As the largest pot IPO in the U.S. was on deck earlier this year, the Securities and Exchange Commission sought to cut down on Tilray Inc.’s soaring rhetoric and add disclosures about the side effects of weed, according to SEC documents made public this week. Among other changes, the SEC’s comments led the company to pull a letter to shareholders from Chief Executive Brendan Kennedy.
Changes to initial public offering documents at the behest of regulators are nothing new, but the cannabis industry is, and Tilray’s exchange with regulators will give investors an early taste of what to expect in the future as more companies follow in its footsteps. Among the 36 initial comments SEC officials had for Tilray TLRY, +5.15% were requests for increased disclosure around the cannabis company’s complex capital structure as well as the risks associated with operating in the hazy regulatory environment in the U.S. and side effects of the drug.
“As is customary with most IPOs, we had to make a number of changes on the preliminary prospectus based on comments we received from regulators at the SEC,” Tilray spokesman Zack Hutson wrote in an email. [Read More @ Marketwatch]