Marijuana News Today
The marijuana news today features a momentous occasion: the first ever marijuana initial public offering (IPO) on the Nasdaq, Tilray, continues to climb as investors show their eagerness to get in on the booming marijuana market.
The Tilray IPO on the Nasdaq saw the British Columbia-based medical marijuana business hit the Nasdaq at $17.00 per share, but watched the price soar to over $22.00 a share by day’s end.
The stock is up about three percent in early morning trading today, showing continued enthusiasm for the company, although there was a slight pullback from yesterday’s high of near $24.00.
The company, in its first day of trading, netted about a 31% gain overall.
The success of the Tilray IPO speaks to the growing hunger for marijuana companies on American exchanges.
I’ve written extensively on how U.S. investors are wary–or perhaps unaware–of Canadian exchanges like the Toronto Stock Exchange and Canadian Venture Exchange. This lack of familiarity can make them skittish when it comes to investing in Canadian marijuana companies, the dominant players in the industry.
U.S. marijuana companies are primarily relegated to the over-the-counter markets, exchanges known for their volatility and higher chance of duplicity. As such, U.S. investors have often felt constrained when it comes to investing in the marijuana industry.
But with the Tilray IPO being the first marijuana IPO on the Nasdaq, alongside Cronos Group Inc (NASDAQ:CRON) and Canopy Growth Corp (NYSE:CGC), we’re seeing more and more marijuana companies register on large U.S. exchanges.
The Tilray IPO netted the company $153.0 million in capital that it will use to help fund its expanding marijuana business. (Source: “Public shareholders got high today on Tilray, the first marijuana company to IPO on Nasdaq,” TechCrunch, July 19, 2018.)
Tilray, like many upstart companies operating in the space, is at a deficit. It showed a net loss of $7.8 million last year.
And, of course, it cannot peddle its wares in the U.S., despite being listed on the Nasdaq, due to federal law. But the company is now wide open for investment from U.S. buyers, and that makes the first marijuana IPO on the Nasdaq very exciting.
As with all things in the marijuana industry, I expect the company to see these massive jumps, followed by corrections, and it will take time to properly evaluate the future prospects of Tilray. But no matter what the company’s fate ends up being, this is still great news for the industry as a whole.
CGC Stock News
Since we’re looking at the exciting prospect of more marijuana companies joining major U.S. exchanges in the marijuana news today, why not take a look at the two pot stocks already on the NYSE and Nasdaq?
Chart courtesy of StockCharts.com
Starting with Canopy Growth Corp, we’re seeing another dismal week for the titan of the industry.
CGC stock is down about eight percent on the week, showing another week of pullbacks that have plagued the company since the massive spike the industry experienced when the Canadian marijuana legalization date was announced.
While I do see Canopy Growth stock bouncing back from these poor performances, the company will likely have to endure a few weeks more of this yet.
Hype will build and propel Canopy back into gains as we near October 17, the legalization date, but until then the company will have to contend with a skeptical market.
Even news of the company’s interest in expanding into marijuana-infused beverages has done little to spur growth in CGC stock.
“We expect we’ll be able to make beverages and those beverages will be no calorie, they will cause you to feel upbeat,” said Chairperson and CEO Bruce Linton. (Source: “‘Tweed and tonic’ marijuana drinks could be coming to Canada in 2019, says Canopy Growth CEO,” CNBC, July 11, 2018.)
While I’m still bullish on Canopy Growth stock long-term, the next few weeks are likely to be continuations of this downward trend, barring any sort of restorative news.
CRON Stock News
In direct opposition to Canopy Growth Corp, Cronos Group Inc has been able to tread water during this correction, which is better than what most marijuana stocks can say. Cronos stock is up about half a percent on the week, which is great compared to the weak performances of its rivals.
CRON stock has also had a bit of a maverick streak to its share value, and that hasn’t changed in this most recent correction. That makes Cronos stock one of the better picks for investors looking to have a hedge bet of sorts within the marijuana industry.
While I’m not as positive on CRON stock long-term as I am on CGC stock, the company does still have the potential for big gains to close out 2018 as legalization approaches.
The marijuana news today is, quite frankly, great.
The more companies that find themselves on major U.S. exchanges, the more U.S. investors will be willing to infuse capital into the industry and fuel growth.
It’s a win-win for both investors and marijuana stocks, and the Tilray IPO represents another milestone for the industry as it continues to gain legitimacy.