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Tilray, High Tide not afraid of Trump’s tariffs

Published on April 18, 2025 by Pat Bulmer

Photo: Contributed

Canadian-American cannabis and beverage giant Tilray isn’t afraid of Donald Trump’s tariffs.

Tilray said in a recent financial statement that an analysis shows tariffs will have no effect on its businesses.

“In the United States, Tilray’s American beverage brands are solely manufactured and distributed within the U.S. market. In Canada, Tilray’s cannabis brands are produced domestically for Canadian consumers. In Europe, Tilray manufactures medical cannabis brands and products for distribution across Europe and Australia. Tilray’s wellness business, Manitoba Harvest is currently exempt from the new tariffs.”

In the quarterly statement, Tilray reported many of its financial numbers were down slightly compared to the same quarter a year ago.

Canada’s High Tide has issued a similar response to Trump’s tariffs.

“In light of the recently announced tariff actions by the United States, we want to reassure our investors that the vast majority of our revenue is generated from products procured and sold within Canada. As such, we do not anticipate any material impact on our business stemming from these measures. That said, we are actively monitoring the situation,” said CEO Raj Grover in a news release.

Tilray’s cannabis net revenue was $54.3 million in the third quarter compared to $63.4 million in the prior year quarter, the company said. The all-important EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter was $9.0 million compared to $10.2 million a year ago.

“The strategic initiative to redirect product from Canada to international markets resulted in a timing impact on revenue of $3.2 million,” the report said. “Additionally, a strategic decision to pause our presence in … categories, such as vapes and infused pre-rolls, led to a revenue decrease of $4.0 million,” but prevented further losses, the company said.

High Tide announced the opening of its 195th Canna Cabana store in Kitchener, Ont., but said store expansion could be slowed if circumstances change.

““While we continue to see long-term value in our measured bricks-and-mortar expansion, we are also mindful of the importance of maximizing free cash flow in today’s uncertain climate. If needed, we are prepared to temporarily moderate our pace of organic store openings to protect our balance sheet,” said Grover.

No hostile takeovers allowed

Calgary-based High Tide is also adopting a shareholder rights plan.

“The Shareholder Rights Plan has not been adopted in response to, or in anticipation of, any known or anticipated take-over bid,” the company insists in a news release.

But that’s exactly what such plans are for, writes law firm Borden Ladner Gervais.

“One of the most commonly used defensive tactics that Canadian boards of directors have used to prevent or fight a  hostile bid is a shareholders rights plan. A key purpose of a rights plan is to provide the target board with time to consider alternatives to the hostile bid.”

High Tide says the purpose of its three-year plan is “to ensure that all shareholders are treated fairly in connection with any offer to acquire the outstanding common shares of the company and that the board has the opportunity to identify, solicit, develop and negotiate value-enhancing alternatives to any unsolicited take-over bid.”

Recently, rival SNDL bought 5.4% of High Tide’s shares.

Shareholders must approve the plan.