“I like to say Ziploc is the biggest brand in the cannabis industry, and over the next few years you’re going to see that change, you’re going to see real brands and real companies.”
That’s how Tilray Inc. (Nasdaq: TLRY) CEO Brendan Kennedy has been explaining the prospects of his firm and his once-prohibited industry on the business talk shows in recent days.
Last Thursday, July 19, Tilray made history by becoming the first cannabis company to make its initial public offering on a major U.S. stock exchange.
The company raised $153 million, and saw its stock price make peak gains of 65% on Monday before falling back to a still respectable 24% gain in four days as of this morning.
It’s a move that lays the foundation for Tilray, and other select cannabis companies, to build out their successful brands in well-regulated markets that are popping up not just in the United States and Canada, but around the globe.
These brands are forming around everything from cannabis-based biopharmaceutical treatments to proprietary products like snacks, tinctures, and beverages that are fast becoming the preferred choice for recreational customers over smoking marijuana.
“It is still Day 1 in this industry, that’s how we think about it,” Kennedy said.
So no wonder investors around the globe want in.
Now, Tilray has a long history of being a “first mover” in its sector. Not only is it the first marijuana company to IPO on a major U.S. exchange, but it was the first Canadian cannabis company to distribute its marijuana at home and abroad. That puts it in a prime position to take advantage of not just the $4.7 billion Canadian market, but the $57 billion international market Arcview Market Research expects by 2027.
Tilray also has been at the forefront of the international medical marijuana market, boasting a stable of products for patients suffering from a wide range of maladies.
Moreover, Tilray’s and other cannabis biotech firms’ efforts just got supercharged.
That’s because exactly one month ago the U.S. Food and Drug Administration approved, for the first time ever, a cannabis plant-based treatment. In other words, the regulatory door has swung wide open. An entirely new drug industry is about to take off and could be worth not just hundreds of billions of dollars… but more than $1 trillion.
My colleague Ernie Tremblay, the Chief Scientific Researcher here at Money Morning, has just released a detailed presentation on the handful of tiny biotechs that are poised to realize explosive gains.
He’s researched five small companies that are developing pioneering CBD treatments. And these treatments could command as much as 21 times the price of regular, recreational marijuana.
These companies are targeting Tourette’s… Fragile X syndrome… graft-versus-host disease… epidermolysis bullosa… and more.
Ernie lays this all out in his presentation.
Cheers and good investing,
Michael A. Robinson