#BlackLivesMatter: A Message from Our CEO

#BlackLivesMatter: A Message from Our CEO

Transparency on this issue is critical. For this reason, we are sharing the same message our CEO shared with our employees, with you.

Tilray Team,

Like many of you, I am appalled and heartbroken by the devastating murders of George Floyd, Breonna Taylor, Ahmaud Arbery – as well too many others whose lives have been tragically and unjustly taken over the course of our history.  I am encouraged to see that the #BlackLivesMatter movement has rightfully taken over our newsfeeds, cities and conversations. I have spent much time thinking about the right way for Tilray to participate in this important conversation. While I don’t have the definitive answer, I believe sharing my personal beliefs with you is a good place to start:

• I acknowledge my privilege as a white male and the opportunities it has afforded me that are not available to many people who experience the pain of racism on a daily basis.

• I believe we have a responsibility to stand in solidarity with everyone speaking out against racism and the social injustice experienced by people of color across North America.

• I support honest conversations and peaceful demonstrations. I am hopeful that this movement will lead to long overdue reform to our institutions that were built on inherently racist foundations. If any of you need to take time away from work this week to participate in demonstrations or simply reflect, please notify your supervisor. We will support you.

• I will continue to work towards righting the wrongs of cannabis prohibition that has been particularly harmful to people of color.

• I will continue to seek out diverse voices for positions of leadership within our organization and champion diversity and inclusion at all levels. We need to do better at Tilray and the cannabis industry as a whole.

• I promise to listen, learn and make space for the important voices speaking now.

When we started Privateer Holdings in 2010 and eventually Tilray in 2014, our core purpose was built on the thesis of ending cannabis prohibition and the harms it causes, understanding that prohibition has been disproportionately harmful to people of color more than any other group. In 2018, myself and the other founders of Privateer pledged $5M to support communities that have been harmed by cannabis prohibition.  In 2020, I also pledged $1M to New Approach PAC which has been instrumental in statewide cannabis legalization and reform and has legalized cannabis via 13 successful ballot measures. Thus far this year, I have funded $500,000 of that commitment.  

I am not so naïve as to believe that ending cannabis prohibition will solve the problem of racial injustice, but I do strongly believe that cannabis legalization is a small step towards promoting justice. It is an important cause for which I have spent the last ten years of my life fighting: step by step, state by state, and country by country around the world.

Social justice remains core to our Corporate Social Responsibility strategy at Tilray. As a company, we have supported organizations such as John Howard Society and Defy Ventures that are working to balance some the injustices caused by cannabis prohibition. We remain committed to supporting initiatives like these now and for the long-term.  

We have decided to mute most of our social channels for the remainder of the week, to make space for the valuable and authentic voices that need to be heard. I’ve also donated to Drug Policy Alliance and Minority Cannabis Business Association, on behalf of Tilray, in support of the work they’re doing to benefit the Black Lives Matter movement.  

I recognize there is so much more to do as an organization. I know that these gestures are meaningless without action and long-term commitment. I will hold our leadership team accountable for these values. And I want you to do the same. Progress won’t be instant and we may not always get it right. But we can do better and we will do better.

Best,

Brendan

Tilray® Receives Complete GMP Certification at EU Campus

Tilray® Receives Complete GMP Certification at EU Campus

Licensing expands company’s international export capacity to serve authorized medical cannabis markets

Provides authorization to complete medical cannabis extraction on-site and the production of bulk extracts to manufacture medical cannabis oil as a finished product

Certification signals another milestone for EU campus as Tilray’s international medical cannabis hub

NANAIMO, B.C. – Tilray, Inc. (“Tilray” or the “Company”) (NASDAQ: TLRY), a global pioneer in cannabis research, cultivation, production and distribution, today announced its wholly-owned subsidiary Tilray Portugal, Unipessoal Lda. (“Tilray Portugal”) has received a Good Manufacturing Practice (GMP) certification in accordance with European Union standards, for its manufacturing facility in Cantanhede, Portugal. The GMP certification was issued by Infarmed, the Portuguese National Authority of Medicines and Health Products which provides end-to-end GMP certification for Tilray’s current operations in Portugal.

