Tilray dethrones Canopy Growth as the most valuable marijuana stock
- Tilray hit a market cap of more than $14 billion on Tuesday, making it worth more than the previous title-holder Canopy Growth.
- Tilray's market cap has exploded by more than 800% since its July IPO.
- Follow Tilray's stock price in real-time here.
Tilray's explosive growth this week, a 29% through Tuesday, has left the Canadian cannabis producer with a larger market cap than Canopy Growth, which has held the title of largest publicly traded marijuana company.
As of Tuesday's close, Tilray was worth $14.44 in book value, compared to Canopy Growth's $10.91, thanks to its more than 800% gain since its July initial public offering.
On Tuesday, Tilray climbed 29% following the news it had been approved as the first cannabis company to export legal weed into the US for a clinical trial to treat essential tremor, or ET, at the University of California at San Diego.
The stock is up another 40% in pre-market trading Wednesday after CEO Brendan Kennedy appeared on CNBC's "Mad Money" Tuesday evening. He told host told the host Jim Cramer that Canada was just the tip of the iceberg for full legalization when it came to marijuana.
"I think you'll see the third country within 12 months of October, and that's where the real opportunity is," he said. "It's not about Canada - it's about all the countries that follow."
Outside of pharmaceuticals, the cannabis sector's strength has also come from deals with beverage companies like Constellation Brands, the global behemoth behind Corona that owns a 8.5% stake in Canopy Growth.
"It's a great hedge for them," Kennedy told Cramer. "Whether you're an alcohol or an investor in an alcohol company, this is a global opportunity."
Canopy Rivers, the venture capital arm of Canopy Growth which takes minority stakes in smaller, private companies, is set to begin trading on the Toronto Stock Exchange on Thursday.
More Markets Insider cannabis coverage:
- Coca-Cola is 'closely watching' the cannabis space - and is reportedly eyeing a deal with one of Canada's biggest producers
- The 'world's biggest legal-pot dealer' talks about taking his company public and the future of weed