Tilray Inc (NASDAQ: TLRY) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced a new agreement that will provide it with a stronger retail footprint. Of course, the news excited investors who are sending the stock on a run for the top. Today, we’ll talk about:
- The agreement;
- what we’re seeing from TLRY stock as a result; and
- what we’ll be watching for ahead.
TLRY Announces Agreement
As mentioned above, Tilray is having an incredibly strong start to the trading session this morning after news broke that the company has entered into an agreement. In a press release issued early this morning, Tilray Canada Ltd., a wholly owned subsidiary of TLRY, announced that it has signed an agreement with Ontario Cannabis Retail Corporation.
Under the terms of the agreement, TLRY will supply the province of Ontario with a diverse array of cannabis products in anticipation of the launch of the adult-use market on October 17, 2018. In the release, the company said that it intends on fulfilling the agreement through its affiliate, High Park Holding, which was formed to produce and distribute a broad-based portfolio of adult use cannabis brands and products. In a statement, Adine Fabiani-Carter, Chief Marketing Officer at High Park, had the following to offer:
We are thrilled to partner with the OCS as a reliable supplier for safe and secure cannabis to Ontario… Our goal is to deliver on the high expectations that Ontarians have of us by cultivating and distributing a portfolio of world-class adult-use brands and products that will lead the market in quality, excellence and craftsmanship.
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 TLRY, the news proved to be overwhelmingly positive. After all, this agreement has the potential to generate a strong amount of revenue. So, it comes as no surprise that excited investors are sending the stock toward the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:09), TLRY is trading at $38.39 per share after a gain of $2.49 per share or 6.94% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
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 agreement and the revenue that it generates. Nonetheless, we’ll continue to watch the news closely and bring it to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!