Canada is ‘the tip of the iceberg’ for legal cannabis, says boss of the biggest pot stock
Canada is just the tip of the iceberg for full legalisation when it comes to marijuana, says the boss of the most valuable North American pot stock.
The Canadian cannabis producer Tilray soared overnight morning after chief Brendan Kennedy laid out his company’s growth prospects on CNBC’s “Mad Money.”
The Nasdaq-listed shares (TLRY) touched a high of $US300 apiece – up more than 93 per cent. They cooled late in the session to $US214 — valuing the company at almost $15 billion. Trading of the stock was halted for volatility at least four times.
“There’s a clear global growth opportunity when it comes to medical cannabis,” Mr Kennedy told Mad Money host Jim Cramer.
“With Canada, we’re about to see 100 per cent growth: one country Uruguay, to two countries Canada. What intrigues me is country three, four, five and six.
“I think you’ll see the third country within 12 months of October, and that’s where the real opportunity is,” Mr Kennedy told Mad Money host Jim Cramer.
“It’s not about Canada – it’s about all the countries that follow.”
Mr Kennedy suggested the entire alcohol industry needed to get involved in the marijuana space. “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.”
But that’s not all. He also said pharmaceutical companies needed to get in the game, noting that Tilray had already formed a strategic alliance with Novartis.
“Cannabis is a substitute for prescription painkillers, prescription opioids, and so if you’re an investor in a pharmaceutical company or you’re a pharmaceutical company, you have to hedge the offset from cannabis substitution,” he said.