It was quite the day for Tilray stock. On Friday, January 11th, Privateer Holdings announced that it does not plan to sell its 75 million shares of Tilray Inc; this is a fear many investors developed over the last year or so. On the news, the Tilray stock skyrocketed, eventually closing the day up nearly 20%.
Tilray Stock went Flying Today, but Why?
Today, Privateer Holdings said that it doesn’t plan to sell its Tilray Inc (NASDAQ:TLRY) shares. Backed by billionaire Peter Thiel, investors thought after the lockup period expired the investment firm would ditch the company. That’s not happening, though. And the cannabis market had a strong reaction to the news.
There were justifiable points as to why Privateer may dump Tilray, such as the fact that the Tilray stock is down more than 50% since reaching its July 2018 all-time high. However, there’s more sense in why the firm has kept its enthusiasm.
Speaking on the matter was Michael Blue, a managing partner of the investment firm. “Privateer Holdings strongly believes in Tilray’s long-term global growth strategy,” he explained. He also said that Privateer Holdings believes Tilray maintains its advantage of being a company with the ability to shape “the future of the legal cannabis industry.” Setting the record straight, Blue confidently said the firm “does not have plans to register, sell, or distribute the shares” it holds.
With cannabis investors reacting with delight, Tilray stock jumped well into the double-digits. It did not stagger, ending the day in the same manner.
According to Yahoo Finance, as of 4:00 PM, Tilray stock closed the trading day up 19.40%. Its trading price was $96. For perspective, the TLRY stock opened at $92.48.
It Makes Sense, Don’t You Think?
Tilray stock may not be doing as well as it was in July of last year, but that doesn’t mean investors should give up on the company. Privateer is right to believe in the company’s long-term growth plan, as there’s evidence that it is executing this plan. For instance, the company recently paired with Anheuser-Busch InBev (NYSE:BUD) to manufacture cannabis-infused drinks in Canada.
What do you think of the news? Do you think Tilray stock deserved to soar on today’s news as much as it did?
Featured image: Canva