It’s the first pot stock to “go public” in an initial public offering.
And only the third Canadian cannabis producer to get shares listed on a major U.S. exchange.
Tilray (NASDAQ: TLRY) shares surged out of the gate.
The Tilray IPO is the latest sign of the NEW bull market for cannabis stocks.
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The Tilray IPO was initially priced with a range of $14 to $16 per share.
The stock offering was oversubscribed multiple times. That means there were far more buyers than shares available.
That encouraged the investment bankers to increase the Tilray IPO price to $17 per share.
Shares opened for trading at $22.88 – and closed the session at $22.55.
Investors who claimed IPO shares are now sitting on a one-day gain of 32.6%.
Tilray was able to raise $153 million from investors. And the valuation was a very healthy $1.6 billion.
After the first day of gains, Tilray is now valued at over $2 billion. That makes Tilray one of the 10 most valuable cannabis stocks in the world.
Most publicly traded pot stocks go public in Canada and seek a dual listing… or they go public via a reverse merger with an existing OTC or pink sheets shell company.
Yet Tilray was the first company to go public via a conventional IPO. Using investment banks Cowen, Roth Capital and Northland Capital, Tilray successfully listed shares on the NASDAQ exchange.
Tilray IPO: Richly Priced Stock
Shares of Tilray are trading at a premium valuation among cannabis stocks.
The company’s valuation is slightly greater than Aphria (OTC: APHQF). So, let’s compare the two companies…
In the last three months, Aphria doubled its revenues to $10.3 million. Plus, the company is profitable.
Meanwhile, Tilray grew its revenues by only 55% to $7.8 million. And the company reported a net loss.
Aphria seems to be a better deal. The company is growing faster, has a larger revenue base and strong profit margins.
Tilray shares are getting a premium valuation for three reasons.
- The Tilray IPO listing process brought a lot of attention to the company.
- Trading on the NASDAQ makes the stock more accessible to U.S. investors.
- Backing by Privateer Holdings and PayPal co-founder Peter Thiel adds credibility.
Right now, I’m sitting on the sidelines with Tilray stock.
There are better values out there . . . including 10 stocks that could DOUBLE in before Oct. 17.
My 420 Club webinar reveals important details.
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Yours in Profits,
P.S. There’s a new bull market for cannabis stocks. That’s why I’m…
Investing $100,000 of my kids “college savings fund” in this huge growth sector.
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