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IPO marijuana shares Tilray (TLRY) and other marijuana stocks continued their meteoric rise on Wednesday after the Canadian potato producer's CEO envisioned a massive industry that would shake the alcoholic and pharmaceutical landscape. Tilray shares climbed up to 94% intra-day to 300, but then gave up almost all of those gains. The actions were interrupted for the fourth time.
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Brendan Kennedy, CEO of Tilray, told CNBC 's Jim Cramer Tuesday night that the medical cannabis market could reach 100 billion dollars worldwide in the next few years. He also said that drug and alcohol companies – which increasingly weigh on the recreational and medical pot potential – should join forces with cannabis rather than try to fight it. Earlier Tuesday, Tilray said he had received permission to send a medical cannabis product to the United States for a clinical trial.
"If you look at the big pharmaceutical companies, they have to protect themselves," he said. "Cannabis is a substitute for prescription painkillers, prescription opioids, and if you're an investor in a pharmaceutical company, or if you're a pharmaceutical company, you have to protect yourself against cannabis substitution."
With respect to alcohol, he said that "all" liquor companies must enter the marijuana industry. "I think it's a good cover for them, whether you're an alcohol company or an investor in an alcohol company."
Tilray already has a partnership with a division of Novartis (NVS), and received regulatory approval from the United States on Tuesday to import a medical cannabis product.
At the same time, as more and more veterans of the alcohol industry turned to the cannabis industry, he said Tilray would rather fly solo than create a partnership.
"Our intention is to create a company that dominates part of this $ 150 billion sector, I think you will see multiple companies worth $ 100 billion, we do not want to partner with ABI," he said. declared. Anheuser-Busch InBev (BUD). "We want to build ABI."
AB InBev, when he arrived last week, said in an email that he "was closely following the trends of legalization in the cannabis industry."
"There are still many unknowns about the long-term commercial and societal impacts of legalizing marijuana," the company said. "We hope that the public health community and policymakers are carefully examining this issue so that marijuana is appropriately regulated where it is legal."
Marijuana stocks again
Tilray climbed 8.6% to 186.33 late in the afternoon on the stock market. The actions were interrupted for the fourth time during the session. Tilray's stock has reached $ 300 a day.
Of the other marijuana stocks, Cronos Group (CGC) grew by 3%, but was well above the peaks. Canopy growth (CGC) reversed to retreat 9%.
The value of Tilray, since it became in July the first public market marijuana IPO to have occurred in a major US stock exchange, has climbed since its IPO to 17%. Marijuana is outlawed and can live up to evaluations.
The broker Citron Research said in a tweet Wednesday that the significant gains of Tilray were "beyond understanding". The firm said it had a short position in the stock and "will hold a reasonable position until rationality materializes."
Last month, Citron briefly leaked Cronos after publishing a report claiming the company was "everyone". However, some analysts have rejected the allegations in this report.
Tilray Eyes New Capital
Tilray's gains, which also follow its gains in the UK and Germany, have boosted its market value to more than $ 17 billion.
During the CNBC interview, Cramer noted that Tilray had much less money than Canopy Growth, which last month entered into a massive investment agreement with Constellation Brands (STZ). Cramer asked Kennedy if it was time to raise more capital, given the new investor attention. Kennedy said Tilray "constantly evaluated" new sources of capital.
In addition to the marijuana bubble, observers are worried about the collapse of weed prices as more and more competitors start producing them. Kennedy, during the interview, downplayed these concerns.
"It's like evaluating ABI on the price of wheat," he said.
"You will not see the merchandising of the finished product," he continued. "And in brands, you'll see price segmentation, value brands, premium brands, but you will not see brand merchandising across the spectrum."
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