3. Tilray Brands, Inc. (NASDAQ:TLRY)
Number of Hedge Fund Holders: 14
Tilray Brands, Inc. (NASDAQ:TLRY) boasts the number one cannabis market share in Canada, the leading market share by revenue in Germany, and it also distributes medical cannabis in 20 countries around the world.
In Tilray’s Q3 of 2024, which ended February 29th, the company reported revenue of $188.3 million, around 30% more than a year earlier. However, analysts were expecting a revenue $198.3 million, as the company has benefited from a boost in earnings due to recent acquisitions. The company also significantly reduced its loss to just $82.1 million compared to a massive $1.2 billion a year ago. A cheap pot stock to buy now, TLRY was held by 14 hedge funds at the end of Q1 2024, with a collective stake value of over $14.7 million.
Irwin Simon, the chairman and CEO of Tilray Brands, stated the following in the company’s Q3 2024 earnings call transcript:
“In the U.S., Tilray has multiple options and, in particular, is well positioned to benefit from the federal legalization of medical cannabis as a result of rescheduling. Yes, we believe that the rescheduling of cannabis from Schedule I to Schedule III in the U.S. would provide a path for Tilray to sell pharmaceutical-grade medical cannabis in the U.S. subject to doctor prescriptions.”
This is a different strategy from what MSOs are doing today. We believe there’s an opportunity to supply medical cannabis products from our existing operations into the U.S. for medical purposes. Further, in the event of a future federal adult-use and medical cannabis legalization in the U.S., we believe Tilray is well positioned to immediately leverage its strong global leadership position, know-how, and strategic strengths across operations, distribution, and brands to sell THC-infused products across its robust distribution network and sales channels in the U.S.”
As a result of the rescheduling announcement by the US Justice Department on May 16th, Tilray saw its share price move up by 6.3%. A day later, the company announced that it had filed for the sale of up to $250 million worth of its common stock through an at-the-market equity program. Tilray Brands, Inc. (NASDAQ:TLRY) plans to use proceeds from the sale to fund acquisitions or investments, including potential purchases of assets in the U.S. ‘in order to capitalize on expected regulatory advancements or expansion opportunities’.
TLRY has also made significant efforts to diversify and is now the 5th largest craft beer business in the U.S. after it agreed to acquire eight beer and beverage brands from Anheuser-Busch InBev for an undisclosed amount last year. Moreover, earlier this year, Tilray’s Breckenridge Distillery celebrated the wins of World’s Best Finished Bourbon, America’s Best Finished Bourbon, and Icons of Whisky Campaign Innovator of the Year: Highly Commended at the 2024 World Whiskies Awards. So it comes as no surprise that TLRY is also included in our list of the 10 Best Alcohol Stocks to Buy Now.
