You can buy pot on the stock market now! Sort of, anyway, since the Canadian madical marijuana company Tilray became the pure cannabis company listed on NASDAQ stock exchange.
Tilray offered 9 million shares of its Class 2 common stock, which kicked off trading Thursday morning at $23.05 per share under the symbol "TLRY." The company said in an SEC filing in advance of the offering that it was looking to sell stock between $14 and $16 per share, which valued Tilray between about $1.3 billion and $1.5 billion. The IPO priced at $17 a share late Wednesday.
Tilray grows and processes cannabis in both Canada and Portugal that it sells it through distribution channels to make it products available in 10 countries on five continents. Its an impressive opteration - a little more than your local weed dealer!
There are actually quiet a few cannabis producers on the US stock exchanges, including Canopy & Chronos. Tilray is the first listing to focus purely on cannabis production.
What do all the cannabis companies on the US echanges have in common? They are international companies, not US companies. Why would that be?
Stock exchanges have stringent requirements for companies looking to list, including restrictions on those that have broken federal law. That means companies based in countries where marijuana is legalized like Canada may meet listing requirements in America, while their U.S.-based counterparts cannot.
So, US cannabis companies can list on the Canadian exchanges (with appropriate disclaimers) and Canadian companies can list on US exchanges, but US companies can't list on US exchanges... makes sense to me...