Active pot investors and day-traders are glued to their screens this morning watching how Nanaimo cannabis producer Tilray Inc fares after explosive stock gains drove its market cap more than $20 billion US.
Tilray shares surged 28.95% on Tuesday after it was reported that the company is the first to receive permission to legally export marijuana to the US as part of a clinical trial at the University of California at San Diego.
As of 7:11 a.m. PDT Wednesday, shares were up more than per cent, hitting $205.21US. Its stock closed Tuesday at $154.98US.
Tilray and a researcher at the University of California San Diego believe this is the first export of a cannabis product from a Canadian company to the U.S., where marijuana is still illegal at the federal level.
Tiray will be exporting capsules containing a formulation with two active ingredients extracted from the cannabis plant for a clinical trial examining the drug as a potential treatment for adults with essential tremor, a neurological disorder.
The formulation will contain cannabidiol and tetrahydrocannabinol, better known as CBD and THC, and will be used in a trial scheduled to begin in early 2019.
UC San Diego’s Dr. Fatta Nahab said he believes this product has not been imported from Canada into the U.S. before.
While several states have legalized cannabis for medical or recreational use, marijuana remains illegal under U.S. federal law.
Tilray trades as TLRY on the Nasdaq.
– with files from the Canadian Press