard to trading crypto, regulatory bodies aren’t prepared to throw the rules out the window for digital assets.

Wesley Bricker, the chief accountant for the US Securities and Exchange Commission, reminded companies that they still need to follow standard accounting procedures for blockchain and digital assets, as per a Coin Desk report.

"Distributed ledger technology and digital assets, despite their exciting possibilities, do not alter this fundamental responsibility," said Bricker during his remarks at the American Institute of Certified Public Accountants’ National Conference on Banks & Saving Institutions in Washington, D.C.

Bricker stressed to the corporate accounts in attendance the importance of staying in-the-know about up-and-coming technologies.

The Cann Report

Cannabis culture magazine High Times has a cult following, but that hasn’t translated into money as it fundraises for its upcoming initial public offering.

High Times Holding has raised a total of US$5mln, substantially less than its goal of US$50mln and US$17.2mln short of what it needs to be listed on the Nasdaq, as per a Marijuana Business Daily report.

High Times is offering a total of 11 million shares of Class A common stock priced at US$11 each. Its deadline has been extended to October 31.

The company has said that if it doesn’t raise enough to list on the Nasdaq, it will list on US OTC markets or on Canadian exchanges.

READ: Tilray receives approval from US to import a medical cannabis study drug for a clinical trial in California

Legalization will come to Canada in October, but there’s one leaf you won’t be seeing if you visit Quebec this fall.

The provincial government has expanded its cannabis packaging regulations, banning the sale of anything decorated with a cannabis leaf, as per a Civilized report.

Retailers found selling merchandise with a cannabis leaf on it face fines ranging from C$5,000 to C$62,500.

The Quebec Health Ministry said it has 31 inspectors prepared to ticket businesses not in compliance.

In other cannabis news, Canadian cannabis company Tilray Inc (NASDAQ:TLRY) is expected to be on CNBC’s Mad Money with Jim Cramer on Monday night.

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Tue, 18 Sep 2018 11:28:00 -0400 https://www.proactiveinvestors.com/companies/news/205158/cryptocann-report-peoples-bank-of-china-issues-ico-warning-quebec-bans-merchandise-decorated-with-cannabis-leaf-205158.html
<![CDATA[News - Tilray receives approval from US to import a medical cannabis study drug, shares soar almost 30% ]]> https://www.proactiveinvestors.com/companies/news/205129/tilray-receives-approval-from-us-to-import-a-medical-cannabis-study-drug-shares-soar-almost-30-205129.html Shares in Tilray Inc (NASDAQ:TLRY) shot up Tuesday after it announced that the US Drug Enforcement Administration (DEA) had approved the import of a Canadian cannabinoid study drug made by the company for a clinical trial at the University of California San Diego.  

Shares of the Canadian cannabis company shot up 28.95% to close at US$154.98 on Tuesday, having hit a 52-week high of US$155.10.

The stock then extended the rally by rising 5.81% to trade at US$163.99 in after-hours trade on Tuesday.

The university’s Center for Medicinal Cannabis Research (CMCR) is examining the pharmaceutical-grade medical cannabis product’s safety, tolerability and efficacy for essential tremor, a nervous system or neurological disorder that causes involuntary and rhythmic shaking.

Tilray is providing a cannabinoid formulation for the trial in capsule form, which will allow researchers to test an investigational drug product containing two active ingredients extracted from the cannabis plant, cannabidiol (CBD) and tetrahydrocannabinol (THC).

READ: Beverage giant Coca-Cola interested in cannabis drinks, sending cannabis stocks higher

Dr Fatta Nahab, a board-certified neurologist and director of the Functional Imaging of Neurodegenerative Disorders Lab at the UC San Diego Health’s Movement Disorder Center, will serve as the principal investigator for the study. The trial is expected to begin in early 2019 with financial support from Tilray and the International Essential Tremor Foundation.

“Tilray is proud to support this crucial research,” said Dr Catherine Jacobson, director of Clinical Research, at Tilray. “If this study can identify cannabinoids as a potential treatment for patients suffering from essential tremor, we can conduct further research and potentially provide alternative effective methods of relief for the high numbers of patients with essential tremor.”

Essential Tremor has extremely high prevalence rates; 0.4% of the general population suffers from it, and that figure rises to 4.6% to 6.3% among those 65 and older. Many patients do not experience relief with the current drugs on the market or find the side-effects of these drugs to be unbearable.

