William Sumner
On Wednesday, the Canadian-based cannabis cultivator, processor, and distributor, Tilray Inc. (TLRY), completed its initial public offering and shares of the company have already begun trade on the NASDAQ Global Select Market under the symbol “TLRY.” The shares were priced at $17, which was above the estimated range of $14-16. The stock also traded as high as $23 at one point for a 35% increase.
Tilray is offering 6,524,000 shares of Class 2 common stock in the United States and other select countries, excluding Canada, for a sum value of $110,908,000 USD. Another 2,476,000 shares of Class 2 common stock, which the company refers to as Subordinate Voting Shares, are being traded in Canada and other select countries, excluding the United States, at a price of $22.45 CAD per share; totaling to $55,586,200 CAD in value.
The combined value of both offerings totals to roughly $153 million USD. Tilray set out to raise $135 million.
BMO Capital Markets and Cowen are acting as joint book-runners for the IPO, with Cowen handling the U.S. IPO and BMO handling the IPO in Canada. Likewise, Eight Capital will act as lead manager for the Canadian IPO while Roth Capital Partner and Northland Capital Markets server as the lead manager and co-manager, respectively, for the U.S. IPO.
Additionally, Tilray has granted U.S. underwriters a 30-day over-allotment option to purchase up to 978,600 additional shares of Class 2 common stock and the Canadian underwriters a 30-day over-allotment option to purchase up to 371,400 additional Subordinate Voting Shares at the initial public offering price. The offering is expected to close on July 23, 2018.
Despite the number of shares issues, Privateer Holdings will remain the majority shareholder and primary owner of Tilray with 75 million Class 1 shares. As one of the first licensed medical cannabis producers in Canada, Tilray has already established a presence in 10 countries and will use the funds raised from this IPO to further increase its cultivation and processing capacity; as well as liquidity.
