Tilray stock is dropping today despite the company announcing that it had signed the first-ever deal to deliver medical-use cannabis to Israel.
Landmark Israel Deal
Canadian cannabis firm Tilray Inc (NASDAQ:TLRY) revealed today that it had signed a supply agreement with Israeli company Canndoc Ltd to export a wholesale shipment of up to 2.5 tonnes of medical cannabis from its facility in Portugal. The shipment is expected to arrive early this month and will be the first medical cannabis import allowed into Israel. Canndoc will also export up to five tonnes of cannabis for use in products marketed by Tilray, subject to receipt of an export license. Despite the news, Tilray stock is down about 4% during Thursday trading.
Former Israeli Prime Minister and Chairman of the Canndoc Board of Directors, Ehud Barak, said, “With a supply shortage of medical cannabis in Israel, it’s incredibly important to partner with a trusted company like Tilray to import and distribute GMP-certified medical cannabis to physicians, pharmacies and patients across the country.” Canndoc was founded in 2008 and is the first publicly-traded cannabis company in Israel. Tilray stock is currently trading for $16.45 on news of the landmark deal.
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Tilray president and CEO Brendan Kennedy described the deal as "truly a historic moment not only for Tilray, but the whole industry." Despite the importance and scale of the agreement, the news has not been enough to majorly lift Tilray stock out of the slump that has seen its value decline as much as 83% in the last 12 months. Trading for as high as $100 just under a year ago, this pot stock has been on a downward spiral throughout 2019 in line with the broader difficulties of the Canadian cannabis market as a whole.
Better Days Ahead For Tilray Stock?
Back in November, Tilray stock was further hampered by mixed Q3 earnings. Despite posting revenue of $51 million CAD for the quarter, beating analysts' expectations of $49 million CAD, the company also lost 36 cents per share, worse than estimates for a 30-cent loss. Nonetheless, the cannabis market looks to 2020 and the launch of the 2.0 market to turn a new leaf, and with deals as impressive as the Canndoc deal, it just might be a sign of better things to come for investors in Tilray stock.
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