“It’s exciting to advance our work in this area by conducting a first-of-its kind trial of purified medicinal cannabis for a common neurological disorder like essential tremor,” says Dr Nahab. “Until now patients have been on their own to figure out the efficacy, safety, and dosing of cannabinoids. This trial should help answer many of these critical questions.”

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Tue, 18 Sep 2018 07:40:00 -0400 https://www.proactiveinvestors.com/companies/news/205129/tilray-receives-approval-from-us-to-import-a-medical-cannabis-study-drug-shares-soar-almost-30-205129.html
<![CDATA[News - Short-sellers are becoming more selective about betting against cannabis stocks, says IHS Markit report ]]> https://www.proactiveinvestors.com/companies/news/205036/short-sellers-are-becoming-more-selective-about-betting-against-cannabis-stocks-says-ihs-markit-report-205036.html Short-sellers are becoming more selective and have been reducing their exposure to certain cannabis stocks as their efforts to bet against the sector falter, according to a new report from research house IHSMarkit.

Despite a minor pullback last week, the cannabis sector has been on fire lately, showing an average share price appreciation of nearly 30% since the start of August for US and Canadian stocks with exposure to the sector.

Indeed, cannabis stocks currently boast a market capitalization of US$48bn, after jumping by a staggering US$20bn since August, according to the Markit report.

While the rally is good news for investors, it has proved to be a tough run for short-sellers, who pared back their exposure to the space — from US$2.15bn immediately following the vote to legalize marijuana in Canada last June to US$1.5bn at the end of July.

Read: Namaste Technologies CEO Sean Dollinger fires right back after Andrew Left calls the stock a 'joke'

It must be noted, however, that short-sellers aren’t entirely “fleeing the space,” despite the massive cannabis sector rally and there have been selective additions made to short positions, while others are reduced.

Indeed, the rally drove the short balance to a new record on September 13 of US$2.2bn.

Aurora Cannabis (OTCMKTS:ACBFF), Cronos Group (NASDAQ:CRON), Innovative Industrial Properties Inc (NYSE:IIPR), Hexo (TSE:HEXO) and CannTrust (OTCMKTS:CNTTF) are on the list where short-sellers are ramping up positions.

Canopy Growth (NYSE:CGC), Aphria Inc (OTCMKTS:APHQF), Scotts Miracle-Gro (NYSE:SMG), Tilray (NASDAQ:TLRY) and Insys Therapeutics (NASDAQ:INSY), meanwhile, are seeing diminishing interest from the shorts.

Marking one of the biggest short positions, there are currently 56 million shares short, worth US$393mln, in Aurora Cannabis, which closed at US$6.52 on Friday. There are also 21 million shares short in Cronos Group (NASDAQ:CRON) (TSE:CRON), worth US$95mln, which finished Friday at US$10.38 in New York.

But more and more short-sellers are steering clear of other stocks such as Canopy Growth (NYSE:CGC) (TSE:WEED), which has seen its shares nearly double to hover at US$47.19 since alcoholic-drinks maker Constellation Brands (NYSE:STZ) revealed plans last month to plow US$5bn into the company.

Since the start of August, there has been a 7.6-million share decline in Canopy short positions, according to Markit’s analysis.

“Short sellers have become, understandably, reticent remaining short the industry leader,” wrote Markit analysts.

Another hot pot stock, Tilray Inc (NASDAQ:TLRY), which has seen its share price soar from its US$17 at its public debut last July to over US$105, has also not been a strong play for short-sellers. After taking a long position in the stock on August 15, 2018, with a price target of US$45, the short-selling research house Citron Research switched sides on September 5 and took a short position after the share price hit US$77.  

Read: Tilray shares climb past US$100 for the first time as short-seller Andrew Left dubs the rally more ridiculous than bitcoin mania

But the call hasn’t played well for Citron, as Tilray shares closed on Friday at US$109.05. “That call hasn’t worked quite as well, with the share price up a further 50% since then,” according to Markit.

The current short position in Tilray is just 2 million shares, worth roughly US$200mln. A big part of the problem for short sellers has been a lack of lendable Tilray shares to borrow and short. Short plays on this stock looks too expensive as retail brokers and other holders can charge triple-digit borrow fees.

