Tilray share price: The stock soared nearly 90% intra-day, taking the market capitalisation of the company to as high as $28 billion.
A Canadian cannabis company’s stock is going frenzy on the Wall Street, nearly doubling in value in just three days of trade! Canadian pot producing company Tilray’s stock closed 38% higher in a wild day of trading on Wednesday. The stock soared nearly 90% intra-day, taking the market capitalisation of the company to as high as $28 billion.
Tilray stocks went ablaze on Wednesday, driven by CEO Brendan Kennedy’s bullish comments on the cannabis industry, the CNBC reported. However, traders said a “short squeeze” played a hand in the big gains and wild trading. Trading in the stock was even halted five times due to huge volatility.
Tilray’s stock price has nearly tripled in just one month. Notably, Tilray was the first marijuana company to go public on the Nasdaq in July. From its initial share price at $17, the price of the stock has now soared over a 1000% to $214.06 per piece. Following the huge surge in the stock, Tilray’s market cap now exceeds that of companies like Chipotle and E-Trade.
Another factor that led to the stock’s huge gains on Wednesday was that the company got the approval of the US Drug Enforcement Administration (DEA) to import marijuana to the US for medical research. The company in a statement said it would work with the University of California’s San Diego Center for Medicinal Cannabis Research.
CEO Brendan Kennedy is quite bullish on the cannabis industry just ahead of Canada legalising marijuana in October. Canada will become only the second country after Uruguay to fully legalise marijuana. “All the alcohol companies need to enter this industry. Whether you are an alcohol company or an investor in an alcohol company, this is a global opportunity,” Kennedy told Jim Cramer of CNBC’s Mad Money show.