When talking about marijuana nowadays, you should think of much more than just pun-named shady shops or getting high with a bunch of friends. Pot industry is blooming as the medical cannabis is on the rise. The game has changed a lot since the use of medical marijuana was legalized in Canada. And before the stock prices go up higher, it is time to invest.
While lots of companies appeared as the pot madness began, there are few big names that definitely stand out. One of them is Tilray Inc. Whether it is medical cannabis research, cultivation, processing or distribution, they are the ones to watch right now. The company was the first one to become 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. They cultivate wide range of strains including sativas, indicas, hybrids and CBD-rich varieties. Headquartered in Nanaimo, British Columbia, Tilray team operates in 7 different countries.
In July 2018, Tilray (TLRY) became the first cannabis-related company to IPO in the U.S. When it first appeared on the market, the stock traded for $17. It only took about one month for the price to double, which was a huge success. However, it was on September 19, 2018 when things got really wild, with the stock prices jumping 93% to a high of $300 per share. The number was pretty unstable, but finally pulled back to close in positive territory at $214 per share. No need to say, those who had invested in Tilray, where not disappointed. As for the predictions, it is hard to say what 2019 has in hold for their stocks, but let’s have a look at some number to get a better idea.
In 2017, Tilray Inc. saw revenue of $20 million.
The majority of the Tilray Inc. shares are privately held by private equity firm Privateer Holdings. Private shareholders will be able to sell their shares to the public in January of 2019.
One of the reasons behind Tilray’s huge boost was the big announcement by the U.S. Drug Enforcement Administration (DEA) that the company got official approval to import its marijuana products from Canada to the U.S. This meant that the company could take its products to the clinical trial phase in an effort to determine the medication s impact on the neurological movement disorder essential tremor. Company’s clinical research director Catherine Jacobson explains that the essential tremor study, the first of Tilray s projects in the U.S., is part of a larger project aimed at determining "how to target therapies for specific symptoms."
Tilray saw a huge raise in its total assets, from $54 million (end of 2017) to $106 million for the period ending June 30, 2018. During this six month period, company generated more than $17.5 million in revenue, as compared to just over $10 million for the same period a year before.
Tilray Inc. was also the first company to legally export medical cannabis to Australia and New Zealand and still remains to be one of the leading companies to supply that region with the product. They also export to Europe based on their cultivation license from the Government of Portugal. Their partnership with South American medical cannabis firm Alef Biotechnology allows them to expand to Argentina and Chile.
Tilray Inc.’s huge success over a short period of time didn’t go unnoticed by other big Companies prompting them to make some valuable investments. Dec. 18, 2018 – Tilray signs a partnership with drugmaker Novartis AG to research, develop, and distribute medical marijuana around the world, also known as Tilray’s first global deal. The company’s share price went up by 12 percent after the news burst.
Dec. 20, 2018 – just 2 days later, Tilray entered into another big partnership with the world’s largest brewer, Anheuser-Busch InBev (BUD), to develop cannabis-infused non-alcoholic drinks for the Canadian market. Based on the deal, each company is investing $50 million in research. According to forecast the cannabis-infused beverage industry could see annual U.S. sales of $500 million over the next five years. The company’s share price went up by 15.32 percent thanks to the new partnership.
Both deals happened soon after Canada legalized recreational cannabis edibles, beverages, and smoking products on Oct. 17, 2018.
Tilray Inc. is definitely worth your time if you are thinking about investing in pot stocks. Just the DEA news about Tilray’s permit to import its products in the U.S. shot up their stock prices by up to 30% in a single day. This was when Tilray Inc. surpassed Canopy Growth (CGC) and became the most valuable publicly-traded marijuana company.
While the big change in numbers might look good, it also can be somewhat scary for new investors and make them question the stability of the company. However, so far all the steps that Tilray Inc. took as a medical cannabis company are all towards a future success.