Tilray Inc (NASDAQ: TLRY) has been flying high. After Canada announced that it would be the second nation to legalize adult-use cannabis, the grower of the green stuff created supply agreements to bring its products to more than 77% of its target audience. However, due to new developments in the United States, this audience may become substantially smaller, leading to concerns and sending the stock tumbling. Today, we’ll talk about:
- The new developments;
- what we’re seeing from TLRY stock as a result; and
- what we’ll be watching for ahead.
Canadian Pot Smokers And Workers May Have A Hard Time Crossing The Border
Unfortunately, Tilray is having an overwhelmingly rough day in the market today as US law makers weigh in on Canada’s plans of becoming the second country to legalize cannabis. Recently, news broke that Canadian cannabis users and workers will be treated like criminals at US borders, leading to fear and sending TLRY and its competitors tumbling.
The news came from the US Customs and Border Protection agency. The agency said that it will continue to apply long-standing federal laws and regulations surrounding marijuana. As a result, the substance is still banned and any participants in the industry will be consider drug trafficers in the United States.
As you could imagine, drug trafficers are not allowed to cross US borders. So, the target audience for TLRY, marijuana users, will be treated as criminals at the United States border.
While no one knows just what effect this will have on the Canadian cannabis industry, investors are bracing for the worst, sending TLRY and various other cannabis stocks targeting the Canadian market down.
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, and the rest of the Canadian cannabis sector, the news proved to be overwhelmingly negative. After all, with the audience their products are made for being limited at borders, some question just how much that audience will shrink. So, it comes as no surprise that upset investors are sending the stock tumbling in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the movement. At the moment (8:30), TLRY is trading at $101.40 per share after a loss of $18.36 per share or 15.33% 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 company’s continued work to tackle the cannabis markets both 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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