Tilray shares continue on their way after the approval of the export

TORONTO – The actions of the marijuana company Tilray Inc. have taken off – more than 90 percent, then briefly declined to a negative territory and a rebound – a day after the licensed producer approved for a clinical trial .

The stock closed at over $ 214, up 38%, after being shut down five times in one hour.

Drastic stock fluctuations followed a jump of nearly 30% on Tuesday after the firm in Nanaimo, BC, announced that it had received the go-ahead from the US Drug Enforcement Administration to export cannabis in capsule form to an American university. where drugs are still illegal at the federal level.

Tilray will export to the University of California capsules containing two active ingredients – cannabidiol and tetrahydrocannabinol, better known as CBD and THC – extracts from the plant for a clinical trial as a potential treatment for essential tremors. neurological disorder shake uncontrollable. The one-year trial is expected to begin in 2019.

In addition to being positive for the sector, the clinical trial supports Tilray's prospects for medicinal cannabis, which competes with Canopy Growth, a Smiths Falls-based company, in an arms race, said analyst Vivien Azer. Cowen.

"The news is positive for both TLRY and the entire cannabis universe, as additional medical applications and improved government support add another domino to future legalization in the US," she said. said in a note on Tuesday.

While cannabis is legalized in many states for recreational and medical purposes, it remains a Schedule 1 drug under US federal law.

Tilray's shares climbed more than US $ 230 just after trading began on Wednesday, but fell sharply.

However, by the end of the afternoon, it jumped to $ 300, up 94% from the previous close of $ 154.98. About an hour later, the share price reached 151.40 dollars before rising to 214.06 dollars, up 38.12%. The stock of Tilray was stopped five times between 14:52 and 15:48 – all volatility trading breaks.

Tilray completed its IPO in July with shares priced at USD 17 per share.

The market capitalization of the licensed producer was approximately US $ 19.9 billion at closing.

Canopy Growth, which was the largest cannabis company based on market value until Tilray overtook it this week, had a market capitalization of $ 11.28 billion on the Nasdaq on Wednesday.