Shares of Tilray (NASDAQ:TLRY) and its overall market cap have stormed the cannabis public market to finally surpass industry leader Canopy Growth (NYSE:CGC,TSX:WEED).

Tilray’s market cap has risen from an original US$1.5 billion market cap since its initial public offering (IPO) debut to reach a market cap of US$10.80 billion on Thursday (September 13).


Meanwhile, Canopy’s market cap on the Toronto Stock Exchange (TSX) has reached C$13.09 billion, or roughly just over US$10 billion.

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Since its IPO, Tilray’s share price has soared over 350 percent, with a significant portion of these gains coming in August.

Tilray closed the trading session on Thursday with a 14.11 increase to its stock, representing a price of US$119.76, although after hours trading brought the company’s down 7.61 percent.

Some of the growth seen by the company recently is being attributed to Tilray obtaining permission to export medical cannabis into Germany.

According to the company its cannabis extracts had been available in the European nation through partnerships with German pharmaceutical wholesalers.

Tilray a favorite for next alcohol partnership

Following the rumors of an entry from alcohol producer Diageo (NYSE:DEO) into the cannabis space, shares for Tilray quickly accelerated as the company became the one mentioned the most by financial advisors to gain some sort of alcohol partnership.

“[Tilray is] a quality name in the space and it would make a good partner for someone looking to enter [like a] beverage company,” Doug Waterson, CFO and portfolio manager with Faircourt Asset Management and manager of the Ninepoint UIT Alternative Health Fund told the Investing News Network (INN).

Cowen & Co. analyst Vivien Azer said Tilray is a natural candidate, given the positive attributes around its portfolio construction during a televised interview. The analyst also issued a research note calling the company an “attractive partner” for an alcohol company seeking to enter the space.

As part of its Q2 2018 financial report, the company shared it had produced revenue of US$9.7 million for the quarter. This income was produced from medical sales in Canada, wholesale to other Canadian producers and international sales.

Tilray has also guaranteed its product will hit the recreational market across Canada — thanks to supply agreements with Ontario, BC, Quebec, Manitoba, PEI, Nova Scotia, Yukon and the Northwest Territories — through its recreational brand subsidiary High Park Holdings.

Rise of Tilray raises questions about cannabis market valuation

With the quickly growing cannabis market, various financial advisors and observers of the public sectors have raised eyebrows at the fundamentals and reality of the space compared to current valuations and market caps.

Since cannabis won’t become legal for adult-use in Canada until October 17, these companies have received revenues from medical sales or other forms of transactions. The expectation for cannabis producers raising capital is that, once the market comes online, investors will get a better sense of what the value should be.

Charlie Bilello, director of research at Pension Partners, manager of the ATAC Rotation Fund (ATACX), tweeted charts comparing Tilray’s share and market cap with those of other more established industries.

With these rises for cannabis stocks, comparisons to the cryptocurrency rush of 2017 and the dotcom bubble have become inevitable for the booming sector.

During the Vancouver edition of the International Cannabis Business Conference (ICBC) Nic Easley, CEO of 3C Consulting and a managing partner with Multiverse Capital, told INN investors needed to be ready for the bubble to pop.

“The bubble is caused for all the speculation and all the international markets that they can sell things to,” Easley said. He added this leads to a “curve of disillusion” from rising potential.

The executive said during a panel the cannabis bubble, in his opinion, was three times worse than the dotcom bubble.

Investor takeaway

Despite Tilray’s rush on Wednesday, the rest of the cannabis market took a hit during the trading session. The Horizons Marijuana Life Science Index ETF (TSX:HMMJ) fell 9.73 percent while the Evolve Marijuana ETF (TSX:SEED) lost C$2.21 in value, representing a 9.46 percent reduction.

The only other Canadian LP with public stock on the NASDAQ, Cronos Group (NASDAQ:CRON;SX:CRON), dipped on Thursday 10.29 and closed at a price of US$10.11 per share in the US exchange. During after hours trading the company declined an additional 3.07 percent.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Aurora Cannabis Inc. (NYSE: ACB) between February 13, 2020 and September 4, 2020, inclusive (the “Class Period”), of the important December 1, 2020 lead plaintiff deadline in the securities class action. The lawsuit seeks to recover damages for Aurora investors under the federal securities laws.

To join the Aurora class action, go to http://www.rosenlegal.com/cases-register-1965.html or call Phillip Kim, Esq. toll-free at 866-767-3653 or email pkim@rosenlegal.com or cases@rosenlegal.com for information on the class action.

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Company: 4Front Ventures Corp.

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/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES /

  4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) (” 4Front ” or the ” Company “) is pleased to announce that it has completed its previously announced bought deal prospectus offering (the ” Offering “) of units of the Company (” Units “), for aggregate gross proceeds of C$17,251,150 including full exercise of the over-allotment option granted to the underwriters in connection therewith.

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Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against the following publicly-traded companies. You can review a copy of the Complaints by visiting the links below or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss, you can request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff

Tactile Systems Technology (NASDAQ:TCMD)
Class Period:
May 7, 2018 – June 8, 2020
Deadline: November 30, 2020
For more info: www.bgandg.com/tcmd

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Khiron Life Sciences Corp. (“ Khiron ” or, the “ Company ”) (TSXV: KHRN), (OTCQB: KHRNF), (Frankfurt: A2JMZC), announced today that it has re-filed its unaudited condensed interim consolidated financial statements, together with the notes thereto, for the three and six months ended June 30, 2020 and 2019 (the “ Interim Financial Statements ”) to correct, among other things, certain 2019 comparative period information and to update certain presentation arising from the Company’s early adoption of IFRS 3 in late 2019, which changes were identified in connection with the Company’s review engagement with its auditor. The Company does not consider these adjustments either individually nor in the aggregate, to be material.

The re-filed Interim Financial Statements reflect changes to the Condensed Interim Consolidated Statements of Loss and Comprehensive Loss comparative period to remove transaction fees from the income statement and capitalize them to the applicable acquisition in accordance with the Company’s early adoption of the amended IFRS 3 as set out in Note 2, and to reclassify $1 million from general and administrative expenses to transaction fees for presentation purposes to conform with the Company’s presentation used in its audited consolidated financial statements for the years ended December 31, 2019 and 2018 (the “ Audited Annual Financial Statements ”). The re-filed interim Financial Statements also reflect changes to the Condensed Interim Consolidated Statement of Changes in Shareholders’ Equity to correct the 2019 comparative period balances as they incorrectly reflect Q1 2019 period balances, update certain presentation to conform with the Company’s presentation used in its Audited Annual Financial Statements; and reduce the valuation conclusion of the Company’s acquisition of NettaGrowth International Inc. to conform with the Audited Annual Financial Statements. The re-filed Interim Financial Statements also bring forward the subsequent event note disclosure.

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