Tilray Inc (NASDAQ: TLRY) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced in a press release that it has entered into a supply agreement. Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The supply agreement;
- what we’re seeing from TLRY stock as a result; and
- what we’ll be watching for ahead.
TLRY Heads Up On Supply Agreement
As mentioned above, Tilray is having an incredibly strong start to the trading session this morning after announcing that it has entered into a supply agreement. In a press release issued early this morning, the company said that it has entered into an agreement with The Supreme Cannabis Company.
Under the terms of the agreement, Supreme Cannabis’ wholly owned subsidiary, 7ACRES, will supply dried cannabis to Tilray Canada Ltd., a subsidiary of TLRY. Initially, the value of the agreement is estimated to be more than $2 million. The company also said that the agreement surrounds cannabis that will be largely used to support the medical cannabis market in Canada, where the company has a robust patient population. In a statement, John Fowler, CEO at Supreme Cannabis, had the following to offer about the agreement with TLRY:
We are pleased to enter into this agreement with Tilray. As one of Canada’s first licensed producers, Tilray has been an industry leader in patient services and quality assurance. We believe this agreement demonstrates the quality of the 7ACRES dried flower, and the infrastructure, management and systems that support our brand positioning.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Tilray, the news proved to be positive. With the new supply agreement, the company will have a larger supply of cannabis as we head for legalization of the drug on a recreational level in Canada in October. So, it comes as no surprise to see that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:32), TLRY is trading at $83.40 per share after a gain of $5.51 per share or 7.07% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TLRY. In particular, we’re interested in following the story surrounding the comapny’s continued work to expand its reach in Canada and around the world. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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