“It’s been a bonanza for shareholders who have seen massive share price appreciation along with borrow fees which are high enough to be meaningful over short holding periods,” conclude Markit analysts.

“There is little evidence that short covering has played a role in the upward trajectory of the shares, with the current short position being trivial compared with over 100mln shares traded since the start of August,” they added.

 

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Mon, 17 Sep 2018 09:05:00 -0400 https://www.proactiveinvestors.com/companies/news/205036/short-sellers-are-becoming-more-selective-about-betting-against-cannabis-stocks-says-ihs-markit-report-205036.html
<![CDATA[News - Tilray to export medical cannabis flower to Germany ]]> https://www.proactiveinvestors.com/companies/news/204841/tilray-to-export-medical-cannabis-flower-to-germany-204841.html The Canadian cannabis group Tilray (NASDAQ:TLRY) is set to export medical cannabis flower to Germany after receiving the required regulatory permits.

The move follows Tilray’s push into exporting medical cannabis oil to Germany for distribution out of pharmacies there, which began late last year.

The export of Tilray’s whole flower medical cannabis products will make Tilray the first medical cannabis company to offer both full-spectrum cannabis oils and whole flower products in the German medical market.

“We are proud to be able to offer access to differentiated high-quality pharmaceutical-grade medical cannabis products to patients in need,” said CEO Brendan Kennedy in a statement.

Read: Tilray shares climb past US$100 for the first time as short-seller Andrew Left dubs the rally more ridiculous than bitcoin mania

Tilray has been on the acquisition trail as it looks to sign partnerships and enter into distribution agreements ahead of the legalization of marijuana in Canada on October 17.

In one of its latest ventures, this month Tilray reached a supply deal with The Supreme Cannabis Company Inc’s (CVE:FIRE, OTCQX:SPRWF) subsidiary 7Acres. Under the deal’s terms, 7Acres will provide dried cannabis to Tilray for distribution to its network of medical cannabis patients.

Read: Tilray imports medical cannabis to pediatric patient in the United Kingdom

Tilray Canada also recently signed a supply agreement with the Prince Edward Island Cannabis Management Corporation for the sale of cannabis in the province. The company will supply the province’s four cannabis stores and online channels following legalization in October.

Distinguishing itself from competitors, Tilray has a partnership to develop medical products with Sandoz Canada, a division of Novartis AG(NYSE:NVS).

After climbing past $100 for the first time this week, shares in Tilray traded 8.4% higher in Thursday’s pre-market session to hit US$113.73.

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Thu, 13 Sep 2018 07:58:00 -0400 https://www.proactiveinvestors.com/companies/news/204841/tilray-to-export-medical-cannabis-flower-to-germany-204841.html
<![CDATA[News - Tilray shares climb past US$100 for the first time as short-seller Andrew Left dubs the rally more ridiculous than bitcoin mania ]]> https://www.proactiveinvestors.com/companies/news/204765/tilray-shares-climb-past-us100-for-the-first-time-as-short-seller-andrew-left-dubs-the-rally-more-ridiculous-than-bitcoin-mania-204765.html Tilray Inc's (NASDAQ:TLRY) stock has hit bubble levels and created a “ridiculous valuation discrepancy” for the Canadian marijuana grower, argues short-seller Andrew Left of Citron Research.

In his latest note to investors, Left claims Tilray, which went public in July at US$17 and went past US$100 Wednesday, is part of an unjustified frenzy to buy marijuana stocks, which is “even more ridiculous” than bitcoin mania.

“The bubble has created this ridiculous valuation discrepancy for Tilray,” Left writes. “We know how this will end and will gladly short more if the stock goes higher … our funding is secured because this is what we know."

Despite Left’s note, Tilray shares still finished 9.6% higher to hit US$104.95 on Wednesday.

Read: Tilray is the latest pot stock to come under attack from short-seller Andrew Left's Citron Research

The rush to buy into Canadian companies like Tilray and Cronos Group (NASDAQ:CRON), which are listed in the US, also flies in the face of reason, according to Left, as US-listed companies cannot have any cannabis operations in the US without forfeiting their listings. In contrast, Canadian-listed stocks can have US cannabis operations.

“Today, the California market is over 5 times larger than all of Canada,” writes Left. “Despite obvious logic, we’ve seen US retail investors pile into the US-listed marijuana stocks.”

