Canadian cannabis company Tilray Inc. filed a registration statement for a proposed IPO or initial public offering on the Nasdaq Global Select Market. It filed confidentially with the United States Securities and Exchange Commission on June 19.
The company plans to list under the ticker symbol TLRY. Tilray intends to list its Class 2 common stock on the Nasdaq stock exchange, but stated that it still has yet to determine the number of shares it will offer or the offering’s price range.
Tilray’s filing came a day after Canada’s parliament made its final vote to legalize recreational cannabis nationwide. However, the British Columbia-based cannabis producer said that it doesn’t intend to list on any Canadian stock exchange.
In order to qualify the offering of securities in Canada and in order to ensure that Canadian purchasers are not subject to restrictions on resale, the company also filed a preliminary prospectus for a proposed IPO in Canada with the securities regulatory authorities in each Canadian province other than Quebec.
Tilray booked $23 million in sales for the year ended March 31, 2018.
Cowen & Company and BMO Capital Markets are the joint bookrunners for the IPO. More specifically, Cowen will be the sole book-running manager for the IPO in the U.S., while BMO Capital Market will be the sole book-running manager for the IPO in Canada.
The registration statement has not yet become effective, though. As such, the securities may not be sold and offers to buy may not be accepted until the registration statement becomes effective and until the Canadian securities regulatory authorities issue a receipt for a final Canadian prospectus.
The proposed IPO will be made by means of a U.S. prospectus, as well as a Canadian prospectus.
Tilray said that it is planning to use the funds from its IPO to build out cannabis cultivation and processing capacity at its facilities in Enniskillen, Ont., in London, Ont., and in Cantanhede, Portugal. It also intends to repay funds to Privateer Holdings.
Tilray Inc. is a federally licensed and vertically-integrated cannabis cultivator, processor and distributor. Tilray is based in Nanaimo, B.C., but has roots in the U.S. It was formed as a subsidiary of Privateer Holdings, which is a private investment firm exclusively focused on the cannabis industry. Privateer is based in Seattle. The firm’s portfolio of brands includes Goodship, Marley Natural, and Leafly.
Tilray said that Privateer is going to continue to control a majority of the voting power on its stock after the closing of the IPO.
In its filing, the company boasted of having its cannabis products available in 10 countries. It also mentioned having agreements with established pharmaceutical distributors located in 12 countries.
In Canada, the company has signed deals to supply medical cannabis to Shoppers Drug Mart and Pharmasave. It has also signed supply agreements for adult-use cannabis with Quebec, Yukon, and the Northwest Territories. It said that it is also finalizing a letter of intent with Manitoba.
Moreover, Tilray formed High Park Holdings Ltd., which is a subsidiary through which it intends to produce and distribute recreational cannabis.
Not the first Canadian cannabis company to list on a U.S. stock exchange
Tilray is not the first Canadian cannabis company to list on the Nasdaq. In February, Cronos Group became not only the first Canadian cannabis company, but the very first pure-play cannabis stock to list on the Nasdaq. Last month, Canadian cannabis producer Canopy Growth Corp. made its debut on the New York Stock Exchange.