This is the third GMP certification for Tilray Portugal, which allows the facility to manufacture medical cannabis extracts in-house and export GMP-produced finished medical cannabis products, both dried flower and oil, from Portugal throughout European Union and other international markets with legal medical cannabis regulations. Further, the additional certification authorizes Tilray to manufacture bulk extracts on-site to sell as cannabis API (active pharmaceutical ingredients) and provides additional quality control lab capacity to further advance the Company’s ability for product innovation and research.

“This is an important milestone for our strategic growth in the international medical cannabis market,” says Sascha Mielcarek, Tilray’s Managing Director in Europe. “Our third GMP certification will enable us to manufacture more products at our facility and export a greater range of medical products to international patients, partners and markets. As demand increases around the world and more legal medical cannabis markets emerge, Tilray’s EU campus is ready to serve more partners and patients across the EU and other inte

Tilray has announced the previous license issuances, GMP certifications, and exports:

·       Initial licensing and GMP Certification:  In May 2019, Tilray Portugal received its first manufacturing license and initial GMP-certification, allowing the company to manufacture and export bulk dried medical cannabis and wholesale dried cannabis as active substances used as starting materials.

·       Initial Export:  In September 2019, Tilray completed its first export to Germany from its EU campus in Portugal which was one of the largest inter European bulk shipment of medical cannabis to date.  Thus far, Tilray has supplied medical cannabis products to Germany and Israel from its EU campus in Portugal.  

·       Second GMP Certification:  In December 2019, Tilray Portugal received an additional GMP-certification which allowed Tilray to supply international markets with pharmaceutical-grade dried flower and oils as finished medical cannabis products.

Tilray has established sales and distribution arrangements to supply medical cannabis through major pharmaceutical distribution channels throughout Germany and other European markets. These arrangements allow patients in need to access Tilray’s finished medical cannabis products.

Tilray® Announces Optimization Plan for Adult-Use Facilities in Canada

Tilray® Announces Optimization Plan for Adult-Use Facilities in Canada

Company to close High Park Gardens, licensed cannabis greenhouse located in Leamington, Ontario

Facility closure expected to yield $7.5 million in annualized net savings as part of global cost-efficiency and restructuring measures to achieve profitability and grow revenues

High Park Farms and High Park London remain core to Company’s growth strategy in the adult-use market in Canada

NANAIMO, B.C. – Tilray, Inc. (“Tilray” or “the Company”) (NASDAQ: TLRY), a global pioneer in cannabis research, cultivation, production and distribution, today announced its wholly-owned subsidiary High Park Gardens (“Natura Naturals Inc.”) will close its doors over the course of the next six weeks. As a result of the closure, the Company expects to realize annualized net savings of approximately $7.5 million (current production costs net of future 3rd party purchases and ongoing depreciation) and avoid significant ongoing capital expenditures.

In 2019, Tilray acquired Natura Naturals Inc., which has since operated as High Park Gardens. The High Park Gardens facility contains 406,000 square feet of Health Canada licensed space for cannabis cultivation and manufacturing. High Park Gardens has worked collaboratively with Tilray’s existing operational sites to primarily serve the adult-use market in Canada.

“We are continuously evaluating the evolving needs of our business, against a challenging industry backdrop, to ensure we’re in the best position to produce world-class products and deliver positive results for our stakeholders,” says Brendan Kennedy, Tilray CEO. “The decision to close a facility is never easy but we are confident that this will immediately put Tilray in a better position to achieve our goals of driving revenues across our core businesses and working towards positive adjusted EBITDA by the end of 2020. We are very confident our existing operations team will continue to serve our valued patients and customers with no interruption. On behalf of myself, the rest of our executive team and our colleagues across the organization, I’d like to extend my sincere gratitude to the team at High Park Gardens for their contributions to Tilray and High Park.”

