Tilray Inc. – TLRY

Tilray Inc.

Meta description: Tilray is one of the largest cannabis companies in the world. The company is headquartered in Nanaimo, British Columbia, Canada, and has significant operations across the world. It was incorporated in the United States in 2013 and listed on the Nasdaq under the ticker symbol “TLRY.”

Company Overview

Established in 2013, Tilray was initially incorporated under the American company, Privateer Holdings. In December 2016, it achieved GMP certification, thereby becoming the first North American medical cannabis producer to do so. To raise capital, the company filed for its initial public offering (IPO) on Nasdaq in July 2018. At a price of $17 per share, it raised $153 million in the process. Tilray trades on the exchange under the ticker symbol “TLRY.”

The company operates as a pharmaceutical company with an emphasis on experience, precision, research, and care. Presently, it has professionals available on the ground in 12 countries who attend to its thousands of clients. It has been able to assemble a team of professionals to drive its cannabis research, product development, marketing, and distribution.

Tilray takes a scientific approach to product development: it uses standardised, active ingredients in its formulations. It cultivates a wide range of Cannabis products and offers its medical marijuana products in two forms: extracts and dried flower. In the United States, the company has established itself as a leader in hemp which became legal in the country in December 2018.

Tilray: A Management of Industry Experts

Tilray has a competent and diverse management team. The team comprises industry-leading expert horticulturist, research scientists, patent advocates, and engineers. It also has a medical advisory board.

Brendan Kennedy has been the President and Chief Executive Officer since January 2018. Also, since 2013, he has served as the Chief Executive Officer and a member of the board of directors of Tilray Canada Ltd., a subsidiary of Tilray. He has a deep knowledge and experience in the industry, having been the founder of Privateer Holdings, a private investment firm exclusively focused on investing in the cannabis industry.

From John Andonoff as the Global Medical Sales Development Officer to Françoise Lévesque, the Master Horticulturist, the company’s management team is undoubtedly diverse, experienced, and true professionals in their fields.

A Growth Strategy That Emphasises Research

Tilray is research-driven. The huge premium it places on research reflects in the type of partnerships it makes and the clinical programs it runs. For instance, the company has had clinical testing partnerships with numerous institutions such as the University of Sydney and the University of British Columbia.

The clinical trial program conducted with the University of Sidney was targeted at evaluating the efficacy and tolerability of medical cannabis in treating chemotherapy-induced nausea and vomiting. Also, Tilray supplied the University of British Columbia its cannabis for evaluation in the management of post-traumatic stress disorder.

Moreover, in another research partnership led by The Hospital for Sick Children in Toronto, Canada, Tilray’s medical cannabis products were evaluated for efficacy and tolerability in the treatment of epilepsy in children. Its products have also been evaluated for other conditions including glioblastoma.

The company’s clinical research program is not only creating leads for its products in terms of medical use but is also evolving the current scientific understanding of the field of cannabis.

Operation Expansion To International Markets

Tilray also engages in strategic expansions to boost its global presence. Being one of the first Canadian licensed medical cannabis companies, Tilray has grown to become one of the country’s leading providers of quality medical cannabis products serving thousands of patients from different provinces.

Nevertheless, the company has since expanded to international markets — ranging from Europe to Latin America. It was the first North American medical cannabis company to legally export medical cannabis products to Europe and currently has them available in hundreds of pharmacies across the continent. It has a cultivation license from the Government of Portugal.

To strengthen its presence in Latin America, Tilray established in Chile the subsidiary, Tilray Latin America, to import, produce and distribute its branded medical cannabis products in the region. It also has significant operations in Australia and New Zealand. It was the first North American medical cannabis company to legally export its products to Australia and New Zealand.

Tilray seeks to continue taking advantage of evolving laws and regulations in different locations to expand its operations to international markets.

Strategic Partnerships Expected To Propel Revenue Growth

In 2018, Tilray entered into a global alliance with Sandoz, a division of Novartis. The co-branding deal was intended to boost the availability of non-combustible medical cannabis products in global markets where they are legalised. The deal was marked as the first significant interest of big pharma into the cannabis industry.

The same year, in December, Labatt Breweries, a subsidiary of the world’s largest brewery company, AbInBev, struck a strategic partnership with Tilray’s High Park Company in a deal valued at over $100 million. The objective of the deal was to research non-alcoholic cannabis product-infused beverages.

In 2019, the company also entered into a revenue-sharing deal with over $250 million in worth with Authentic Brands Group. Also, Tilray doubled its domestic production capacity when it reached an agreement with Natura Natural Holdings, an owner of over 155,000 square feet in licensed cultivation greenhouse facilities in Ontario.

Nevertheless, Financials Reveal Operating Losses

Tilray’s fiscal year ended December 31, 2018, saw revenue growth from $20.5 million to $43.1 million. However, net loss rose from $7.8 million to $67.7 million. Significantly, the company’s domestic and international revenues increased from $19.8 million to $40.2 million and $763, 000 to $2.9 million.

Mostly, a decline in Foreign exchange gain and an increase in expenses were the responsible factors for the increased net loss. During the period, the company posted an increase in sales and marketing expenses from $7.2 million to $15.4 million.

Currently, Tilray has a market capitalisation of approximately $5.1 billion. Despite being the top performing Canadian marijuana stock of 2018, 2019 has not been so good for Tilray (TLRY). Presently, its share price hovers around $45, almost 600% down from its 52-week high of $300.

Summary

Perhaps, what will work out best for Tilray is the great alliances that it has formed. As a result of them, Tilray has more opportunities for future growth. Add to this its solid — and ever-expanding — international operations. Another advantage that Tilray might have over its peers is its intensely research-driven operations, which can help it to develop novel products easily relative to its competitors. Also, with its shares currently trading around $45, this might be the right time to tuck Tilray in your bag.

 

 

 

About Travis Garlick 1531 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.