Tilray Inc (NASDAQ: TLRY) saw a fast rise on Friday during a slow day for the markets after Private equity company Privateer Holdings, led by venture capitalist Peter Thiel, released a statement saying that it wouldn’t sell its Tilray shares in the first half of 2019.
Investors in Tilray had been dreading January 15 as the general consensus on the street was that Privateer Holdings would sell at least some of their position as TLRY is up almost 500% from its IPO price. A significant short position has built up in recent weeks and they may be scrambling to cover as no new shares come into the market.
Peter Thiel said in a statement:
“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, a managing partner at Privateer, which owns about 80 percent of Tilray. “Given this, we do not have plans to register, sell or distribute the shares Privateer holds in Tilray during the first half of 2019.”
Tilray Inc (NASDAQ: TLRY) bills itself as a global leader in medical cannabis research, cultivation, processing and distribution. We aspire to lead, legitimize and define the future of our industry by building the world’s most trusted cannabis company. A proud pioneer, we are the first GMP-certified medical cannabis producer to supply cannabis flower and extract products to tens of thousands of patients, physicians, pharmacies, hospitals, governments and researchers on five continents.
Founded in 2013, Tilray’s corporate offices are located in Naniamo, British Colombia and the Company has an annual production capacity of 145,000 kilos. Tilray was the first medical cannabis producer in North America to be GMP certified in December 2016 and they were the first cannabis company to IPO on the NASDAQ and trades under the ticker symbol TLRY in July of last year.
In December Tilray announced a partnership to research non-alcohol beverages containing tetrahydrocannabinol (THC) and cannabidiol (CBD). The partnership is limited to Canada and decisions regarding the commercialization of the beverages will be made in the future.
The research partnership combines AB InBev’s deep experience in beverages with Tilray’s expertise in cannabis products. AB InBev’s participation will be through its subsidiary Labatt Breweries of Canada, one of the country’s founding businesses and its leading brewery, and Tilray’s participation will be through its Canadian adult-use cannabis subsidiary High Park Company, which develops, sells, and distributes a portfolio of socially responsible cannabis brands and products in Canada. Each company intends to invest up to $50 million USD, for a total of up to $100 million USD.
We will be updating on Tilray when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with Tilray.
AB InBev portfolio of well over 500 beer brands includes global brands Budweiser®, Corona® and Stella Artois®; multi-country brands Beck’s®, Castle®, Castle Lite®, Hoegaarden® and Leffe®; and local champions such as Aguila®, Antarctica®, Bud Light®, Brahma®, Cass®, Cristal®, Harbin®, Jupiler®, Michelob Ultra®, Modelo Especial®, Quilmes®, Victoria®, Sedrin®, and Skol®.
Tilray CEO Brendan Kennedy said “We are delighted to be joining forces with a world-leading beverage company, AB InBev, to research how to create enjoyable cannabis beverage products. Tilray and AB InBev share a commitment to responsible product development and marketing, and we look forward to beginning our work on this important partnership as Tilray continues to pioneer the development of a professional, transparent, and well-regulated cannabis industry.”
Pot stocks have been extremely volatile over the past several months since legalization in Canada in October and several states in November voting to legalize recreational and medical use of marijuana.
Tilray hit highs of $300 at the height of the pot boom but collapsed with the rest of the sector in October. We will be updating on Tilray when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with Tilray.