Why Tilray Rose Nearly 300% in 2018
Tilray (TLRY) is a medical cannabis company in Canada that was founded in 2013 but went public in July 2018.
Jan. 2 2019, Published 12:26 p.m. ET
A huge beginning for Tilray
Tilray (TLRY) is a medical cannabis company in Canada that was founded in 2013 but went public with an IPO in July 2018 on the US NASDAQ stock exchange. The stock was priced at $17, but it closed nearly 31% higher on the first day of trading itself. In the following days, the stock continued to rise and it seemed that the sky was the limit. The stock soared to a high of $300 on September 19, 2018. However, the stock’s valuations couldn’t be justified and it kept falling in the following months. It was trading at $75 on December 28.
Why it jumped
Tilray was the first company to go public on the US stock market unlike Canopy Growth (WEED), Aurora Cannabis (ACB), and Cronos (CRON), which were already trading in the Canadian exchanges.
A lot of cannabis investors (MJ) see medical cannabis as the future of the cannabis industry. In an interview on CNBC’s Mad Money, Tilray’s CEO, Brenden Kennedy, stated, “Cannabis is a substitute for prescription painkillers, prescription opioids, and so if you’re an investor in a pharmaceutical company or you’re a pharmaceutical company, you have to hedge the offset from cannabis substitution.” Read Tilray Soars ~60% on September 19—What Drove the Stock Up?