This morning, Tilray Inc. (NASDAQ:TLRY) entered the hemp market with a supply agreement. The cannabis company made the major announcement early this morning, but Tilray stock is down. Let's take a closer look at this hemp agreement and the stock's latest movement!
Tilray Enters the Hemp Market
Tilray Inc. is based out of Nanaimo, British Columbia. The cannabis company processes and distributes medicinal cannabis in ten different countries. Tilray was incorporated this year and went public on the Nasdaq exchange at the end of July with Tilray stock.
This morning, the cannabis company announced the terms of its binding letter of intent to purchase hemp-derived CBD from LiveWell Canada Inc. (CSE:LVWL). The letter of intent outlines that LiveWell will supply Tilray with CBS isolate in February 2019. Tilray will then sell the CBD in the US and Canada.
“Today’s announcement puts Tilray in a strong position to expand the availability of our products in existing and new potential markets,” says Brendan Kennedy, Tilray CEO. “We’re pleased about the opportunity to increase our capacity to supply high-demand CBD products in Canada.”
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Despite the positive news for Tilray, Tilray stock is still trading red. The cannabis company believes its step into hemp will help it capitalize on the estimated $22 billion USD hemp industry.
Tilray Stock Movement
TLRY stock has been sliding on the Nasdaq exchange this month, and especially this week. With its shift towards hemp, it may push its shares higher. However, with its hemp news shared a few hours ago, investors don't seem that impressed as its shares are still dropping.
According to Yahoo Finance, Tilray stock is trading at $73.56 a share on NASDAQ, down -$1.57 (-2.09). Tilray currently is not trading on a Canadian stock exchange but is on a German stock exchange. At press time, 2HQ is trading at $65.00 EUR, up +$1.30 EUR (+2.04%).
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