In April 2018, the Company began operating High Park Farms Ltd. (“High Park Farms”), a cultivation and processing facility located in Enniskillen, Ontario. The facility holds Health Canada cultivation, processing and sales licenses. In April 2018, High Park also began building out High Park Holdings Ltd. (“High Park London”), located in London, Ontario, which is a Health Canada licensed processing, manufacturing and R&D space that produces the bulk of High Park’s “Cannabis 2.0” adult-use products including vapes, edibles and beverages. The Company will continue to utilize its existing facilities in Ontario to serve the adult-use market in Canada and leverage the large footprint to collaborate with Tilray Nanaimo and Tilray Portugal to serve the international medical market as needed.

High Park and its affiliates are currently serving Canadian consumers with a broad portfolio of adult-use brands and products.

Tilray, Inc. Reports First Quarter 2020 Financial Results

Tilray, Inc. Reports First Quarter 2020 Financial Results

Quarterly Revenue Increased 126% to $52.1 Million (C$70.7 Million) Compared to the First Quarter of 2019 and 11% Sequentially from the Fourth Quarter of 2019

International Medical Cannabis Sales Exceeded Canada Medical Sales by 43% in the Quarter 

Implemented Cost Reductions Designed to Achieve Approximately $40 Million Annualized Savings 

Reduced Net Loss by $35 Million, or 16%, Compared to the Fourth Quarter of 2019

Implemented COVID-19 Related Protocols to Ensure the Health of Our Global Workforce and Satisfy Patient and Consumer Needs

Focused on Achieving Positive Adjusted EBITDA by End of the Fourth Quarter of 2020

NANAIMO, BRITISH COLUMBIA – Tilray, Inc. (“Tilray” or the “Company”) (Nasdaq: TLRY), a global pioneer in cannabis research, cultivation, production and distribution, reports financial results for the first quarter ended March 31, 2020. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.

“We are pleased to report strong sequential quarterly revenue growth across each of our core business segments for the first quarter of 2020,” says Brendan Kennedy, Tilray’s Chief Executive Officer. “We remain focused on executing on our long-term growth opportunities and our goal of generating positive Adjusted EBITDA by the end of the fourth quarter. As evidenced by our International Medical sales in the quarter, we expect this segment to demonstrate continued growth and positively impact margins. During and since the first quarter, we took significant steps to drive efficiencies across our business, enabling us to realize annualized cost savings of approximately $40 million compared to fourth quarter 2019 run rates. While the positive impact of these actions are not fully reflected in this quarter’s results, they will become more clearly evident over the course of this year.”

First Quarter 2020 Financial Highlights

·      Revenue increased 126.2% to $52.1 million (C$70.7 million), compared to the first quarter of last year. Growth was driven by cannabis sales, which experienced meaningful increases across all channels with the exception of bulk, and the inclusion of the Manitoba Harvest acquisition for a full quarter in 2020 compared to a partial quarter in the prior year.

·      Revenue increased 11.0% compared to the fourth quarter of 2019. Growth was driven by a 23.0% increase in adult-use sales and a 14.3% increase in hemp product sales, partially offset by a decline in bulk sales.

·      Total cannabis kilogram equivalents sold increased 92.4% to 5,794 kilograms from 3,012 kilograms in the first quarter of 2019. This growth resulted from increases in adult-use cannabis flower sales and the launch of Cannabis 2.0 products.

·      Average cannabis net selling price per gram decreased to $5.28 (C$7.16) compared to $5.60 (C$7.54) in the first quarter of 2019. The decrease was due to a shift in product and channel mix. The average net selling price excluding excise duties for adult-use was $3.49 (C$4.73) per gram for the first quarter of 2020.

·      Gross margin for the quarter was 21%, a 200 basis point decrease compared to the first quarter of 2019 and a significant positive change over the negative margins recorded in the fourth quarter of 2019. Gross margin, excluding inventory valuation adjustments, increased to 29% from 28% compared to the first quarter of 2019 and 24% in the fourth quarter of 2019. Gross margin for cannabis, excluding inventory valuation adjustments, decreased to 20% from 23% compared to the first quarter of 2019 while gross margin for hemp, excluding inventory valuation adjustments, decreased to 41% from 44% compared to the first quarter of 2019.

