Cannabis stocks have corrected today after most were shining green at market open. There have been some major announcements by major cannabis players today, but that didn't seem to affect cannabis shares at all. We'll take a closer look at Tilray Inc (NASDAQ:TLRY) and the Tilray stock.
The company just released major news that will shape 2019 for the cannabis company. Let's dive in!
Tilray Acquires Natura Naturals
According to Bloomberg, Tilray Inc is set to pay $35 million CAD to acquire Natura Naturals Holdings. Natura is a parent company of a licensed cultivator of marijuana that is based out of Leamington, Ontario.
Currently, Natura holds a 662,000 square-foot greenhouse that Tilray will now acquire. Currently, 155,000 square feet of this facility is licensed. Tilray will pay $15 million CAD in cash for the deal and $20 million CAD in Class 2 shares. Despite the positive news, Tilray's stock continues to fall on the Nasdaq exchange.
Natura, which was formerly MCM Naturals, was formed back in 1985 and the company spent 28 years selling growing produce. The company began switching its operations to cannabis back in 2014 and was given its first growing license back in September 2017.
Tilray hopes that this new deal will help address the cannabis supply shortages in Canada. The shortages are currently in the newly developed recreational cannabis space. With the extra greenhouse space Tilray acquires with the deal, the company has put itself in a great position to continue expanding in Canada. According to Cowen analyst Vivien Azer, the company will now double its Canadian cultivation capacity.
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Tilray Stock Movement
According to Yahoo Finance, Tilray's stock is currently trading at $72.23 a share, down -$0.57 (-0.78%). The company hit a spike in its share price last week, but the stock has since declined. Will this new acquisition push Tilray stock higher? At the moment, the move doesn't seem to be taking any effect. In the last five days, TLRY is down -15%.
Do you think Tilray will turn it around?
Featured Image: Canva
