Marijuana Stocks: Tilray Set To Become First U.S. Marijuana IPO

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investors.comCanadian medical pot producer Tilray will join the growing list of U.S. marijuana stocks after its initial public offering on the Nasdaq this week, in what would mark the first U.S. first pure-play marijuana IPO.

This year, the first two straight-up marijuana stocks joined the New York Stock Exchange and the Nasdaq. This week, the cannabis industry could cross another milestone: The first pure-play marijuana IPO on a major U.S. exchange.

Along with being the U.S.’ first pure-play marijuana IPO, Tilray would be the third marijuana stock to list on a major U.S. exchange. Canopy Growth (CGC), which already traded in Canada under the ticker “WEED,” first listed on the New York Stock Exchange in May. Cronos Group (CRON), which also traded in Canada initially, first listed on the Nasdaq in February. But those listings were not technically IPOs.

An IPO could also fund Tilray’s global ambitions, particularly in the European Union and in Germany. Canopy Growth last month also pegged Germany as a market to watch.

Tilray last week said it would offer 9 million shares with an expected price range of $14-$16 apiece, an offering that could raise as much as $144 million. The company declined to make someone available for an interview ahead of the planned IPO, saying it was in a quiet period before the offering.

According to a regulatory filing this month, the company is aiming to have around 886,000 square feet of worldwide production space by the end of this year. It has offices in Toronto, Berlin and Sydney, and cultivation facilities in Canada and Portugal. The company sells marijuana in 10 countries via subsidiaries and pharmaceutical distributors, the filing said. Privateer Holdings, a cannabis investment company in Seattle, owns Tilray.

Over the past several months, Canadian marijuana companies have had an easier time listing on U.S. exchanges, which don’t necessarily exempt marijuana companies if their business is legal in the nation where they’re based. Medical marijuana is already legal in Canada. Recreational legalization is set to kick in on Oct. 17.

 

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