On January 11, Tilray (TLRY) rose almost 19% and closed at $96. Tilray had its best day in 2019 after it fluctuated in 2018. Tilray became one of the hot stocks for day traders and other investors looking to make a quick buck in September when the stock reached a peak of almost $300. In the rest of 2018, Tilray lost its sheen. The stock fell as low as $65 towards the end of 2018. So, what boosted Tilray on January 11?
Why did Tilray increase?
Tilray got a boost from one of its biggest shareholders, whose lock-up period is coming to an end this week. The shareholder indicated that it intends to hold Tilray even after the lock-up period expires. According to a Bloomberg report, Privateer Holdings held nearly 76% of Tilray’s shares. A sale from Privateer Holdings would add as many as 76 million shares to the company’s float.
Privateer Holdings doesn’t intend to sell its shares. The company supports Tilray’s global growth strategy.
Currently, Tilray has a float of nearly ten million shares, which is significantly low compared to its peers (HMMJ). Aurora Cannabis (ACB) has 929 million shares, Canopy Growth (WEED) has 49 million shares, and Cronos Group (CRON) has 156 million shares. With little hope from Privateer Holdings regarding more shares available for trading, the company might continue to see wide swings in the price, which makes it appealing to day traders. However, Privateer Holdings doesn’t intend to sell Tilray’s share in the first half of 2019. When Privateer Holdings decides to sell Tilray’s share, it will happen in an orderly manner.
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