What happened
Canadian marijuana grower Tilray‘s (NASDAQ: TLRY) The stock has surged in 2021. Even before today’s surge, stocks are more than 530% higher since January 1. Shares are up again on Wednesday, up 38% as of 10:20 a.m. EST.
So what
Investors are again optimistic that the underlying company finally has a visible path to prosperity. Shares initially rose in October 2018 after Canada legalized recreational marijuana. Even with the recent outrageous gains, stocks are still 60% below those exuberant highs.
Yesterday, the company announced a new UK distribution agreement to go along with other recently announced European expansions. But today’s outsized move could also be related to another trading frenzy on Reddit.
Image Source: Getty Images.
What now
Yesterday, Tilray announced a new distribution agreement with 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 “enables Tilray to provide authorized UK patients in need with a locally maintained supply of medicinal cannabis solutions,” the company said in a statement.
The announcement follows several others over the past two weeks that Tilray has been approved to supply certified medical cannabis in France and Portugal, and has started shipping medical cannabis to Spain.
There may be retailers on Reddit helping to move stocks today. But Tilray will soon merge with his fellow Canadian grower Aphria (NASDAQ: APHA) to create one of the largest cannabis companies in the world. Investors are jumping in the hope that legalization in the US will also create a runway for future growth.