- Tilray said Wednesday it had increased the amount of dried marijuana it will purchase from Supreme Cannabis, from 2 million Canadian dollars to 12 million.
- Shares of Tilray surged on the news, while Supreme was mostly flat in early trading.
- Follow Tilray’s stock price in real-time here.
Tilray is surging in early trading Wednesday after announcing it had inked a deal to buy 12 million Canadian dollars worth of dried cannabis from Supreme Cannabis for its medical marijuana business.
The agreement is a significant increase in the value of dried cannabis that Tilray originally agreed to purchase from Supreme on September 10. That deal was for 2 million Canadian dollars worth – 10 million less than Wednesday’s announcement.
Shares of Supreme, which trades on Toronto’s Venture Exchange and via an OTC ticker in the US, were up about 0.4% in early trading.
“We are excited to be entering into this agreement with Tilray, an organisation – like Supreme Cannabis – that focuses on the end user and demands leading quality assurance standards,” John Fowler, Supreme’s president, said in a press release.
“Tilray has built an industry-leading global medical distribution platform, which has resulted in robust demand for high quality cannabis products. We are happy to provide 7ACRES premium products alongside Tilray’s well-regarded and existing lineup to support medical patients around the world.”
Tilray’s medical-marijuana program has been a source of significant rallies for its stock price amid the 535% rise since its July initial public offering. Announcements of supplying CBD treatments in California and Australia have sent the stock on similar jumps the days they were announced.
Trials like the one in California are “a positive for both TLRY and the broader cannabis stock universe,” Vivien Azer, an analyst at Cowen, said at the time. “As additional medical applications and improved government support add another domino to future legalization in the U.S.”
MJ, the only US-based exchange-traded fund that seeks to track the entire marijuana sector, has risen 18% in September. The across-the-board rally has caused short-sellers – or those investors betting against weed stocks – a world of hurt, but they aren’t throwing in the towel just yet.
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