(Disclaimer: These articles are merely informational, and in no way should be considered expert financial advice. As with any investment, psilocybin stocks, especially those owned by newer companies, are subject to significant fluctuations in value. Therefore, caution should always be observed when investing.)
Company: Tilray, Inc.
Investment Risks: Moderate
Investment Rewards: Moderate/High
Current Price: $12.73/Share
Company Background: According to Investopedia, “Tilray, Inc. is a global cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America. The firm is focused on medical cannabis research, cultivation, processing, and distribution of cannabis products worldwide. Its products include dried cannabis and cannabis extracts.” Headquartered in New York, NY, Tilray owns the following subsidiaries:
- Manitoba Harvest–specializing in retail hemp products
- High Park Co.–offers a retail line of cannabis products
- Tilray Canada, Australia, Europe, and Latin America–offers a line of medical marijuana products
Leadership: Senior Management Team:
- Irwin D. Simon, Chairman and Chief Executive Officer
- Carl Merton, Chief Financial Officer
- Denise Faltischek, Head of International and Chief Strategy Officer
- Jim Meiers, President, Canada
- Jared Simon, President, Manitoba Harvest and Tilray Wellness
- Rita Seguin, Chief Human Resources Officer
- Dara Redler, Interim Chief Legal Officer and Corporate Secretary
- Berrin Noorata, Chief Corporate Affairs Officer
- Lloyd Brathwaite, Chief Information Officer
- Freddy Bensch, Chief Executive Officer, SweetWater
Mission/Philosophy of the Company: Tilray’s mission is “to improve lives through the power of cannabis and hemp by building the world’s most trusted and valued cannabis and hemp company.” Tilray also has a string of socially conscious aspects revolving around the following ideas listed on their website:
- Advancing Cannabis Research–Tilray is currently supporting clinical trials around the world studying the efficacy of cannabis in treating indications including chemotherapy-induced nausea and vomiting, essential tremor, childhood epilepsy and PTSD
- Patient Advocacy and Access–Tilray believes that patients around the world should have access to safe, quality and affordable cannabis.
- Social Justice–Tilray is fighting to empower those that have been charged in the past with non-violent cannabis offenses. We fund programs that provide entrepreneurship opportunities, career training and mentorship for people with criminal histories.
- Corporate Citizenship–Tilray proudly supports organizations including Wounded Warriors Canada; The Canadian Institute of Military Veterans Health Research; The Nanaimo Hospice Society; The Nanaimo Family Life Association; Hectate Lodge; Christmas for Everyone (Enniskillen); Cannativa Medical Cannabis Conference (Portugal) and Sustainable Cannabis Conference (Vienna).
Performance/Potential Issues: Over the past year’s time frame, TLRY has risen from $8.12/share to $12.73/share, with a high point of $63.91 in February of 20231. The stock has also tumbled down significantly over the past month, from a high of $18.84 at the end of June. Surprisingly, Zacks.com gives an overall rating VGM rating of B likely based on its strong growth potential. Stockinvest.us is less optimistic, stating, “Tilray Inc. holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock.”
The Motley Fool points out that “most Canadian cannabis producers have grossly underperformed the broader markets since the start of 2019,” and it appears that Tilray is no exception.”
However, Tilray’s merger with Aphria may give it the capital it needs to survive future volatility and enough juice to deal effectively with competitors as Canada recovers from the COVID-19 pandemic. But investors should be aware of pending litigation against Tilray concerning the merger with Aphria. As reported by technical420, “ . . .three separate shareholder lawsuits have been filed. The complaints generally allege that Tilray and the members of its Board of Directors did not include pieces of material information in the proxy statement.” Tilray has responded by saying “. . . the plaintiffs’ allegations lack merit and that it will not disclose additional filings or subsequent amendments.”
However, that is not the only litigation issue Tilray is facing. According to thecannabisinvestor.ca:
“Tilray (NASDAQ: TLRY) is facing some serious allegations after Law360 broke a story recently which details the $150 million lawsuit filed against the Canadian licensed producer (LP) in the state of Florida. According to the lawsuit, Tilray allegedly plotted to bankrupt the Trimax Corp. subsidiary Saavy Naturals for the purpose of acquiring it at a reduced valuation to complement its line of CBD infused personal care products.”
Final Thoughts: If you can stomach the nearly $13/share price, and the ongoing litigation, TLRY may not be a bad option if you are going to play the long game. The company appears to have the infrastructure and personnel in place for this as well, but they will face serious headwinds in this highly competitive market.
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