Tilray Brands (NASDAQ:TLRY) shares are down on Monday following the company’s acquisition of BrewDog’s global craft brand assets.
This strategic move is expected to generate around $200 million in annual net revenue, adding pressure as broader markets edged lower.
• What’s pressuring TLRY stock?
Tilray on Monday said it completed the acquisition for 33 million pounds (around $44.11 million), which includes BrewDog’s U.K. brewing operations and eleven strategic brewpubs.
The company anticipates this acquisition will significantly enhance its beverage portfolio, projecting its global consolidated net revenue to reach approximately $1.2 billion on an annualized basis.
In addition, Tilray’s Chairman and CEO Irwin Simon emphasized the potential for growth in the U.K. and international markets, stating that the acquisition positions Tilray to capitalize on BrewDog’s established brand and distribution networks.
“With the BrewDog acquisition, our total global beverage platform is expected to grow to ~$500 million in annual revenue, creating one of the largest diversified craft beverage platforms globally,” Simon further commented on Monday.
This strategic expansion aims to refocus BrewDog on craft beer excellence while driving profitable growth.
Technical Analysis
Currently, the stock is trading 9.8% below its 20-day simple moving average (SMA) and 4.1% below its 100-day SMA, indicating a bearish trend in the short term.
Shares have decreased over the past 12 months and are currently positioned closer to their 52-week lows than highs, reflecting ongoing challenges.
The RSI is at 44.45, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold. Meanwhile, MACD is not available for analysis, limiting insights into momentum.
The combination of neutral RSI and the absence of MACD data suggests mixed momentum for the stock, indicating that traders should remain cautious.
- Key Resistance: $8
- Key Support: $6.50
TLRY Price Action: Tilray Brands shares were trading 4.32% lower at $7.53 at the time of publication on Monday, according to Benzinga Pro data.
Photo: Shutterstock
