Tilray to receive shares back from main shareholder as it eyes potential M&A, strategic investment
Tilray is getting some of its shares back. The Nanaimo, B.C.-based pot producer signed a deal with Privateer Holdings – which holds a roughly 77 per cent stake in the company – to acquire the investor in exchange for an equal number of new Tilray shares that will be issued to the U.S. private equity firm’s shareholders. The new shares will be subject to a two year lock-up agreement and may only be sold under certain circumstances, including offerings or block trades to institutional investors or via sales to strategic investors arranged at Tilray’s discretion. Meanwhile, Tilray’s CFO told Bloomberg the company doesn’t expect to be profitable for another year, reiterating a similar comment executives made during the company’s last quarterly results.
Canada’s cannabis advantage continues to be at risk to U.S. due to restrictive market
Canada is in jeopardy of losing its advantage as a global cannabis leader to the U.S. thanks to a lack of policy innovation, a messy patchwork of provincial regulations and severe restrictions on marketing and branding, according to Neil Selfe, founder and chief executive officer of Infor Financial Group. Canada’s pot companies are losing ground to their U.S. counterparts, Selfe told Bloomberg. “It’s a real consumer product in big U.S. states where it’s legal, and it isn’t that way yet in Canada despite the fact that we were first,” he said. Selfe made similar comments last month during an appearance on BNN Bloomberg stating Canada’s cannabis industry is operating with “one hand tied behind their back.”
Church of England may begin investing in medical marijuana sector
The Church of England is taking a closer look at the cannabis sector. Yes, your eyes aren’t deceiving you – the church’s investment arm is said to be looking to relax a self-imposed ban and consider investment in the medical marijuana industry, according to the Financial Times. The church, which holds £12.6 billion in its investment portfolio, will not invest in companies that earn more than 10 per cent of revenue from the sale of recreational cannabis.
Aleafia Health lays claim to being first to growing Canada’s first outdoor cannabis crop
Aleafia Health has planted its first marijuana plant outside its Port Perry facility, making it the first Canadian cannabis company to grow legal cannabis outdoors. The company said in a statement it began to plant some of its 13,000 starter clones two days after it received approval from Health Canada to amend its cultivation licence for outdoor cultivation. Aleafia also appears to have beaten other cannabis producers to the claim of being the first to put pot plants in the ground – WeedMD stated it plans to begin planting its outdoor crop during the week of June 10 while 48North hasn’t specified when it outdoor planting will begin.
– The total amount of system sales recorded by cannabis retailer Fire & Flower since opening in October when cannabis was legalized in Canada.
Cannabis Canada is BNN Bloomberg’s in-depth series exploring the stunning formation of the entirely new – and controversial – Canadian recreational marijuana industry. Read more from the special series here and subscribe to our Cannabis Canada newsletter to have the latest marijuana news delivered directly to your inbox every day.
Full story is available here.