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
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?