The two companies are joining forces to research the cannabis beverage industry
Tilray Inc. announced yesterday that it had inked a deal with Budweiser beer manufacturer Anheuser Busch (A-B) that would see the two firms exploring cannabis beverages. The project will be led by a subsidiary of A-B, Labatt Breweries, with both Tilray and A-B putting up as much as $50 million. They will research creating beverages that are infused with tetrahydrocannabinol (THC) and cannabidiol (CBD) and the announcement proved to be positive news, at least for a brief moment, for both companies’ stocks.
A-B, which is traded under the BUD ticket, saw its price inch upward 0.07%. It reached $70.42 on Wednesday, but, like most stocks, wasn’t able to hold its position and has since retreated to $67.75 at the time of this writing. The stock is traded on the New York Stock Exchange (NYSE).
Tilray was the big winner, seeing its stock price climb 13.61%. The company indicated that the new partnership is exclusive to Canada, but that both companies will be behind the decisions that could lead to new product developments. The company’s CEO, Brendan Kennedy, stated, “For us, it’s early days in this industry and research feels like the right place to start. At Tilray, we’ve been performing research and development for almost five years on lots of different aspects of cannabis and cannabinoid delivery.”
Tilray, which is traded under the TLRY ticker symbol on the NASDAQ exchange, has held up better in the face of market downturns. After the announcement, the stock price increased initially by 10% before seeing a combined improvement of 13.61%. It is now trading at $78.74, only slightly lower than the $79.80 it saw yesterday.