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Has the Trap Sprung for Tilray Inc (NASDAQ:TLRY)?

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While market analysts talk of a “weed bubble”, it might be better understood as a Tilray Inc (NASDAQ:TLRY) bubble. The stock has clearly rewritten the record book as far as valuation standards, perhaps matching up unfavorably with past historic bubbles at this point. The movement has been built of powerfully hyped news stories, a very small float, and a possibly cruel share lock-up. Nonetheless, the company continues to put out headlines that can pass as currency on the internet among those looking for thumbs-ups and reposts by the momentum crowd.

The last such announcement as the company’s release noting that it has received its sales license from Health Canada to sell cannabis under the Access to Cannabis for Medical Purposes Regulations (ACMPR). According to the release, “the license will allow High Park Farms to supply and sell finished cannabis products within the ACMPR as well as sales in anticipation of the launch of the adult-use market in Canada upon its legalization on October 17, 2018.”

Tilray Inc (NASDAQ:TLRY), currently trading at a market capitalization of $12.87B, engages in the research, cultivation, processing, and distribution of medical cannabis.

The next big cannabis story to hit North America is Phoenix Life Science International (PLSI), traded in the US, but with the largest global production based in the tropics and a license to distribute worldwide. Take a look at Phoenix Life Science International PLSI), Its currently trading under $18 dollars per share on the OTC markets. Learn More Now!

The company offers its products in Argentina, Australia, Canada, Chile, Croatia, Cyprus, the Czech Republic, Germany, New Zealand, and South Africa. Tilray, Inc. was incorporated in 2018 and is headquartered in Nanaimo, Canada.

According to the company’s IPO announcement, “Tilray, Inc., a vertically-integrated and federally-licensed cannabis cultivator, processor and distributor, today announced the pricing of its initial public offering of 9,000,000 shares of Class 2 common stock. 6,524,000 shares of Class 2 common stock will be offered in the United States and certain other countries except Canada at a price to the public of US$17.00 per share for a total offering size of US$110,908,000 and 2,476,000 shares of Class 2 common stock, which we refer to as Subordinate Voting Shares, will be offered in Canada and certain other countries except the United States at a price to the public of CAD$22.451 per share for a total offering size of CAD$55,586,200. Based on current exchange rate1, the total combined offering size is approximately US$153,000,000.00.”

One of its key subsidiaries is High Park, which was launched to produce and distribute world-class cannabis brands and products for the Canadian market. Based in Toronto and led by a team with deep experience in cannabis and global consumer brands, High Park has secured the exclusive rights to produce and distribute a broad-based portfolio of cannabis brands and products in Canada, subject to applicable laws and regulations.

In addition, High Park has developed new brands and products for the Canadian market. Upon the coming into force of federal legalization of cannabis for adult-use and corresponding provincial legislation, High Park anticipates fulfilling adult-use supply agreements and purchase orders in Quebec, Ontario, British Columbia, Manitoba, Nova Scotia, Prince Edward Island, Northwest Territories and Yukon on October 17, 2018.

 

Priced In?

As we outlined in our introductory section, the company just announced that it has received its sales license from Health Canada to sell cannabis under the Access to Cannabis for Medical Purposes Regulations (ACMPR).

“This license marks a milestone for High Park as we aim to solidify our position as a leading provider of adult-use cannabis in Canada,” said Adine Carter, Chief Marketing Officer of High Park. “We look forward to supplying provinces and territories with a variety of world-class cannabis brands and products in anticipation of the launch of the adult-use market on October 17, 2018.”

Tilray Inc (NASDAQ:TLRY) has a weak balance sheet, with a total debt-to-equity ratio of 1.55. One should also note that debt has been growing rapidly over recent quarters. TLRY is pulling in trailing 12-month revenues of $28 million, while the company continues to lose money overall.

Nonetheless, this is a high-momentum story, even if it might be wildly overpriced even by cannabis – or tulip circa 1637 – standards.

Pushing the barriers for global distribution, Phoenix Life Science International (PLSI) is the next cannabis play. Just think Canopy x 100, that is how big their plantation in the tropics will be. No lights, no green houses, just maximum growth + minimal cost = home run. Learn More Now!

   

Learn More About PLSI at your brokerage today!

         

Trading Symbol

OTC: PLSI

The Next Big Global Cannabis Trade


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Trading Symbol

OTC: PLSI

The Next Big Global Cannabis Play