Tilray Chairman and CEO, Irwin D. Simon, Sends Shareholder Letter Mapping out $4B Revenue Plan
Reiterates Need for Stockholder Support in Advance of Special Meeting
-- Stockholders Who Support the Plan Should Vote Prior to the Special Stockholders Meeting on
The full text of the letter from
Dear Fellow Tilray Shareholder,
When we announced the “new”
The strong trends towards cannabis legalization and broader consumer reach in our three key markets –
Canada, International and the U.S.– would grow stronger;
- A management team with a track record of building and sustaining value in the CPG wellness space was well positioned to help grow a new leader in the cannabis sector; and
A combination of well-defined organic growth initiatives combined with acquisitions and partnerships would afford us a unique opportunity to expand our business globally and grow into the unquestioned industry leader, with
$4Bin revenue by the end of our fiscal year 2024.
I want to be clear: our conviction in both the opportunity and our ability to execute on these key growth plans has never been stronger. But our ability to do so rests on the support of our shareholders, from whom we have been seeking support to get important proposals passed. Proposal 1, in particular, would authorize
We have approximately 49% of our stock voting in favor – but that is not enough! We need to hit 50.1%. There are no shortcuts.
Why does it matter? As last week’s milestone transaction with
The industry’s broadest geographic footprint and operational scale -
Tilraynow possesses the geographic footprint and operational scale to emerge as a consolidator in the global cannabis market.
Leadership position in
Canada, with a complete portfolio of product offerings and carefully curated brands - We plan to grow and strengthen our position as the #1 Canadian LPin total sales on a consolidated basis. This is the foundation that will be so essential to getting us from our current combined retail market share in Canadaof 16% to our goal of 30% share by fiscal year 2024.
Tremendous international growth opportunities from a strong base - The
European Union, where we already have a very meaningful presence, represents a powerful growth market, and could be a $1 billionbusiness for us in medical use alone. We will also be ready for adult-use legalization when the time comes. Our presence in the EU also allows us to grow our brands globally from a base of 600 million people in the EU (nearly twice the population of the U.S.).
U.S.CPG platform to be immediately leveraged for cannabis products upon federal legalization - In the U.S., we already have a strong consumer packaged goods presence and infrastructure with two strategic pillars, SweetWater, the 11th largest craft brewer in the nation and leading lifestyle brand, and Manitoba Harvest, a pioneer in branded hemp, CBD and wellness products, with access to 17,000 stores in North America. Together, they are already $100-plus million businesses and quite profitable – but still have enormous potential.
Accretive acquisitions and other growth opportunities - The investment we recently made in the outstanding senior secured convertible notes of MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF), is a critical step towards delivering on our objective as we work to enable
Tilrayto lead the U.S. market when legalization allows. MedMenis a premier American cannabis retailer and one of the most recognized brands in the $80 billion U.S.cannabis market with 21 cannabis licenses across key states.
Please continue to support
Our plan is to continue to lead this industry, by growing larger and faster than our competitors. We need your help to grow. Please vote.
HELP TILRAY GROW!
VOTE “FOR” TODAY!
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Certain statements in this communication that are not historical facts constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things, the need for an increase in authorized shares of common stock from 743,333,333 shares to 990,000,000 shares and the potential negative impacts to the Company if the corresponding proposal is not approved; the Company’s ability to become the world's leading cannabis-focused consumer branded company with
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