·      Net loss was $184.1 million, or $1.73 per share, compared to a loss of $29.4 million, or $0.31 per share, for the first quarter of 2019. The increase in net loss was primarily due to the change in the fair value of the warrant liability of $72.0 million related to the Company’s registered offering of common stock and warrants, impairment of assets of $29.8 million, weakening of the Canadian dollar resulting in a foreign currency translation loss of $28.1 million, increased operating expenses related to growth initiatives in the Company’s cannabis sector and severance costs of $1.9 million related to headcount reductions.

·      Net loss was reduced by $35.0 million, or 16%, compared to the fourth quarter of 2019. The reduction in net loss from $219.1 million, or $2.14 per share, in the fourth quarter of 2019 was largely due to improvements in gross margin in the first quarter of 2020 and the significant impairments recorded in the fourth quarter of 2019.

·      Adjusted EBITDA was a loss of $19.7 million compared to a loss of $15.3 million in the first quarter of 2019. The moderate increase in Adjusted EBITDA loss was largely the result of increased costs in general and administrative expenses related to commercial growth initiatives and increased operating costs related to our cultivation efforts.

·      Adjusted EBITDA loss of $19.7 million was a 44% improvement over the $35.3 loss during fourth quarter of 2019. The improvement was generally due to cost reductions and operating efficiencies.

·      The Company ended the first quarter of 2020 with $174.0 million in cash.

First Quarter 2020 Business Highlights

·      Tilray made several additions to its executive leadership team:

o   Jon Levin, formerly of Revlon, joined the Company as Chief Operating Officer.

o   Michael Kruteck, formerly of Molson Coors and Pharmaca, joined the Company as Chief Financial Officer.

·      In January 2020, the Company signed a 2.5 tonne strategic partnership agreement with Canndoc (an Israeli Medical Cannabis Agency) to export medical cannabis from Tilray’s European Union facility in Portugal to Israel. The successful export addresses growing demand for medical cannabis products in the Israeli market.

·      On February 28, 2020, the Company closed a $59.6 million senior credit facility that bears interest at Canadian prime plus 8% and has a two year term.

·      On March 17, 2020, the Company closed an underwritten registered offering of common stock, pre-funded warrants and warrants. Net proceeds from this offering were approximately $85.3 million after deducting underwriting discounts and offering expenses.

·      On March 25, 2020, Tilray’s Board of Directors unanimously approved the pro rata release of 11 million shares of Class 2 common stock held by the former stockholders of Privateer Holdings, Inc. The released shares are part of the previously announced release of Tilray stock over a two-year period.

Update Related to COVID-19

During the COVID-19 pandemic, the Company’s priority remains the health, safety and well-being of its global workforce, patients, customers and communities where it operates. Over the course of several weeks, the Company enacted response protocols and contingency plans to prepare for events in relation to the global pandemic. The Company has implemented remote work arrangements for all office personnel and restricted business travel as of mid-March. The Company’s operational sites remain open, but with enhanced measures to protect the safety of its workforce including rotating shifts of self-quarantined staff, reducing the sites to business-critical personnel only, physical distancing incorporated into manufacturing lines and cultivations sites, sanitation protocols and other enhanced safety measures. These protocols are being evaluated and adapted in accordance with government and health authority recommendations on a daily basis.

Currently, the Company is focused on establishing a safe recovery plan for returning to more normal business conditions and returning staff to corporate offices and operational sites when appropriate.

To date, the Company has not experienced any material COVID-19 impacts related to its ability to serve patients and consumers around the world with medical cannabis products, adult-use cannabis products in Canada, and Manitoba Harvest hemp products. For more information on COVID-19 and associated risks to our business, see Item 1A, “Risk Factors” in our Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on May 11, 2020. 

