Cannabis cultivation company Tilray, a Canadian company with a focus on medical marijuana announced on Thursday the completion of its Series A funding, raising CAD$60 million to amplify their global reach in marijuana distribution. It is a bold move designed to allow the little-known company a chance to play on marijuana’s big stage.
Last summer, Tilray invested CAD$30 million in breaking ground on a new production facility in Enniskillen, Ontario. It is one of the largest production facilities in Canada. At the time, the company projected output of over 100,000 kg over the next few years. But this new investment is expected to help the company surpass those numbers.
Currently, Tilray produces and distributes about 15,000kg of medical marijuana to consumers in eight countries around the world. With this first round of funding, Tilray hopes to produce more than 76,000 kg by the end of 2018. That kind of production rate would put them in ranks with the likes of Aurora Cannabis Inc. (TSX:ACB) and Canopy Growth Inc. (TSX:WEED) as one of the top licensed cannabis producers in Canada.
Tilray’s Eye For Expansion
Tilray is at the forefront of the cannabis distribution market. They were among the first cannabis suppliers to legally import medical marijuana into the European Union in 2016, and just last spring they expanded their reach into the South American and Australian markets.
Tilray rang in the new year nailing down a supply agreement with Shoppers Drug Mart, one of Canada’s largest pharmacies.
Distributing across eight countries already, Tilray has been aggressively seeking to build operational facilities that can meet the demand of their customers since 2016. With three strategic facilities coming into play in Europe and Canada, CEO Brendan Kennedy hopes to position Tilray as one of world’s most recognizable and trusted medical cannabis providers.
The move by Tilray comes ahead of this summer’s proposed legalization of adult-use marijuana in Canada, although the chances of actual implementation are looking slimmer by the minute. This new investment will not only go towards the company’s Canadian facilities; they intend to invest some of it into their new European campus as well.
Expanding Tilray’s production capability is the company’s answer to the growing demand for medical marijuana around the world. “This investment will enable us to serve the rapidly expanding global market for quality-controlled, rigorously tested cannabis products,” Kennedy said in a statement last summer.
Tilray is wholly-owned and funded by Privateer Holdings, a private equity firm investing exclusively in the cannabis sector. This funding marks the first time funding from outside investors has come directly into Privateer Holdings’ portfolio.
“With support from some of the world’s leading institutional investors, we will expand our production capacity in North America and Europe, and scale distribution of our products to more patients and more pharmacies in more countries,” said company CEO Brendan Kennedy in a statement about the deal.