Tilray must raise more money to fund its aggressive expansion plans and that would come in the form of a secondary offering, the Citron note argues.

Higher competition in the US

The recent valuation surge of US-listed cannabis stocks is also attracting Canadian-listed cannabis companies to the US. And Citron predicts that budding powerhouses such as Aphria Inc, Aurora Cannabis Inc, CannTrust Holdings Inc, OrganiGram Holdings Inc, HEXO Corp and The Green Organic Dutchman Holdings Ltd could all list in the US soon, as none of these companies have US cannabis assets.

The expected migration from across the border of Canadian companies opting for US listings does not play well for Tilray, Citron argues.

“Soon the stock market will have more options as the deepest cannabis IPO pipeline in history will detract capital from Tilray and traders will have new toys to play with,” Citron notes.

Left and his team are similarly pessimistic about the outlook for the wider cannabis sector as marijuana becomes cheaper and regulations put limits on the market.

The price of cannabis stocks have reached levels equivalent to bitcoin mania – but the phenomenon is “even more ridiculous than bitcoin,” the note says.

“Whereas people liked Bitcoin because it was a blue sky, unregulated, difficult to mine, and had no real competition in cryptocurrency, cannabis is highly regulated, can be farmed worldwide for cheap, and has many different players involved,” the note concludes.

-- updated with new share price movement -- 

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Wed, 12 Sep 2018 11:58:00 -0400 https://www.proactiveinvestors.com/companies/news/204765/tilray-shares-climb-past-us100-for-the-first-time-as-short-seller-andrew-left-dubs-the-rally-more-ridiculous-than-bitcoin-mania-204765.html
<![CDATA[News - CryptoCann™ Report: ICO funding reaches lowest level in 16 months; Jimmy Buffett licenses Coral Reefer brand ]]> https://www.proactiveinvestors.com/companies/news/204665/cryptocann-report-ico-funding-reaches-lowest-level-in-16-months-jimmy-buffett-licenses-coral-reefer-brand-204665.html A surge of fraudulent initial coin offerings prompted a slew of cryptocurrency investigations from the US Federal Bureau of Investigations in recent months. Now, the ICO boom may be coming to an end.

Funding for ICOs reached its lowest level in 16 months with start-ups raising US$326mln in August, according to a Bloomberg report. The first three months of the year saw an average of around US$3bn raised.

Analysts are placing the blame on coin offerings for driving Ether’s sell-off, according to the report. ICOs that utilized the Ethereum blockchain may now be cashing out, fearing that the cryptocurrency bear market may linger.

WATCH: Lead Best building out investment and distribution system tools to eliminate token fraud

In lighter news, mayonnaise-alternative brand Miracle Whip poked fun at an ICO of its own.

The Kraft-Heinz Company (NASDAQ:KHC) brand announced an “initial condiment offering” via Twitter for its Whipcoin.

Thinking about an Initial Condiment Offering...

What do our new #crypto friends think about #WhipCoin ???? pic.twitter.com/plNV8t9sCt

— Miracle Whip (@MiracleWhip) September 6, 2018

Twitter’s crypto community joined in on the joke, suggesting the best methods to launch the coin.

Oscar Mayer, also a Kraft-Heinz brand, released its own “Bacoin” tokens that could be traded in for packs of its bacon.

The Cann Report

The use of medical cannabis was prohibited in the UK until July when Home Secretary Sajid Javid announced that doctors would be able to prescribe cannabis-derived medicines to patients with a medical need for it.

Canadian cannabis company Tilray Inc (NASDAQ:TLRY) successfully imported its medical cannabis product to a pediatric patient in the United Kingdom.

The patient is said to have a rare form of epilepsy and received an oral solution containing 100 mg/ml cannabidiol (CBD) and 2mg/ml tetrahydrocannabinol (THC).

Shares of Tilray jumped nearly 10% to US$92.70 in Tuesday afternoon trading.

READ: Three hidden gems stashed away in a cannabis market that just keeps rolling higher

Singer-songwriter Jimmy Buffett plans to license his “Coral Reefer” brand, named after his band, to privately-held medical marijuana company Surterra Holdings, according to a Fortune report.

The board of the Georgia-based company is chaired by William Wrigley, the former CEO of the candy brand behind the namesake chewing gum.