Conference Call

The Company will host a conference call today, May 11, 2020, to discuss these results at 5:00 p.m. ET. Investors interested in participating in the live call can dial 877-489-6528 from the U.S. and 629-228-0736 internationally. A telephone replay will be available approximately two hours after the call concludes through Tuesday, May 26, 2020, by dialing 855-859-2056 from the U.S., or 404-537-3406 from international locations, and entering confirmation code 7890876.

There will also be a simultaneous, live webcast available on the Investors section of the Company’s website at www.tilray.com. The webcast will be archived for 30 days.

Tilray, Inc. Releases 11 Million Shares from Lock-Up Agreement

Tilray, Inc. Releases 11 Million Shares from Lock-Up Agreement

NANAIMO, B.C – Tilray, Inc. (NASDAQ: TLRY) (“Tilray”), a global pioneer in cannabis production, research, cultivation and distribution, today announced that the Board of Directors of Tilray unanimously approved the pro rata release of 11 million shares of Class 2 common stock held by the former equity holders of Privateer Holdings, Inc. (“Privateer”).  

The shares are being released from lock-up agreements entered into in under the Agreement and Plan of Merger and Reorganization, dated September 9, 2019, by and among Tilray, Privateer, Down River Merger Sub, LLC, a Delaware limited liability company and wholly owned subsidiary of Tilray, and Michael Blue, as the Stockholder Representative. The waiver and release will take effect on April 3, 2020, and the released shares may be sold on or after that date, subject to applicable securities law or contractual limitations.

A previously announced agreement between Tilray and Privateer required that each Privateer equity holder who received the shares of Tilray stock or options to purchase Tilray stock in the merger were subject to a lock-up allowing for the sale of such shares only under certain circumstances over a two-year period beginning December 12, 2020. During the first year following the closing of the merger, shares will be released only pursuant to certain offerings or sales arranged by and at the discretion of Tilray. The pro rata release will be treated as a “permitted sale” under the lock-up agreements, waiving the release requirements with respect to such shares included in the lock-up agreement.

“The shares to be released on April 3, 2020 are part of the previously announced release of Tilray stock over a two-year period,” said Michael Kruteck, Tilray’s Chief Financial Officer. “We believe the staggered release of locked-up shares, as well as strategic and marketed offerings, will manage our public float in an orderly fashion.”

The waiver and release announced today will apply on a pro rata basis to each former Privateer equity holder who received shares of or options to purchase Tilray Class 2 common stock in the merger, including certain Tilray officers and directors.

The waiver and release of the 11 million shares represents approximately 14.5% of the locked-up shares (including for purposes of this percentage calculation shares that remain subject to escrow and/or subject to outstanding assumed stock options). 

Tilray, Inc. Announces Pricing of its $90.4 Million Registered Offering

Tilray, Inc. Announces Pricing of its $90.4 Million Registered Offering

MARCH 13, 2020 8:00 AM

NANAIMO, BRITISH COLUMBIA, March 13, 2020 - Tilray, Inc. (“Tilray” or the “Company”) (Nasdaq: TLRY), a global pioneer in cannabis production, research, cultivation and distribution, announced today that it has priced an underwritten registered offering of 7,250,000 shares of its Class 2 common stock and, in lieu of Class 2 common stock, pre-funded warrants to purchase 11,750,000 shares of Class 2 common stock, and accompanying warrants to purchase 19,000,000 shares of its Class 2 common stock (or, for investors who so choose, pre-funded warrants to purchase shares of Class 2 common stock) at a price to the public of $4.76 per share and accompanying warrant (or $4.7599 per pre-funded warrant and accompanying warrant). Tilray’s gross proceeds from this offering are expected to be approximately $90.4 million, before deducting underwriting discounts and estimated offering expenses. All of the securities in the offering are being sold by Tilray. The warrants will be exercisable beginning six months after issuance at a price of $5.95 per share of Class 2 common stock and have a term of five years commencing on the date of exercisability. The offering is expected to close on March 17, 2020, subject to customary closing conditions.  

