TLRY made an IPO on Nasdaq Thursday at $17 a share, just over the forecasted price of $14-$16, valuing the company at between $1.3 billion and $1.5 billion.
No, we don’t know what most of that means either. But we will take CNBC’s word for it when they say that history got made Thursday when Tilray became the first ever “pure-play” cannabis company to make an Initial Public Offering on a major U.S. stock exchange. If you’re as dumb and ignorant as the Dabs Mag staff, then you’ll need to unpack that a little further. By “pure-play” cannabis company, they mean Tilray is the first ever company which works only in producing and selling cannabis that has made it into a major U.S. exchange. To get our heads around IPOs, we just rewatched that part of Wolf of Wall Street:
To give some background on Tilray, though they are a U.S. company, they don’t make or sell shit in the United States, probably because that is legally quite sticky. What they do do is grow cannabis in Portugal and Canada, and then sell it in medical markets in Canada, Germany, and Australia.
The company’s President and CEO Brendan Kennedy has some pretty grandiose ideas about the future of cannabis, as he told anchors on the CNBC show Power Lunch. “Eight years ago you would have seen 90 percent of the revenues in Colorado would have come from products that would be smoked,” he said. “Today it’s about 40 percent. Long term, I think we’ll end up with smoking being about 10 percent [of cannabis consumption] and all the other products being 90 percent.”
One day, Kennedy dreams, there will be world where you get your weed as easily “as a beverage in a bar.” “Instead of alcohol, they’ll have cannabis,” he elaborated.
Wow! Impressive stuff. Kind of sounds like bullshit, but you never know.
Tilray’s first pure-play claim to fame comes shortly after two other unpure-play cannabis companies, Cronos Group and Canopy Growth, went public. To point out a strange quirk of the laws, though cannabis is not legal in the United States, it is allowed on the stock market and though it’s about to be legal in Canada, a U.S.-based cannabis company cannot trade on the Canadian stock exchange on the grounds that they violate laws in their home country.