While the “Margaritaville” singer will hold no stake in the company, he will receive royalties.

Surterra will offer Coral Reefer-branded vape pens, edibles, lotions and gel caps.

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Tue, 11 Sep 2018 12:47:00 -0400 https://www.proactiveinvestors.com/companies/news/204665/cryptocann-report-ico-funding-reaches-lowest-level-in-16-months-jimmy-buffett-licenses-coral-reefer-brand-204665.html
<![CDATA[Media files - CryptoCann™ Report: ICO funding reaches lowest level in 16 months; Jimmy Buffett licenses Coral Reefer brand ]]> https://www.proactiveinvestors.com/companies/stocktube/10442/cryptocann-report-ico-funding-reaches-lowest-level-in-16-months-jimmy-buffett-licenses-coral-reefer-brand-10442.html Tue, 11 Sep 2018 11:31:00 -0400 https://www.proactiveinvestors.com/companies/stocktube/10442/cryptocann-report-ico-funding-reaches-lowest-level-in-16-months-jimmy-buffett-licenses-coral-reefer-brand-10442.html <![CDATA[News - Tilray imports medical cannabis to pediatric patient in the United Kingdom ]]> https://www.proactiveinvestors.com/companies/news/204649/tilray-imports-medical-cannabis-to-pediatric-patient-in-the-united-kingdom-204649.html Tilray Inc (NASDAQ:TLRY) shares jumped in early trading after the Canadian cannabis company successfully imported its medical cannabis product to a pediatric patient in the United Kingdom.

The patient is said to have a rare form of epilepsy and received an oral solution containing 100 mg/ml cannabidiol (CBD) and 2mg/ml tetrahydrocannabinol (THC).

READ: Tilray is the latest pot stock to come under attack from short-seller Andrew Left's Citron Research

The same CBD to THC ratio was used in a recent trial conducted with the Hospital for Sick Children, also known as SickKids, in Toronto.

“We observed promising clinically beneficial effects including a reduction in seizure frequency and improvements in certain aspects of adaptive functioning and quality of life measures,” said Blathnaid McCoy, Staff Neurologist at SickKids where the clinical trial took place, in a press release.

The use of medical cannabis was prohibited in the UK until July when Home Secretary Sajid Javid announced that doctors would be able to prescribe cannabis-derived medicines to patients with a medical need for it.

“Recent cases involving sick children made it clear to me that our position on cannabis-related medicinal products was not satisfactory,” said Javid.

Shares of Tilray jumped nearly 6% to US$89.26 in Tuesday pre-market trading.

 

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Tue, 11 Sep 2018 09:22:00 -0400 https://www.proactiveinvestors.com/companies/news/204649/tilray-imports-medical-cannabis-to-pediatric-patient-in-the-united-kingdom-204649.html
<![CDATA[News - The Supreme Cannabis Company inks dried cannabis supply deal with Tilray ]]> https://www.proactiveinvestors.com/companies/news/204548/the-supreme-cannabis-company-inks-dried-cannabis-supply-deal-with-tilray-204548.html Canadian cannabis companies are shifting into high gear ahead of the impending legalization this fall.

The Supreme Cannabis Company Inc’s (CVE:FIRE, OTCQX:SPRWF) subsidiary 7ACRES inked a supply deal with Tilray Inc (NASDAQ:TLRY) to provide dried cannabis to its subsidiary Tilray Canada Ltd.

READ: Tilray is the latest pot stock to come under attack from short-seller Andrew Left's Citron Research

The dried cannabis supplied by 7ACRES will be distributed to Tilray’s network of medical cannabis patients.

Shares of Tilray jumped almost 8.5% to close at US$84.50 on Monday. Shares of Supreme Cannabis were up 11.61% to settle at US$1.73.

 "As one of Canada's first licensed producers, Tilray has been an industry leader in patient services and quality assurance. We believe this agreement demonstrates the quality of the 7ACRES dried flower, and the infrastructure, management and systems that support our brand positioning," said Supreme Cannabis CEO John Fowler in the company’s press release.

Tilray Canada recently signed a supply agreement with the Prince Edward Island Cannabis Management Corporation for the sale of cannabis in the province. The company will supply the province’s four cannabis stores and online channels following legalization in October.

