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Cannabis Weekly Round-Up: Tilray Asks for Investor Support
Tilray CEO Irwin Simon told investors the company can reach C$4B in revenue by 2024 if they approve its acquisition strategy.
In a public letter to investors, Canadian cannabis producer Tilray set the lofty goal of reachinf C$4 billion revenue, if the company can get the support from its investors for its merger and acquisition (M&A) plans.
A fellow cannabis company shared the progress of a partnership designed to elevate the quality of its cannabinoids production.
Keep reading to find out more cannabis highlights from the past five days.
Tilray promises it can make C$4B in revenue if acquisition goes through
In a public plea of support for the company’s ongoing spending plans Tilray (NASDAQ:TLRY,TSX:TLRY) CEO and Chairman Irwin Simon said the company is capable of hitting a C$4 billion revenue mark by the end of its fiscal 2024, if it can complete its current acquisition strategy.
“I want to be clear: our conviction in both the opportunity and our ability to execute on these key growth plans has never been stronger. But our ability to do so rests on the support of our shareholders, from whom we have been seeking support to get important proposals passed,” Simon said in his letter.
The executive confirmed the company currently has the support of approximately 49 percent of its investor base. However, he explained, the company needs to hit a 50.1 percent line to complete the deal.
The company proposal investors need to approve would make it so Tilray can issue additional shares for its M&A plans. “We need a majority of all the shares issued and outstanding to vote in favor of Proposal 1 in order for it to pass,” Simon said.
A meeting between the company and its investors is scheduled for September 10 to vote on the plans of Tilray.
Cannabinoid development reaches new stage for Cronos partnership
A long running partnership for Cronos Group (NASDAQ:CRON,TSX:CRON) presented some results this past week for the cannabis company as it told investors it had reached a milestone in a novel development method for eight cultured cannabinoids.
Cell programming company Ginkgo Bioworks, which is set to merge with Soaring Eagle Acquisition (NASDAQ:SRNG), said the partnership with Cronos has achieved “the productivity target for cannabigerolic acid (CBGA), which will support the Cronos Group’s planned CBG product launch this fall.”
Jason Kelly, CEO and co-founder of Ginkgo Bioworks said using cell programming methods in cannabinoids can unlock “rare and important molecules”
With the announcement came the confirmation of Cronos also issuing approximately 1.5 million common shares to Ginkgo.
“Ginkgo’s platform enables companies across a multitude of industries to reach their customers with better products,” Kurt Schmidt, CEO and president of Cronos Group said.
Cannabis company news
- Planet 13 Holdings (CSE:PLTH,OTCQB:PLNHF)issued its Q2 2021 financial results, reporting a net loss line of US$4.4 million despite securing US$32.8 million in revenue for the quarter. Larry Scheffler, co-CEO of Planet 13, said the growing amount of tourism returning to Las Vegas is a positive for the business of the company.
- The Green Organic Dutchman Holdings (TGOD) (TSX:TGOD,OTCQX:TGODF)confirmed to investors it will be delisting from the TSXV in favor of the CSE, as the company attempts to encounter “reduced filing fees and obligations.” The move is also being described as beneficial to TGOD’s future plans for US market exposure.
- Jushi Holdings (CSE:JUSH,OTCQX:JUSHF)released its financial results for the Q2 2021 period. The company reported net income of US$4.8 million for the period ended on June 30, which was boosted by a 14.6 percent uptick in revenue, amounting to US$47.7 million. Jim Cacioppo, CEO, chairman and founder of Jushi, told investors he was pleased with the recent batch of results and the company is in a position to continue expanding its national footprint in the US.
- Avant Brands (TSX:AVNT,OTCQX:AVTBF)announced its shares had been included into the Global X Cannabis ETF (NASDAQ:POTX). “Our inclusion in the Global X Cannabis ETF will provide us with the opportunity to continue expanding our exposure to investors and institutions across North America and globally,” Norton Singhavon, CEO and founder of Avant Brands, said.
- Flora Growth (NASDAQ:FLGC)closed its investment transaction, worth two-million €2 in Hoshi International, a European medical cannabis company. “Not only has Flora made an investment into Hoshi, but through our securities swap, the Hoshi management team also has a vested interest in the success of Flora Growth and our long-term working relationship,” John Aird, CEO of Hoshi, said.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.