Tilray shares in high gear; Nanaimo firm hits Nasdaq
NANAIMO — Shares of cannabis producer Tilray Inc. surged as much as 40 per cent on the Nasdaq market in its first day of trading, marking the first initial public offering for a Canadian marijuana company on a major U.S. exchange.
The Nanaimo-based company’s stock was priced at $17 US per share; its previously stated range was $14 to $16.
Tilray’s shares rose as high as $24 on the Nasdaq before closing at $22.39.
Tilray is the first Canadian cannabis producer to debut on a U.S. exchange, but the third to list its shares south of the border. Cronos Group Inc. started trading on the Nasdaq in February and Canopy Growth Corp. began trading on the New York Stock Exchange in May.
Tilray, which had been wholly owned and funded by Seattlebased private equity firm Privateer Holdings before a Series A round of funding this year, has said it does not intend to list on any stock exchange in Canada.
Its initial public offering comes as Canada prepares to legalize marijuana for recreational use on Oct. 17.
In its regulatory filing, Tilray said its products are available in 10 countries and that it has agreements with established pharmaceutical distributors in 12 countries.
In Canada, the company has signed agreements to supply medical cannabis to Pharmasave and Shoppers Drug Mart, subject to changes in Canadian regulations or licence approvals to facilitate such distribution.
Tilray has also signed a memorandum of understanding with the B.C. Liquor Distribution Branch.