Marijuana News Today: Tilray Stock Soars After Scoring Major U.S. Agreement

Tilray is sending the cannabinoid formulation south in capsule form for the trial, with both cannabidiol and THC being tested at the UC San Diego lab.

“Tilray is proud to support this crucial research,” said Dr. Catherine Jacobson, Director of Clinical Research at Tilray Inc. “If this study can identify cannabinoids as a potential treatment for patients suffering from essential tremor, we can conduct further research and potentially provide alternative effective methods of relief for the high numbers of patients with ET.” (Source: Ibid.)

The drugs are being examined to treat essential tremor (ET), a neurological movement disorder. At this time, 0.4% of the population suffers from ET, while that number increases to 4.6%–6.3% among seniors.

What This Means for Marijuana Stocks

It’s an unsettling bit of irony that anyone who works in the marijuana industry or has smoked marijuana ever may be denied at the Canadian border, while the state actively allows the testing of pot at its state universities.

That dissonance aside, this is fantastic news for marijuana stocks, as evidenced by the surge in TLRY stock (more on that below).

But overall, this represents another shift in the U.S. toward marijuana acceptance on a federal level.

Legalization is almost universally preceded by a relaxation of the laws governing medicinal marijuana. With that in mind, the DEA approving clinical cannabis tests shows them leaning toward a more positive position on pot that at least allows for some clinical testing.

For decades, marijuana growth at a legal, clinical testing level was restricted to a single lab that was notorious for weak yields and weaker stock. But now that more companies are being allowed to send down cannabis to the U.S., not only will this likely expedite the research process, but it will also serve as yet another measuring stick by which to judge pot stocks.

Those that are able to nab deals in the U.S.—any type of deal—are, naturally, going to see a commensurate boost in share value. And that’s exactly what we’re seeing in the marijuana news today.

TLRY Stock

In what is becoming a consistent lede for many of our pot stock market sections, Tilray stock is up big yet again.

The company surged by nearly 15% in early-morning trading as news broke of the company’s deal with the U.S. to export cannabis products south for testing.

This news comes in conjunction with TLRY stock’s overall amazing performance in the past few weeks, seeing massive gains nearly every day of the past 10, usually jumping near or about 10% each morning.

It’s safe to say that no other marijuana stock has managed to capture headlines like Tilray stock in recent weeks. The first ever company to have an initial public offering (IPO) on the Nasdaq has proven that it’s more than just an IPO boost that’s driving the success of the company. Having scored numerous deals has also helped propel the stock, alongside an overall bullish sentiment that has taken firm hold of the industry.

With news of The Coca-Cola Co searching for an investment partner in the industry, TLRY stock is uniquely suited to take advantage due to its presence on the Nasdaq, which will only continue to benefit the stock.

CRON Stock

The other marijuana stock on the Nasdaq, Cronos Group Inc (NASDAQ:CRON), has not fared poorly either this morning, up about 10% in early morning trading. This follows the company’s announcement of a new brand of marijuana products in Canada.

But really, much of the growth is being pushed by the bullish sentiment in the industry. Between Tilray’s deal and the Coca-Cola rumors, there’s a ton of goodwill circulating through the industry that is, as the saying goes, serving as the rising tide.

CRON stock also benefits from being the only other pure-play marijuana stock on the Nasdaq, helping mark it as a strong target for investment among U.S. investors.

TLRY & CRON Stock Performances

On the chart below are the recent performances of the stocks for Tilray Inc (black line) and Cronos Group Inc (blue line):

Chart courtesy of StockCharts.com

Analyst Take

The industry is surging in the marijuana news today, and that makes sense. Having scored two major stock-boosting headlines in a single day is no small feat, and that’s paying off for pot stockholders.

Tilray, as usual, is surging, although this time its name alone is tied to a major event, while the potential Coca-Cola deal floats around, edging prices higher.

Both news pieces will likely serve to drive further gains this week.