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Tilray stock surges after exporting cannabis treatment to Australia

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medical marijuanaAn employee checks cannabis plants at a medical marijuana plantation in northern Israel March 21, 2017REUTERS/Nir Elias


Tilray, one of the largest Canadian marijuana companies, said Tuesday that it had successfully shipped a CBD product to Australia for treatment of children with epilepsy at three hospitals in Victoria. CBD is one of the nonpsychoactive compounds found in cannabis.

The company’s stock surged 17% following the announcement, breaking a three-day losing streak for the $8.7 billion company.

It’s the second round of medical cannabis exporting by Tilray to the Australian state under the government’s “compassionate access” scheme, which first treated 29 critically-ill patients in March 2017. The patients were the first in Victoria to legally access marijuana-derived medicines.

Similar export announcements by Tilray last week — involving treatment of Essential Tremor (ET) in California — also sparked a rally in shares, before falling 53% from their September 19 high of more than $119 apiece. Wall Street remains concerned abut stretched valuations following the stock’s more than 500% surge since its July initial public offering, giving it an average price target of $62 — implying a possible drop of 57%.

One prominent short-seller, Andrew Left of Citron Research, compared the rally in cannabis names to the cryptocurrency craze of early 2018: “These stock prices are equivalent to bitcoin mania – although it is even more  ridiculous than bitcoin,” he said on September 12, when Tilray shares were trading even lower than where they were on Tuesday.

Tilray stock price CBD marijuana cannabis weedMarkets Insider

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