Posted on 08/09/2023 6:57:35 AM PDT by Subcutaneous Fishstick Blues
Tilray Brands is acquiring eight craft brands from Anheuser-Busch InBev in a blockbuster all cash deal announced today.
Tilray – the Canadian cannabis firm that is quickly shedding that standalone image – will acquire the following brands once the deal closes later this year: ...
[Sorry, rest of the article is behind a paywall. Couldn't find this at any other site. But the 8 brands are Shock Top, Breckenridge Brewery, Red Hook, Blue/Point, hi*ball energy, Widmer Brothers, 10 Barrel Brewing and Square Mile Cider.]
It’s corporate raiding.
Buy a corporation, run it into the ground, use declining revenue to get out of contractual obligations, sell the assets for cash.
Well, I’ll skip those eight brands as I don’t fashion supporting the pot industry.
“Tilray – the Canadian cannabis firm “
Tilray Brands is an American company, headquartered at 655 Madison Avenue, 19th Floor, New York, New York, 10065. It does have Canadian, European, and Australian operations and claims to have headquarters in Leamington, Ontario and New York. According to the most recent Form 10K (July 26, 2023) filed with the SEC, the first sentence under the heading “Our Company” states: “Tilray Brands, Inc., a Delaware corporation (collectively, along with its subsidiaries, the “Company”, “Tilray”, “we”, “us” and “our”) . . . The CEO and several directors are Canadian.
The company has reported losses for the past three fiscal years ending May 31. In the most recent fiscal year the company lost $1.443 billion on sales of $627 million. The prior year it lost $434 million. Net loss per share of common stock - $2.35 in the most recent year. The cash flow statement shows the company’s cash position declined $209 million in the most recent fiscal year. The income statement shows a $934 million impairment charge for the year ending May 2023.
The CEO received a base salary of $1.7 million for the past year. He did not receive a performance bonus. His stock option grants were valued at $1.1 million.
Link to the most recent 10K SEC Filing here: https://ir.tilray.com/static-files/068f0345-3a0b-4218-9cbb-23f5f82ece94
Perhaps the company is transitioning the focus of its business from weed to alcohol to improve its financial performance.
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