Marijuana Company Stocks Rally Into Second High After US Approves Pot Importation

Cornelia Mascio
Сентября 23, 2018

"We've got a set dosing, fixed, highly consistent, and so it's really going to help us advance the field much more", Nahab said of the Tilray product, which is a capsule containing a cannabinoid formulation with the active ingredients cannabidiol (CBD) and tetrahydrocannabinol (THC), according to CBC. The company already has an agreement to develop medicinal cannabis with Sandoz, the Canadian division of Novartis AG of Switzerland, and could be a natural fit for pharma "with possible investment from a global player occurring within the next 12 months", he said.

That lit a fire under two other cannabis companies, Cronos and Canopy Growth, which gained 23.1 percent and 5.7 percent, respectively.

While cannabis is legalized in several states for recreational and medical use, it remains a Schedule 1 drug under US federal law. Kennedy, 46, serves as Tilray's chief executive officer.

On August 30, Citron came out with a scathing report on Tilray rival Coronos and the marijuana space in general.

Canadian cannabis stock Tilray has, to put it mildly, been on a unusual trip.

Tilray cultivates, processes and distributes cannabis extracts and dried flower products to patients, doctors and medical researchers around the world, including Britain.

Canopy Growth, which had been the largest cannabis company based on market value until Tilray surpassed it this week, had a market capitalization on Wednesday of $11.28 billion on the Nasdaq at close.

Tilray is investing in production capacity in Portugal so it can supply products to the European Union from within Europe, he said.

"That's where the real opportunity is", Kennedy said.

A move south would also allow Aurora to tap into the pockets of US investors after a string of acquisitions, such as its recently announced agreement to buy Vancouver-based marijuana company ICC Labs Inc. for around $290 million in stock. Last year, Barrick earned more than $8 billion while Tilray's revenue was only at $20 million. Aurora stock, which is listed in Canada, surged. That's also fueling the surge in pot stocks. The move marks Tilray's first clinical trial in the US and supports the company's medical cannabis prospects as it competes with Canopy in an "IP-arms race", Cowen analyst Vivien Azer said in a September 18 note. In the U.S., Aurora shares also trade on the over-the-counter market, which is typically illiquid. About a third of Tilray's float is sold short, according to financial analytics firm S3 Partners.

Prior to Battley's comments, Aurora chief executive officer Terry Booth had mentioned to Bloomberg in March that his company was looking at trading its shares on a US stock exchange.

"The small investors always end up with the short end of the stick", he said.

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