Home Cannabis Big Headlines that Drove Cannabis Stocks Yesterday

Big Headlines that Drove Cannabis Stocks Yesterday

Tilray and ABG

While the market for Tilray (TLRY) was volatile yesterday, the company’s fundamentals remained unchanged. Earlier in the day, the company announced a revenue sharing agreement with ABG (Authentic Brands Group) with a right to receive up to 49% of AGB’s revenue generated from ABG branded cannabis products. Tilray could receive a minimum guaranteed payment of up to $10 million per year for a period of ten years contingent on ABG reaching certain milestones.

Cannabis Stocks versus ETF 2019-01-15

Tilray will be a preferred supplier of cannabinoid ingredients, and this deal allows both companies to develop, market, and distribute cannabis products globally by leveraging ABG’s portfolio of brands. As a company, ABG is in the business of marketing and brand development with brands such as Nautica, Aeropostale, and Shaquille O’Neal.

Tilray drops

However, this development was overshadowed by other news that pushed Tilray down yesterday. Tilray (TLRY) saw one of its worst days with a nearly 17.2% decline to settle at $82.8. The stock’s IPO lock-up period expired, which essentially means that early investors could sell their stocks in the market without restrictions. Usually, this is seen as a negative, as investors worry about the additional shares that will become available in the market.

The cannabis market was broadly lower with the ETFMG Alternative Harvest ETF (MJ) losing 66 basis points and Canopy Growth (WEED), CannTrust (CNTTF), and HEXO (HEXO) all ending in negative territory yesterday.

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