Why the SEC is Mad About the Letter Brendan Kennedy Wrote in the Tilray Prospectus

The United States Securities and Exchange Commission has asked Tilray, Inc. (NASDAQ:TLRY) to adjust a letter to shareholders that Chief Executive Officer Brendan Kennedy wrote in the company’s Form S-1 Registration Statement.

The letter, now public, states:

To Our Stockholders:

We founded Tilray with the goal of becoming the world’s most trusted cannabis company. From our earliest days, we set out to transform how cannabis is produced, distributed and sold around the world. At each step in our journey, we have sought to define, lead and legitimize the global potential of our industry.

Today, we are on the cusp of completing a major milestone by becoming the first federally-licensed cannabis company to complete an initial public offering (IPO) on a major U.S. stock exchange. We believe the capital we raise from the IPO will accelerate our global growth trajectory by allowing us to expand our multinational supply and distribution network to serve more patients in more countries.

Our accomplishments thus far would not have been possible without the foresight of our earliest investors and the contributions of our expert team. Together, we are improving patients’ lives and methodically breaking down barriers to end cannabis prohibition and the harms it causes. With every milestone, we erode the stigma associated with cannabis and raise the standard for cannabis products to a level trusted by doctors, patients and mainstream adult consumers.

We are building a pioneering company at the forefront of a global paradigm shift. Looking ahead, as governments around the world increase access to medical cannabis, and as Canada prepares to legalize and regulate cannabis for responsible adult consumption, we are committed to shaping the future of our industry.

I feel honored to lead Tilray on this incredible journey. I am extremely proud of what our team has accomplished so far and grateful to our visionary investors for their support in helping to get us to where we are today. I am looking forward to what comes next and I hope you will join us.

Sincerely,

Brendan Kennedy

Chief Executive Officer

“Delete the statement that you are improving people’s lives,” SEC officials asked.

According to MarketWatch, “The SEC’s concerns with Kennedy’s letter were, in short, that it was long on promises and rhetoric about the industry’s promising future, but short on the conservative couching that the agency prefers.”

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