Some of the biggest winners on Tuesday happened to come from the cannabis sector. Chief among them was the Nasdaq-listed Tilray (NASDAQ: TLRY), whose shares shot up more than 40% after announcing a major U.K. medical cannabis distribution agreement.
The deal in question would let Tilray provide medical cannabis variants to patients that have a valid prescription, either through a private doctor or via the public healthcare system.
“This partnership with Grow Pharma provides patients in need access to a sustained supply of GMP-certified, high-quality medical cannabis and is an important step in improving access in the UK,” said Tilray CEO Brendan Kennedy. “Tilray will continue to advocate for reasonable patient access to medical cannabis in Europe and countries around the world.”
Nor is this the first foray into the European market. Tilray announced back in January that it would begin supplying medical cannabis to French government health agencies for testing. This partnership with the French government is expected to last between 18-24 months, with Tilray possibly securing another agreement once that initial term expires.
Back in December, Tilray also announced it would be merging with Canadian cannabis producer Aphria (NYSE: APHA) to create what would be the world’s largest cannabis company by market cap. Since then, investors have eagerly anticipated an official date for the merger, which is expected to take place sometime in Q2 2021.
Shares of Tilray ended up shooting up around 40% over the course of the day. Other cannabis companies, however, also shot up as well by virtue of being in the same industry, a common trend we see among pot stocks. Shares of Canopy Growth (NYSE: CGC), for instance, shot up around 11.9% this morning, although that’s also because Canopy reported its fourth-quarter financial results on Tuesday as well.
Other big cannabis winners include OrganiGram Holdings (NYSE: OGI), Sundial Growers (NASDAQ: SNDL), and Aphria, which are up 32.2%, 28.5%, and 24.5%, respectively.
At the same time, the general optimism surrounding the new Biden administration, as well as the likely legalization of cannabis in America, is helping push up pot stocks in general. Considering that many top Democrats vowed to legalize cannabis in 2021 should they take office, many pot stock enthusiasts are speculating that full-blown legalization could take place within the next few months, if not sooner.
At the same time, it wouldn’t be surprising if former GameStop (NYSE: GME) traders, burnt out over recent losses, are looking for new hot stocks to try and push up. As such, companies on the move, such as Tilray, are likely to jump a bit more thanks to this fresh influx of new traders looking to score big once more.
Tilray Company Profile
Tilray, headquartered in Nanaimo, Canada, cultivates and sells medical and recreational cannabis through a portfolio of brands that include Canaca, Dubon, and Manitoba Harvest. The bulk of Tilray’s sales are in Canada, but the company also sells CBD Products in the U.S. and exports medical cannabis globally from its production facilities in Canada and Portugal. Tilray also has a partnership with AB InBev to develop cannabis-infused drinks. – Warrior Trading News