Health Canada sales licenses are sending a handful of stocks higher this week. Tilray’s (NASDAQ: TLRY) stock and other pot company shares shot up yesterday. The company announced that its subsidiary High Park Farms got a sales license, which caused the boost.
Tilray’s subsidiary High Park Farms will sell cannabis products using the cultivation license it acquired in April. It is also preparing to sell products for the adult-use market in Canada. Based in Toronto, Canada, it has 13 acres of greenhouse in a cultivation facility.
Canada will legalize recreational marijuana for adult-use in this month.
Tilray stock surges
Tilray’s stock price increased nearly 15% to close at $164.98 on Monday.
In contrast, Canadian pot producer Canopy Growth (TSX: CGC) increased by 0.5%.
The improvement in Tilray stock follows a roller coaster ride in September. After the DEA gave Tilray the OK to trial medical marijuana in the U.S. the stock rose to $300. The Ontario Securities Commission halted trading five times. Tempered buyers then wiped out all gains within a day. Tilray’s stock went on to end the month up a healthy 120%.
New Age Beverages (NBEV) and India Globalization Capital (IGC) are two other cannabis-infused beverage companies. Their shares also took a swing upward on the news.
Cannabis-Infused drinks riding the wave up
Buyers also clamored for New Age Beverages stock on Monday. The stock was up 67% on Monday after moving up 261% in September. Their products include Coco Libre coconut water and tea and energy drinks. The company will introduce a line of cannabis-infused drinks next week.
India Globalization Capital also surged up 40%. It plans to enter the cannabis-infused market as well. The company has a medical cannabis arm and an equipment-rental division. India Global stock was up 291% in September.
Cannabis is the component of marijuana that doesn’t get users high. Users say it helps with anxiety.