Is US warming up
The anticipation that the US could also legalize cannabis after legalization in Canada is gaining momentum. Amid all these developments, Tilray (TLRY) got entry into the US market.
Move into the US
In September, the US government approved Tilray’s cannabis drug for import for use in clinical trials assessing relief to patients with essential tremors. This clinical trial will take place at the University of California San Diego’s Center for Medical Cannabis Research. Successful initial study results could lead to more research, and the company’s cannabis could eventually become available to patients in the US, where medical marijuana is legal in some states.
While Tilray kept soaring, other stocks failed to keep up. In the above chart, we see that CannTrust (CNTTF) lost about 4.8% from July 19 to December 28 (since Tilray began trading until the most current available price). Aphria (APHA), which has been under pressure lately, lost 24.3% when Tilray returned nearly 342% over the same period.
In the following months, the investor sentiment overall started becoming negative and more towards the cannabis sector (MJ)(HMLSF). Tilray had its best month in September, but the stock kept getting beaten in the following months.
We’ll discuss what happened between September until now in the next part of this series.