Tilray-Privateer Reverse Merger Hit With Delaware Challenge

The CEO and board of Canadian cannabis company Tilray Inc. were hit with a Delaware lawsuit challenging the restructuring that made it the parent company of Privateer Evolution LLC, the private equity firm that took it public.

The derivative suit also targets Privateer, which was known as Privateer Holdings Inc. before the “reverse downstream merger” inverted its relationship with former subsidiary Tilray. The partly redacted Chancery Court complaint was made public Wednesday after being filed under seal Feb. 27 by two Tilray shareholders.

Tilray CEO Brendan Kennedy, Privateer’s executive chairman, used the deal to take control of the “growth-oriented” cannabis ...