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Mon, 10 Sep 2018 09:45:00 -0400 https://www.proactiveinvestors.com/companies/news/204548/the-supreme-cannabis-company-inks-dried-cannabis-supply-deal-with-tilray-204548.html
<![CDATA[News - Tilray shares finish lower after downgrade by Northland Capital Markets ]]> https://www.proactiveinvestors.com/companies/news/204441/tilray-shares-finish-lower-after-downgrade-by-northland-capital-markets-204441.html Shares of Tilray Inc (NASDAQ:TLRY) finished lower on Friday, still feeling the sting after Northland Capital Markets analyst Mike Grondahl downgraded the marijuana company's stock to Market Perform from Outperform.

The stock's valuation was "complex," according to MarketWatch. The analyst added that "one needs to fully appreciate the pendulum swinging toward medicinal and recreational use of cannabis globally."

After recovering in the regular session, the stock closed 2.76% lower at US$77.89 in New York, despite having announced a new cannabis supply deal with Namaste Technologies (CVE:N, OTCMKTS:NXTTF).

READ: Tilray Inc to supply cannabis products to Prince Edward Island

Grondahl said there was still a lot to like about Tilray and he is confident it will be a big player in the cannabis market, and specifically, in the Canadian recreational market, once it launches on October 17.

Among the positives he cited were Tilray's partnership to develop medical products with Sandoz Canada, a division of Novartis AG (NYSE:NVS).

"We have highlighted many positive attributes for Tilray Including Privateer Holdings and Leafly, its partnership with Novartis/Sandoz and distribution deals with Shoppers Drug Mart, Pharmasave and others in the pharmacy space and 7 Canadian provinces," Grondahl wrote.

"However, with the recent (massive) move in the stock, we believe the risk/reward is far more balanced at this time."

According to MarketWatch, the analyst withdrew his stock price target of $60, which was based on expected 2021 revenues of US$492mln.

Still, Tilray, which went public in July, has turned in the best performance of any IPO on a US exchange so far this year, Bloomberg reported on Wednesday.

Shares of Tilray which closed 10.8% down to US$80.10 on Wednesday.

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive

--Updates shares price, adds Namaste deal--

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Fri, 07 Sep 2018 08:37:00 -0400 https://www.proactiveinvestors.com/companies/news/204441/tilray-shares-finish-lower-after-downgrade-by-northland-capital-markets-204441.html
<![CDATA[News - Tilray Inc to supply cannabis products to Prince Edward Island ]]> https://www.proactiveinvestors.com/companies/news/204342/tilray-inc-to-supply-cannabis-products-to-prince-edward-island-204342.html Tilray Canada, a wholly-owned subsidiary of the cannabis group Tilray Inc (NASDAQ:TLRY) has signed a supply agreement with the Prince Edward Island Cannabis Management Corporation for the sale of cannabis in the Canadian province.

The purchase order allows Tilray to supply the province of Prince Edward Island’s four cannabis stores and online channels after the legalization of marijuana across Canada kicks off on October 17.

Read: Tilray is the latest pot stock to come under attack from short-seller Andrew Left's Citron Research

Tilray intends to meet demand from Prince Edward Island via its affiliate High Park Holdings Ltd, which produces an array of cannabis products grown by horticulturists who specialize in sustainable growing practices.

“We’re thrilled High Park will have the opportunity to expand our national reach and grow our retail network by supplying Prince Edward Island’s four cannabis stores with a safe, secure and reliable source of adult-use cannabis products,” noted Adine Fabiani-Carter, High Park’s chief marketing officer in a statement.

Read: Tilray quarterly revenue shoots up 95% but net loss at US$12.8mln; stock jumps 22% to 52-week top

Last month, Tilray reported that its second-quarter revenue came to US$9.7mln (C$12.7mln), up an eye-popping 95.2% compared to the second quarter of last year. The increase in revenue was driven by increased demand for medical marijuana from patients in Canada, sales to other licensed producers and international sales.

Its net loss for the quarter was US$12.8mln compared to US$2.4mln for the second quarter of 2017.

Tilray shares slipped by 3.85% to US$86.54 in Thursday’s pre-market session.

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Thu, 06 Sep 2018 07:55:00 -0400 https://www.proactiveinvestors.com/companies/news/204342/tilray-inc-to-supply-cannabis-products-to-prince-edward-island-204342.html