Tilray, Inc. (NASDAQ: TLRY)
Tilray, the company that sells medical premium cannabis products directly to patients via their telephone and online orders, has signed a supply agreement with the Supreme Cannabis Company for dried cannabis.
Under the terms of the deal, the Supreme Cannabis Company through its wholly owned subsidiary, 7ACRES, will supply dried cannabis to a subsidiary of Tilray called Tilray Canada Ltd.
The initial supply agreement is valued at more than 1.52 million American dollars, or $2 million Canadian dollars. Tilray said it plans to use the dried cannabis to support its Canadian medical marijuana patients.
Supreme Cannabis chief executive officer John Fowler said, “We are pleased to enter into this agreement with Tilray. As one of Canada’s first licensed producers, Tilray has been an industry leader in patient s ervices and quality assurance. We believe this agreement demonstrates the quality of the 7ACRES dried flower, and the infrastructure, management and systems that support our brand positioning.”
TLRY stock soared as much as 13% in the morning hours of trading on Monday, after the agreement was made public. The stock closed the day at $84.50, with a gain of $6.61, or 8.49%, as Canada-listed shares in Supreme Cannabis recorded a gain of 11.61% to close $1.73. Tilray maintained its positive momentum in premarket trading on Tuesday, going up $2.99 or 3.54%, to trade at $87.49 as of 8:05 a.m. EDT in New York.
Tilray stock and those of other pot-listed companies, such as Canopy Growth and Cronos Group have been on a run for the top in recent weeks as investors prepare for the nationwide marijuana legalization in Canada on Oct. 17. Investors of these companies have every reason to be excited as the country opens up the recreational cannabis market.
The global consumer spending on marijuana products is expected to hit $32 billion by 2022 from its current levels, according to a report published by Arcview Market Research and BDS last month. That figure could go up to $272 billion by 2028, if the other G7 countries follow Canada’s footsteps.
The bullish run in Tilray and its rivals is also believed to be triggered by speculation that key companies in the beer and tobacco industries are seeking a share of the marijuana market. Investors remain optimistic that major beer and tobacco companies will step in to acquire or partner with small pot companies to take on the highly promising cannabis market.
Tilray, Inc. Company Profile
Tilray is a global pioneer in the research, cultivation, production and distribution of medical cannabis and cannabinoids. Tilray was the first licensed producer of medical cannabis in the world to have its facility Good Manufacturing Practices (GMP) certified in accordance with European Medicine Agency (EMA) standards.
The company currently serves tens of thousands of patients, physicians, pharmacies, governments, hospitals, and researchers in eight countries spanning four continents through its affiliated entities in Australia and New Zealand (Tilray Australia New Zealand Pty Ltd), Canada (Tilray Canada Ltd), Germany (Tilray Deutschland GmbH), and Portugal (Tilray Portugal Unipessoal Lda). –Tillray