Tilray Inc. (TLRY) shares fell 11% before Tuesday, as the ban period after the company's initial public offering (IPO) ended, and the company's executives and other early investors could begin selling their holdings. Privateer Holdings Inc., the majority shareholder, has stated that it does not plan to sell its holdings in the first half of 2019, but other investors are expected to sell their holdings. Meanwhile, Tilray announced that it has reached a cooperation agreement with Authentic Brands Group to develop and market consumer cannabis brands globally. Authentic Brands brands include Vince Camuto, Juicy Couture, and Nine West. As part of this revenue sharing agreement, Tilray will pay $33 million in cash and $66 million in stocks, and possibly up to $250 million in cash and stocks in exchange for 49% of net income from cannabis-related products, with a guaranteed minimum income of up to $10 million per year for a period of 10 years. Tilray's stock price has increased by 31% since 2019, and the S&P 500 index has risen 3.5% over the same period.

-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com

This article was translated from MarketWatch


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