What happened
Canadian Marijuana Planter Tilrayin (NASDAQ: TLRY) stocks soared in 2021. Even before today’s hike, stocks are more than 530% higher since January 1. The stock jumped again on Wednesday, up 38% from 10:20 am EST.
And
Investors are returning to optimism that the underlying business finally has a visible path to prosperity. Shares initially skyrocketed in October 2018, after Canada legalized recreational marijuana. Even with recent exaggerated gains, stocks are still 60% below those exuberant highs.
Yesterday, the company announced a new distribution agreement in the UK to accompany other recently announced European expansions. But today’s oversized move may also have to do with another Reddit trading frenzy.
Image source: Getty Images.
What now
Yesterday, Tilray announced a new distribution agreement with the UK medical cannabis distributor, Grow Pharma. Under the agreement, Tilray’s pharmaceutical-grade medical cannabis products will be imported and distributed by Grow Pharma in the UK. The company expects to have an internationally certified product available to patients next month. The agreement “allows Tilray to provide authorized patients in the UK with a locally maintained supply of medical cannabis solutions,” the company said in a statement.
The announcement follows several others in the past two weeks that Tilray has been approved to supply certified medical cannabis in France and Portugal, and that it has started shipping medical cannabis to Spain.
There may be retail traders on Reddit helping to move stocks today. But Tilray will soon be merging with another Canadian producer Aphria (NASDAQ: APHA) to create one of the largest cannabis companies in the world. Investors are jumping in the hope that US legalization will also create a clue for future growth.