Tilray Inc (NASDAQ: TLRY) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced yet another supply agreement in preparation for the coming recreational cannabis market in Canada. Of course, the news excited investors, sending the stock screaming 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 Announces Supply Agreement
As mentioned above, Tilray is having an incredibly strong start to the trading session this morning after the company announced yet another supply agreement. In a press release issued early this morning, The Supreme Cannabis Company announced that its wholly owned subsidiary, 7 ACRES, has entered into a supply agreement to provide dry cannabis to Tilray Canada, a subsidiary of TLRY.
The agreement will last twelve months and encompases a total of approximatelly $12 million in dried cannabis. The dried cannabis provided under this agreement will support medical cannabis patients in Canada, helping Tilray keep medical supplies up while recreational markets become available.
In a statement, John Fowler, President of The Supreme Cannabis Company, had the following to offer with regard to the agreement with TLRY:
We are excited to be entering into this agreement with Tilray, an organization – like Supreme Cannabis – that focuses on the end user and demands leading quality assurance standards… Tilray has built an industry-leading global medical distribution platform, which has resulted in robust demand for high quality cannabis products. We are happy to provide 7ACRES premium products alongside Tilray’s well-regarded and existing lineup to support medical patients around the world.
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. After all, this supply agreement will ensure that the company has plenty of product available to tackle both the medical and recreational cannabis markets in Canada. So, it comes as no surprise that excited investors are sending the stock up in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:35), TLRY is trading at $112.50 per share after a gain of $4.62 per share or 4.28% 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 company as the Canadian recreational cannabis market becomes active. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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