On Tuesday, August 28th, 2018, Canadian cannabis producer Tilray Inc.‘s (NASDAQ:TLRY) quiet period will be expiring. It just so happens that the company will be reporting second quarter 2018 financials on the very same day, with a conference call to follow.

What is a Quiet Period?

While federal securities laws do not define the term “quiet period,” an IPO quiet period can extend 10-25 days following an IPO. During that period, the federal securities laws limit what information a company and related parties can release to the public. The failure to comply with these restrictions generally is referred to as “gun-jumping.”

According to IPO Candy, “The duration of the quiet period has changed over the years and recently the SEC has shortened it to 10 days. HOWEVER the vast majority of investment banks STILL OBSERVE THE 25 DAY RULE.”

Why Does the End of an IPO Quiet Period Matter?

This is a big deal because oftentimes this is when underwriters of the deal and investment bank analysts usually initiate stock coverage. Also, the company’s management is finally allowed to issue forecasts and more.

Conclusion

Beyond the upcoming earnings announcement and the end of the IPO quiet period, the next date existing and prospective Tilray investors need to know is Tuesday, January 15th, 2019. At that point, the 180-day lockup period expires, which means that the restriction preventing insiders from selling will no longer be in place.