Finance
Weed stocks: Tilray dethrones Canopy Growth as most valuable marijuana company
Tilray’s explosive growth this week, a 29% through Tuesday, has left the Canadian cannabis producer with a larger market cap than Canopy Growth, which has held the title of largest publicly traded marijuana company.
As of Tuesday’s close, Tilray was worth $14.44 in book value, compared to Canopy Growth’s $10.91, thanks to its more than 800% gain since its July initial public offering.
On Tuesday, Tilray climbed 29% following the news it had been approved as the first cannabis company to export legal weed into the US for a clinical trial to treat essential tremor, or ET, at the University of California at San Diego.
The stock is up another 40% in pre-market trading Wednesday after CEO Brendan Kennedy appeared on CNBC’s “Mad Money” Tuesday evening. He told host told the host Jim Cramer that Canada was just the tip of the iceberg for full legalization when it came to marijuana.
“I think you’ll see the third country within 12 months of October, and that’s where the real opportunity is,” he said. “It’s not about Canada — it’s about all the countries that follow.”
Outside of pharmaceuticals, the cannabis sector’s strength has also come from deals with beverage companies like Constellation Brands, the global behemoth behind Corona that owns a 8.5% stake in Canopy Growth.
“It’s a great hedge for them,” Kennedy told Cramer. “Whether you’re an alcohol or an investor in an alcohol company, this is a global opportunity.”
Canopy Rivers, the venture capital arm of Canopy Growth which takes minority stakes in smaller, private companies, is set to begin trading on the Toronto Stock Exchange on Thursday.
More Markets Insider cannabis coverage:
-
Business6 days ago
Lordstown Motors’ ousted CEO settles with SEC for misleading investors
-
Business5 days ago
Apple sued, Microsoft’s AI ambitions and Nvidia’s surprises
-
Business4 days ago
TechCrunch Mobility: The wheels are starting to come off the Fisker EV bus
-
Entertainment4 days ago
Amazon Big Spring Sale 2024: Shop 350+ deals on Apple, robot vacuums, security cameras, more
-
Business3 days ago
Maju Kuruvilla is out as CEO of one-click checkout company Bolt
-
Entertainment3 days ago
Asus ROG Zephyrus G14 (2024): The MacBook Pro of gaming laptops
-
Entertainment2 days ago
Where’s the AI in these ‘AI-powered’ products for your home?
-
Entertainment6 days ago
Amazon’s Big Spring Sale 2024: Shop 340+ deals on Apple, robot vacuums, security cameras, more