IB Net Payout Yields Model

Tilray: 250 Million Reasons Shareholders Aren't Happy


  • Tilray continues to urge shareholders to approve Proposal 1 to lift the authorized share count to 990 million shares.
  • The Canadian cannabis company has proposed a plan to boost FY24 (June) revenue to $4 billion while current analyst estimates are only $1.37 billion.
  • Investors are rightfully balking at the company boosting the authorized shares by ~250 million when organic growth is preferred.
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Tilray (TLRY) had a huge day back in July following earnings as the Canadian cannabis company promoted a $4 billion revenue future in a just a few years. The enormous growth potential propelled the stock higher, but Tilray has to obtain these revenues via major acquisitions causing some heartburn amongst shareholders. My investment thesis remains Bearish on the stock due to the rich valuation and major M&A plans ahead.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review th disclaimer page for more details. 

Update - Sept. 10

Tilray still got approval to triple the business via acquisitions which is a rather odd goal. Any company can buy revenues, good companies grow it organically.

-Tilray (TLRY -0.9%) announced that majority holding stockholders approved an increase in the number of authorized shares of its common stock.

-Since the merger which closed in May 2021, the new Tilray has made substantial strides across its business, by driving increased revenue through rapidly expanding its international medical business, introducing a new medical brand in Canada while increasing its share in that market, and making strong progress towards its target of $80M in synergies.

-With additional authorized shares, Tilray is now able to accelerate its progress towards its goal of delivering $4B in revenue by FY24 end.


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