Tilray Inc., Canadian marijuana producer and processor, will IPO on Thursday, June 19. At a price range of $14 to $16 per share, the company plans to raise up to $144 million and has an expected market cap of ~$1.4 billion. At the midpoint of its price range, TLRY currently earns an unattractive rating.

Tilray looks to capitalize on growing support for the legalization of marijuana usage. 30 states in the U.S. have some form of legal marijuana and Canada recently approveda bill to legalize recreational usage, which would make it the first Group of Seven nation to legalize cannabis. Is Tilray’s IPO coming at the perfect time, or are the expectations baked into the stock price already too optimistic?

This report aims to help investors sort through Tilray’s financial filings to understand the fundamentals and valuation of this IPO.

GAAP Net Income Hides Growing Losses

TLRY earns revenues by through selling finished cannabis products direct to consumers and through pharmaceutical distributors. The company notes it harvested 6,779 kilos of cannabis in 2017, which is up from 4,526 kilos in 2016. [Read more at Forbes]