The Company intends to use the net proceeds from the offering for general corporate purposes.

Canaccord Genuity LLC is acting as sole book-running manager for the offering.

The offering is being made only by means of a prospectus supplement and an accompanying prospectus filed as part of an automatically effective shelf registration statement filed with the Securities and Exchange Commission (the “SEC”) on Form S- 3 on September 11, 2019. The prospectus supplement and accompanying prospectus for the offering will be filed with the SEC and will be available on the SEC’s website, www.sec.gov. Copies of the prospectus supplement and accompanying prospectus, when available, may also be obtained from Canaccord Genuity LLC Attention: Syndicate Department, 99 High Street, 12th Floor, Boston, Massachusetts 02110, or by telephone at (617) 371-3900 or by e-mail at prospectus@cgf.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Tilray, Inc. Reports Fourth Quarter and Full Fiscal Year 2019 Financial Results

Tilray, Inc. Reports Fourth Quarter and Full Fiscal Year 2019 Financial Results

Revenue Increased 287% to $167.0 (C$217.4) Million in Full Fiscal Year 2019 Compared to the Prior Year

Adult-Use Revenue Increased Over Three-Fold in the Fourth Quarter Compared to the Prior Year Period; 7% Sequential Quarterly Revenue Growth

Signed and Closed $60 Million Senior Credit Facility

NANAIMO, BRITISH COLUMBIA – Tilray, Inc. (“Tilray” or the “Company”) (Nasdaq: TLRY), a global pioneer in cannabis production, research, cultivation and distribution, reports financial results for the fourth quarter and full fiscal year ended December 31, 2019. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.

“Our full year results demonstrate strong sales growth momentum, which we expect to continue in 2020,” said Brendan Kennedy, Tilray’s Chief Executive Officer. “Like our peers, we have faced industry challenges, but we remain committed to driving long-term value for our shareholders. Tilray has a diversified business model comprised of global medical, Canada adult-use and hemp products which positions us well in the current volatile market environment. We are still in the early days of this emerging growth industry and will continue being good stewards of shareholder capital as we aim to build the world’s most trusted and valued cannabis and hemp company.”

2019 Financial Highlights

• Revenue increased to $167.0 (C$217.4) million, up 287.2% compared to last year. The increase in revenue was driven by significant growth in sales for the Canadian adult-use market, international medical markets as well as the acquisition of Manitoba Harvest.

• Total cannabis kilogram equivalents sold increased over 446% to 35,380 kilograms from 6,478 kilograms in the prior year.

• Average cannabis net selling price per gram (excluding bulk sales) increased to $7.90 (C$10.28) compared to $6.63 (C$8.63) in the prior year.

• Net loss for the year was $321.2 million, or $3.20 per share, compared to $67.7 million, or $0.82 per share, for 2018. In 2019, the Company recorded non-cash charges of $112.1 million related to impairment of the Authentic Brands Group LLC (“ABG”) agreement as well as $68.6 million in inventory reserves. Adjusted EBITDA was a loss of $89.8 million compared to a loss of $28.3 million the prior year.

Fourth Quarter 2019 Financial Highlights

• Revenue increased 202.2% to $46.9 million (C$61.0 million), compared to the fourth quarter of last year, driven by the Canadian adult-use market, the Manitoba Harvest acquisition, and growth in international medical markets. The Company recorded reserves of $4.2 million related to discounts and returns. 

• Total cannabis kilogram equivalents sold increased over seven-fold to 15,039 kilograms from 2,053 kilograms in the prior year period.

• Average cannabis net selling price per gram (excluding bulk sales) increased to $8.78 (C$11.43) compared to $7.52 (C$9.79) in the prior year period. The average net selling price excluding excise taxes for adult-use was $3.19 (C$4.16) per gram for the fourth quarter of 2019. The increase was due to a shift in product and channel mix.

