An appearance on CNBC’s Mad Money has seen Canadian Cannabis producer, Tilray, explode in the stock market — with shares gaining 40 percent, reports Markets Insider.
On Tuesday evening the CEO of Tilray — Brendan Kennedy — spoke to host Jim Cramer about his company’s prospects with regards to Canada’s imminent legalization on October 17, 2018, as previously reported by the Inquisitr. This makes Canada the second nation to legalize the drug, something that Kennedy sees as being just the beginning.
“I think you’ll see the third country within 12 months of October, and that’s where the real opportunity is. It’s not about Canada, it’s about all the countries that follow.”
Tilray’s recent success has seen the value of the company skyrocket, beginning with the news that it was the first company to be granted permission to export marijuana to the United States. The company will begin by supplying a clinical trial for the University of California at San Diego, but could spread further.
In his discussion with Cramer, Kennedy encouraged other industries to explore cannabis, calling it “a great hedge for them.”
That message has certainly been received loud and clear by Coca-Cola, who — as the Inquisitr reported on Monday — is looking into cannabis beverages, further diversifying their reach in the beverage industry. That led to a 15 percent growth for the company Aurora Cannabis, which is in talks with Coca-Cola for the project.
Tilray (a cannabis company w/ $28 million in sales) now has a larger market cap than Best Buy (an electronics retailer w/ $43 billion in sales). pic.twitter.com/6TfoEB1iQ0
— Charlie Bilello (@charliebilello) September 19, 2018
Tilray has gained 800 percent since it went public in July, reflecting the overall growth of the industry — with investors getting especially interested in the sector in August.
Reflecting his wish for the cannabis sector to be involved in more industries, Kennedy has also reached out to the pharmaceutical industry, noting that Tilray has formed an alliance with Swiss pharmaceutical company Novartis.
“Cannabis is a substitute for prescription painkillers, prescription opioids, and so if you’re an investor in a pharmaceutical company, or you’re a pharmaceutical company, you have to hedge the offset from cannabis substitution.”
Canopy Growth started the flurry of investment in the sector when it received a $4 billion investment from Constellation Brands — which is the parent company that owns Corona beer.
Tilray is now trading at $206.44, up over $50 from the start of the day, reaching a high of $237 shortly after Kennedy’s appearance on Cramer’s show.
One notable investor in Tilray has been Peter Thiel, which Bloomberg reports has invested in the company through his Privateer Holdings Inc. — which Thiel established to specifically invest in marijuana businesses. The company, which Privateer Holdings now holds 76 percent of, now has an estimated market value of more than $12 billion.