Tilray, Inc. - Class 2

Tilray, Inc. - Class 2 NASDAQ
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History of TLRY

Important events

Sep 132021

Share volume boost

Tilray shareholders vote with a majority to authorize an increase in shares.

After some urging from the company, the majority of Tilray shareholders have voted to authorize an increase of around 250 million shares of common stock. Tilray has 450 million shares outstanding following the recent Aphria merger, with the additional shares taking the total outstanding to 990 million.

The reasoning behind the issuance is to help the firm achieve its goal of reaching $4 billion in revenue by the end of the 2024 financial year. However, current analyst estimates are only $1.37 billion for FY24, so the company has a long way to go if it wants to triple that. Its current growth strategy is to expand its share of the Canadian retail market from 16% to 30%, push the European medical use market to $1 billion, and expand into the U.S. market alongside legalization moves, through partnerships and acquisitions.

But Stone Fox Capital warned on Seeking Alpha this week that:

Most investors want to see a combined Tilray and Aphria reach 30% market share via taking share from smaller players, not via buying revenues.

It is worth noting that analysts recently cut Tilray's FY22 revenue targets to below $800 million.
Kym Mackinnon / Unsplash
Sep 012021

Ay Caramba! Mexico moves towards marijuana legalization

Tilray jumps over 4% on Tuesday thanks to some positive legalization news out of Mexico.

Cannabis stocks were smoking on Tuesday, lifting across the board as Mexico continues to make moves towards full legalization. Mexico is already way ahead of the U.S. in terms of the legalization process – in June, its Supreme Court removed the ban on the personal use and cultivation of marijuana, calling it unconstitutional. Congress is still figuring out a way to completely decriminalize cannabis, especially with its President's well-known anti-marijuana stance, but a top Mexican Senator says that lawmakers will bring up the issue in the next session with the aim of establishing a regulated marujuana market in the country.

Excitement over the potential to expand into a brand new legal market sent Canada’s Tilray up 4.27% to $13.69. That’s still down nearly 80% from its February peak of $67 though, when the firm agreed a distribution deal with the U.K.’s Grow Pharma.
Image: Mexican flag, Jorge Aguilar / Unsplash
Aug 182021

Tilray places another bet on U.S. legalization

Cannabis giant Tilray gambles on U.S. legalization, acquiring a majority stake in American cannabis retailer Medmen.

Prices of Tilray popped 5% in extended trading on Tuesday after the cannabis company got a foothold in the U.S. marijuana market in the hope that it will soon become legal at a federal level. The deal saw Tilray and other investors buy 75% of Medmen’s outstanding secured convertible notes for $168.5 million, which, once converted, will give the company a significant stake in the U.S. cannabis company. Tilray is fresh out of a merger with Aphria, making the combined company the biggest marijuana seller by revenue in the world. Chief Executive Irwin Simon said in a statement:

The investment we are announcing in MedMen securities today, one of the most recognized brands in the $80 billion U.S. cannabis market, is a critical step toward delivering on our objective as we work to enable Tilray to lead the U.S. market when legalization allows. What Medmen does for Tilray is that it gives us a great brand. Ultimately, once legalization happens, it gives us the potential to own a great company that we can ultimately take into the rest of the world.

Medmen operates 25 retail stores so far, and plans to open five more by the end of the year.
Jul 302021

Tilray takes a trip after mixed earnings

Tilray is high on life, with stock prices lifting 25% on Wednesday after its first earnings report since its merger with Aphria sees impressive numbers despite COVID-related obstacles.

Shares of Canadian pharmaceutical and cannabis company Tilray went on a celebratory trip and ended Wednesday up over 25% following its first quarterly report after its mega-merger with Aphria in May. The pair joined forces last month in a reverse merger to make the world’s largest cannabis producer by sales. The new cannabis giant’s fiscal fourth quarter just missed sales estimates but came in above target on earnings, reporting earnings per share of $0.18 compared to a loss of $0.39 per share last year, and revenue increased 25% year-over-year to $142.2 million compared to estimates of $142.93.

The report may not have hit the nail on the head, but it sure got the attention of the online army. Tilray stock was the third most mentioned stock on WallStreetBets in the last 24 hours and the top trending stock on Stocktwits as retail traders cheered on the newly merged company.

$TLRY this is going back to $150. Buy and hold!

one user said on Stocktwits.

Still down bad but we're getting there. To the moon boyz!

another Reddit user added.

The euphoria didn’t last though, and Tilray sank back 4.34% on Thursday.
Jun 032021

Puff the magic dragon

Tilray is on a high, puffing up 11% on the back of news that Amazon will be backing efforts to legalize marijuana.

Tilray, along with other big cannabis companies, is on the up after Amazon announced its support for federal cannabis legalization efforts, and called for other companies to do the same. The e-commerce giant said in a blog post on Wednesday that it supports proposed legislation to legalize marijuana at a federal level, with its public policy team actively supporting The Marijuana Opportunity Reinvestment and Expungement Act of 2021 (MORE Act). This is great news for cannabis stocks, because even though a lot of states have legalized the stuff, most employers won't work with the industry because of its bad rep with the federal government – so this move indicates a growing willingness within corporate America to get behind the issue.

The news certainly sent pot stocks puffing up. Sundial Growers rose 13% on the news, Aurora was up almost 8%, and Canopy was up just under 5%. Investors are sure that cannabis reform will make it easier for weed companies to do business, by boosting demand from those who dabble recreationally. After Tilray’s merger with Aphria, the pair have become a power couple in the sector and represent the world's largest cannabis outfit – so it stands to reason that a lot of the benefit of legalization will land on them. It’s also got the stock a whole lotta love on social media (and we all know the benefits that can bring, ahem, Elon) – Tilray was the seventh most mentioned stock on WallStreetBets.

Despite the low chances that the Act is passed the Senate (due to the filibuster), increasing media coverage is likely to attract the attention of the average retail investor,

Vanda's Ben Onatibia and Giacomo Pierantoni said.
May 102021

A match made in heaven

Tilray and Aphria close their merger, but the latest results take the edge off their high.

Last week Monday, Aphria and Tilray announced the official closing of the merger between the two, creating the world’s biggest marujuana company (as measured by revenue.) That’s dope.

The new combined company, which will operate under the name Tilray, is expected to generate pre-tax cost-saving synergies of $81 million within 18 months. Analysts are keen, and the new firm has already won an upgrade from Jeffries and a 14% price hike. The investment firm double upgraded Tilray to buy from underperform, raising its price target from $4.77 to a whopping $23, with analyst Owen Bennet calling the pair a "perfect match." Bennet expects combined sales to grow 33% to $1.7 billion in 2024, highlighting the company’s strong sales and profit profile compared to rivals such as Canopy Growth.

"In Canada, a leading portfolio of brands is supported by an efficient cost structure. In Europe, the market is now picking up, while Tilray's scale and Aphria's unique German positioning make it perfectly suited to succeed,"

said Bennet.

It’s not all rainbows and unicorns though. Tilray’s latest earnings cast a shadow over the gains – anticipation for the release sent prices down over 7% on Monday, and the report missed expectations.

Tilray reported a quarterly loss of $0.19 per share compared to a loss of $0.49 a year ago on expectations of $0.10 loss per share. Revenue came in at $48.02 million for Q1 of this year compared to $52.1 the same period last year, missing estimates by 22.38%. The company has only topped estimates once in the last four quarters, as it deals with the effects of COVID-19, and the market is still waiting for clearer signs that the company can capture a meaningful portion of the cannabis market.