Tilray Stock: Soaring on Big Deal With Budweiser Makers

Tilray Stock

Tilray stock looks set to soar.

It was inevitable that cannabis maker Tilray (NASDAQ:TLRY) would cozy up with a global drinks brand in a trend that is sweeping the industry as of late.

And now, AB InBev (NYSE:BUD)—the world's largest beer brewer and Budweiser maker—announced it is teaming up with the Canadian cannabis producer to research and develop cannabis-infused drinks.

Tilray stock soared after the market closed last night. Let's have a look.

Tilray Stock Soars on Budweiser Deal

AB InBev and Tilray will invest a combined $100 million into researching non-alcoholic cannabis beverages. The news comes hot on the heels of tobacco giant Altria's (NYSE:MO) investment into Cronos Group (NASDAQ:CRON) and Constellation Brands' (NYSE:STZ) industry-shaking $400 million investment into Canopy Growth Corp (NYSE:CGC) in August.

Kyle Norrington, president of AB InBev's Canadian subsidiary Labatt Breweries, said the following on the news:

"We intend to develop a deeper understanding [...] that will guide future decisions about potential commercial opportunities."

It's early days, and AB InBev is starting by only using cannabis ingredients in Canada. It will decide at a later date whether or not the cannabis products will be commercially viable.

Tilray Stock

TLRY stock in pre-market trading is priced at $81.55 USD. Closing yesterday at $71.00, the stock has surged approx 13%, clearly displaying investors' delight on the news.

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Based in British Colombia, Canada, Tilray specializes in medical cannabis products. It was one of the first cannabis companies to trade publicly on the NASDAQ, and its stock has quadrupled since those early trading days back in July.

Partnerships

This is not the only major news spurring on Tilray stock. Earlier this week, the company announced another major partnership, this time with Swiss pharmaceuticals company Novartis. The deal will see Tilray supply and distribute medicinal marijuana internationally exclusively for Novartis.

Big consumer brands have been looking at capitalizing on the continually loosening restrictions on cannabis and relative cannabis products.

What do you think about the Tilray and Budweiser deal?

Featured Image: Depositphotos/ahfoto.mail.ru

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