Tilray Inc. (NASDAQ: TLRY) entered the markets with a bang on Thursday, and it is continuing its run to close out the week. This is one of the first marijuana companies to come public in the United States.
The 9.0 million shares were originally priced at $17, above the expected price range of $14 to $16, but actually entered the market at $23.05 on Thursday. The stock is up even higher in Friday’s session.
The underwriters for the offering are Cowen, Roth Capital Partners and Northland Capital Markets.
This company is pioneering the future of medical cannabis research, cultivation, processing and distribution globally, and it intends to become a leader in the adult-use cannabis market in Canada once legalized later this year.
Tilray has supplied high-quality cannabis products to tens of thousands of patients in 10 countries spanning five continents through its subsidiaries in Australia, Canada and Germany and through agreements with established pharmaceutical distributors, and it produces medical cannabis in Canada and Europe.
The firm was an early leader in the development of the global medical cannabis market. It was one of the first companies to be licensed by Health Canada to cultivate and sell medical cannabis in Canada, and also one of the first companies to become a licensed dealer of medical cannabis in that country. The cannabis industry is rapidly expanding in Canada. More than 100 other companies are currently licensed, though only a few were licensed earlier than Tilray, and there are hundreds more applications for licenses being processed by Health Canada.
In terms of its finances, the company reported its 2017 sales as $20.54 million, an increase of 62.4% from $12.64 million in the 2016 full year.
Tilray intends to use the net proceeds from this offering to further develop its cultivation and processing capacity, as well as to repay debt. The remainder will be used for working capital and general corporate purposes.
Shares of Tilray were last seen up about 15% at $25.74, with a post-IPO range of $20.10 to $26.50.
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