It’s-high-times-for-soaring-marijuana-stocks-on-Wall-Street

Laverne Higgins
September 21, 2018

The share price was boosted by bullish comments from its chief executive and news that America's drugs regulator would allow the company to export a cannabis-based drug to the United States.

Tilray's wild stock market ride underlines the enormous potential investors see in the burgeoning marijuana sector - and of the volatility in the segment.

Tilray completed its initial public offering in July with its shares priced at US$17 per share. Tilray jumped 29 per cent Tuesday and 38 per cent Wednesday, and it's dropped 19 per cent Thursday.

The surge in stock price comes after the USA -based Drug Enforcement Agency approved it to ship marijuana to the US for medical research.

In August, Molson Coors said it will team up with Hydropothecary Corp.to sell marijuana-infused drinks, and Canopy Growth announced a $4 billion investment from Constellation Brands, the company that makes Corona beer.

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The company's valuation briefly topped US$20 billion, making it larger than some more mainstream stocks including American Airlines and Clorox.

While cannabis is legalized in several states for recreational and medical use, it remains a Schedule 1 drug under US federal law.

The drastic swings in the stock follow a almost 30 per cent jump on Tuesday after the Nanaimo, B.C. - based firm announced it got the green light from the U.S. Drug Enforcement Administration to export cannabis in capsule form to a researcher at a university in the U.S., where the drug is still illegal at the federal level.

Recreational marijuana will become legal across Canada on October 17, and consumable forms of the drug will be legal in 2019.

Other analysts say the gains are just too much, too fast.

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