• Gross margin, excluding non-cash return and inventory reserves, decreased sequentially to 29% from 31% in the prior quarter and increased compared to the fourth quarter of 2018 gross margin of 20%. Including non-cash charges, gross margin in the fourth quarter of 2019 was negative 120%.

• Net loss for the quarter was $219.1 million or $2.14 per share compared to a loss of $31.0 million or $0.33 per share for the prior year period. Adjusted EBITDA was a loss of $35.3 million compared to a loss of $13.3 million in the prior year period. The increased net loss and Adjusted EBITDA declines were primarily due to increases in operating expenses related to growth initiatives, expansion of international teams, and the addition of Manitoba Harvest and Natura Naturals businesses.

Senior Credit Facility

The Company closed a $60 million senior credit facility on February 28, 2020 that bears interest at prime plus 8% and has a two year term. The Company ended 2019 with $97 million in cash.

2019 Business Highlights  

Canadian adult-use brand portfolio expansion:

• High Park™, a subsidiary of Tilray, launched the second phase of its adult-use product portfolio including vape, edible and beverage products, across Canada where regulations allow.  New brand and product additions include:  

• Canaca – pure cannabis oil, all-in-one vape pens and cartridges;

• Marley Natural – pure cannabis oil vape cartridges;

• Chowie Wowie – cannabis-infused chocolates and gummies in THC and CBD varieties;

• Everie – non-alcoholic, CBD-infused ready-to-brew teas and sparkling beverages with all natural flavors. Everie is the debut brand for Fluent, Tilray’s joint venture with AB InBev, facilitated through High Park and Labatt Breweries of Canada.

Addition of Hemp products business:

• Tilray completed its acquisition of Manitoba Harvest. The Company now has hemp products available in over 17,000 retail doors and 20 countries around the world. 

Key international market developments:

• Tilray Portugal received two Good Manufacturing Practice (GMP) certifications in accordance with European Union standards, for its manufacturing facility in Cantanhede, Portugal. These certifications permit the Company to manufacture and export GMP-certified bulk and finished medical cannabis products, including dried flower and oils, from Portugal to Germany and other European and international markets with legal medical cannabis regulations.  Tilray remains the only licensed producer to be GMP certified in two countries, Canada and Portugal.

• Successfully resupplied a bulk amount of medical cannabis in the U.K. and exported medical cannabis to Ireland.

• Successfully exported medical cannabis to Germany and Israel from Portugal, and to Switzerland from Germany. In total, Tilray’s medical cannabis products have been made available in 15 countries on 5 continents across the world.

Executive leadership team expansion:

• Jon Levin, formerly of Revlon, joined the Company as Chief Operating Officer.

• Michael Kruteck, formerly of Molson Coors and Pharmaca, joined the Company as Chief Financial Officer.  Mark Castaneda, the Company’s Chief Financial Officer, will transition to a strategic business development role after the 10-K has been filed for the fiscal year ended December 31, 2019.

• Katy Dickson, formerly of Mattel and General Mills, joined the Company as President of Manitoba Harvest.

Clinical research developments:

• Imported medical cannabis into the United States from Canada for a new clinical trial evaluating the efficacy of medical cannabis as a treatment for taxane-induced peripheral neuropathy (TIPN) secondary to treatment with paclitaxel or docetaxel. TIPN affects more than 67% of women undergoing breast cancer treatment.

• Announced support for additional global clinical trials; studying the efficacy of medical cannabis as treatment in reducing severe behavioral problems in children with intellectual disabilities; and another trial examining the safety, tolerability and effectiveness of medical cannabis on immune activation in people living with HIV.

• Tilray closed its merger with Privateer Holdings, Inc. in December.

