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- In compliance with its listing requirements, the Canadian Cannabis company (NASDAQ:TLRY) is preparing for its U.S. expansion in the event of federal legalization of the drug in the country, company CFO, Carl Merton, told The Wall Street Journal.
- “We’re planning the seven, eight steps, moves ahead in the U.S. to build up an infrastructure—brands, production facilities, distribution networks, things like that—for the eventual entry, all without buying a product that puts us off side on our Nasdaq listing,” Merton said.
- The company, listed on Nasdaq, is not allowed to sell cannabis in the U.S. as the drug is federally illegal. However, more and more states are relaxing legal hurdles for its recreational use, raising the hopes of eventual legalization of the drug at the federal level.
“We believe that the U.S. is closer to legalization than it ever has been, but the process will take time,” Merton added.
- Eyeing $4B annual revenue by the end of fiscal 2024, subject to federal legalization of cannabis, Tilray (TLRY) is making acquisitions in the U.S. and restructuring them to comply with regulations.
Its recent acquisition of the majority of outstanding convertible notes of MedMen Enterprises (OTCQB:MMNFF) is a case in point. If the U.S. legalizes marijuana, the deal allows Tilray (TLRY) to build a significant equity position in Los Angeles-based cannabis retailer.
As indicated in the graph below, Tilray (TLRY) shares have underperformed the broader market over the past 30-day period.
