Mr. Irwin Simon reports
TILRAY CHAIRMAN AND CEO, IRWIN D. SIMON, SENDS SHAREHOLDER LETTER MAPPING OUT $4B REVENUE PLAN
Tilray Inc. has issued an open letter to shareholders from Irwin D. Simon, chairman and chief executive officer. The letter details Mr. Simon's strategic vision and $4-billion revenue plan for the company and encourages
shareholders to vote for initiatives in support of that vision and plan at Tilray's special meeting of shareholders, which is scheduled to be held on Sept. 10, 2021.
The full text of the letter from Mr. Simon is provided herein.
Dear fellow Tilray shareholders,
When we announced the new Tilray in December of last year, we were optimistic that we had the strategy, resources and leadership to create the world's leading cannabis-focused consumer brands company. Together, we made a bold bet that:
The strong trends toward cannabis legalization and broader consumer reach in our three key markets -- Canada, international and the United States -- would grow stronger.
A management team with a record of building and sustaining value in the CPG (consumer packaged goods) wellness space was well positioned to help grow a new leader in the cannabis sector.
- 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 $4-billion in revenue by the end of fiscal 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 Tilray to issue additional shares to execute on attractive acquisitions and other growth avenues in our M&A (mergers and acquisitions) program. We need a majority of all the shares issued and outstanding to vote in favour of proposal 1 in order for it to pass.
We have approximately 49 per cent of our stock voting in favour -- but that is not enough. We need to hit 50.1 per cent. There are no shortcuts.
Why does it matter? As last week's milestone transaction with MedMen Enterprises Inc. highlights, having the flexibility and resources to execute on our core growth vectors (legalization, outstanding execution and organic/inorganic growth) is absolutely essential. Only then will our five key competitive differentiators drive lasting and material shareholder value. These differentiators include:
The industry's broadest geographic footprint and operational scale -- Tilray now 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 No. 1 Canadian licensed producer in 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 Canada of 16 per cent to our goal of 30 per cent by fiscal 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-billion business for us in medical use alone. We will also be ready for adult-use legalization when the time comes. Our presence in the European Union also allows us to grow our brands globally from a base of 600 million people in the European Union (nearly twice the population of the United States).
A leading U.S. consumer packaged goods platform to be immediately leveraged for cannabis products upon federal legalization -- In the United States, we already have a strong consumer packaged goods presence and infrastructure with two strategic pillars: (i) SweetWater, the 11th-largest craft brewer in the nation and a leading lifestyle brand; and (ii) Manitoba Harvest, a pioneer in branded hemp, cannabidiol and wellness products, with access to 17,000 stores in North America. Together, they are already $100-million-plus 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 is a critical step toward delivering on our objective as we work to enable Tilray to lead the U.S. market when legalization allows. MedMen is a premier U.S. cannabis retailer and one of the most recognized brands in the $80-billion U.S. cannabis market, with 21 cannabis licences across key states.
Please continue to support Tilray and your investment in the company by voting today on the vital shareholder proposals. You should have received ballots by mail or e-mail. If you have not, or cannot find a ballot, please call our proxy solicitor and let the proxy solicitor help you. The proxy solicitor can be reached at 833-497-7395 (toll-free) in the United States and Canada or 203-658-9400 elsewhere, or by e-mail at TLRY@info.morrowsodali.com.
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.
Irwin D. Simon, chairman and chief executive officer
Tilray notes that major independent proxy advisory firms ISS and Glass Lewis have encouraged their investor clients to vote
all proposals at the upcoming special meeting of shareholders.
About Tilray Inc.
Tilray is a leading global cannabis lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia and Latin America. Tilray is changing the lives of people for the better -- one person at a time -- by providing products that meet the needs of mind, body and soul, and invoke a sense of well-being. Tilray's mission is to be the trusted partner for its patients and consumers by providing them with a cultivated experience and health/well-being through high-quality, differentiated brands and innovative products. A pioneer in cannabis research, cultivation and distribution, Tilray's unprecedented production platform supports greater than 20 brands in greater than 20 countries, including: comprehensive cannabis offerings; hemp-based foods; and alcoholic beverages.
We seek Safe Harbor.
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