Tilray® Expands Global Leadership Team with New COO and CFO

Tilray® Expands Global Leadership Team with New COO and CFO

Former Revlon executive, Jon Levin, joins as Chief Operating Officer and former Molson Coors and Pharmaca executive, Michael Kruteck joins as Chief Financial Officer

Current Tilray CFO, Mark Castaneda, to stay on in strategic business development role

NANAIMO, B.C – Tilray, Inc. (NASDAQ: TLRY), a global pioneer in cannabis production, research, cultivation, and distribution, announces the expansion of its global senior leadership team with two strategic hires: Jon Levin as Chief Operating Officer, who was formerly with Revlon, and Michael Kruteck as Chief Financial Officer, who was formerly with Molson Coors and Pharmaca. Mr. Kruteck’s appointment will be effective immediately after filing the Annual Report on Form 10-K for the year ended December 31, 2019. Mark Castaneda, Tilray’s current CFO, will take on the role of Strategic Business Development and continue to advise the company and assist in Kruteck’s transition.

“We are thrilled to have these experienced leaders join our team as we continue to disrupt the global pharmaceutical, alcohol, CPG and functional food and beverage industries,” said Brendan Kennedy, Tilray CEO. “Jon and Michael come to Tilray with extensive expertise in their respective fields and we look forward to their contributions as we pioneer the future of cannabis and hemp around the world.  As CFO, Mark has led the company through its IPO and substantial growth in the past couple years and we thank him as he transitions to a new strategic role with the company.”

Levin, COO, joins Tilray from Revlon where he most recently was General Manager, U.S. Mass Markets, responsible for the consumer products sold through major retailers in the United States. With 25 years of experience, Levin has general management knowledge in diverse industries including beauty and health, CPG and sporting goods. Prior to Revlon, he was the Executive Vice President, Sales, for Ferrara Candy Company, and had senior sales leadership positions with Nautilus, Wrigley and Acosta. Levin has a B.S. in Economics from Portland State University and a degree in Executive Management from Cornell University.

Kruteck, CFO, served multiple senior financial roles at Molson Coors Beverage Company and most recently as CFO for Pharmaca Integrative Pharmacy. With over 30 years of experience, Kruteck possesses a broad finance background with specific experience in financial and operational transformations, supply chain, corporate finance, and financial planning and analysis. Michael received his MBA from the Garvin School of International Management (Thunderbird) and his B.A. from the University of Colorado at Boulder.

Tilray’s current CFO, Mark Castaneda, who joined the company in March 2018, will take on the role of Strategic Business Development focusing on strategic initiatives for Tilray while also supporting Kruteck through the transition.

Tilray, Inc. Completes Merger with Privateer Holdings, Inc.

Tilray, Inc. Completes Merger with Privateer Holdings, Inc.

NANAIMO, BRITISH COLUMBIA – Tilray, Inc. (“Tilray” or the “Company”) (Nasdaq: TLRY), a global pioneer in cannabis research, cultivation, production and distribution, today announced that the merger with Privateer Holdings, Inc. (“Privateer”), closed on December 12, 2019.

Mark Castaneda, Chief Financial Officer of Tilray, said: “We appreciate the long-term confidence that Privateer has in the Tilray business and we look forward to having their investors as part of our stockholder base. We believe this transaction will give Tilray greater control and operating flexibility, while allowing us to effectively manage our public float.”

Pursuant to the merger, all of Privateer’s capital stock outstanding immediately prior to the effective time of the merger (excluding certain shares) were cancelled and automatically converted solely into the right to receive the applicable portion of an aggregate shares of Tilray Class 2 common stock and shares of Tilray Class 1 common stock (inclusive of shares of Tilray Class 2 common stock held in escrow for contingent release to Privateer’s stockholders) issuable as consideration in merger. Tilray did not pay any cash consideration in connection with the merger.

As previously disclosed, each Privateer equity holder who received the shares of Tilray stock in the merger is subject to a lock-up allowing for the sale of such shares only under certain circumstances over a two-year period. During the first year following the closing of the merger, shares will be released only pursuant to certain offerings or sales arranged by and at the discretion of Tilray. At the end of the first year, to the extent not already released at Tilray’s discretion as a result of the aforementioned offerings or sales, 50 percent of the total shares subject to the lock-up will be released. Over the course of the second year following closing, the remaining shares will be subject to a staggered release in four equal quarterly increments.