Cannabis Stocks Keep Surging Higher and Investors are Smiling All the Way to The Bank.
At the end of December 2018, Tilray Inc., a Canadian pharmaceutical and cannabis company, announced a deal with Novartis, one of the largest Swiss multinational pharmaceutical companies. As a result, the share price of Tilray surged 21.9% higher on the 18th of December 2018, trading at $65.89 a share. That’s an impressive climb from Tilray’s initial public offering price of $17 a share in July 2018.
As part of the partnership agreement, Tilray will work directly with Sandoz, the generic drug business of Novartis and will be responsible for the supply of non-combustible and non-smokable medical cannabis products to countries worldwide, where is it legally permitted. Sandoz and Tilray will also develop new products together and will co-brand some of their existing cannabis products.
As Brendan Kennedy, CEO of Tilray explained, this agreement will enable both companies to provide quality and safe GMP-certified medical cannabis to people globally. Tilray already offers its products in twelve countries around the world. Kennedy also emphasized that with the growing legalization of cannabis for medical and recreational purposes, pharmaceutical companies need to partner with cannabis companies in order to be a part of the flourishing marijuana industry. The strategic alliance between Tilray and Sandoz will enable Novartis to assist Tilray in co-marketing and co-developing products, while Tilray will get the benefit of their expanding product base and distribution.
But the growth for Tilray doesn’t stop there. In March 2018, the company became the first to receive regulatory approval in Germany and Canada to export medical cannabis flowers in order to distribute to German patients.
The Budweiser and Tilray $100 Million Joint Venture
In addition, Tilray also recently partnered with Budweiser-maker to research weed drinks. Anheuser-Busch InBev SA and Tilray agreed to invest $50 million each on this joint venture. The research will run through Anheuser-Busch’s subsidiary Labatt Breweries of Canada and will research beverages infused with THC (tetrahydrocannabinol), the compound that produces psychoactive effects and CBD (cannabidiol), which has other beneficial properties. This research will be limited initially to Canada and decisions regarding developing products from the research will be discussed in the future. This will also include how cannabis products should be packaged, recipes for new products as well as how production can be scaled effectively.
This recent partnership also pushed Tilray stocks 13% higher, adding to the gains from the Novartis partnership.
Strategic Partnerships Worth Billions of Dollars
Strategic partnerships are evident in the cannabis industry. Cronos Group Inc. recently took a $1.8 billion investment from Marlboro maker Altria Group Inc., while Constellation Brands Inc. made a $4 billion investment in Canopy Growth Corp., a weed company based in Ontario.
To put all of this into perspective, Canada's vote to legalize recreational marijuana has prompted significant investor attention to marijuana stocks. In fact, ArcView Market Research and BDS Analytics have projected that the sales of Canadian marijuana will jump from around $600 million in 2017 to $5.4 billion by 2022. That's a compound annual growth rate of more than 55%.
Cannabis stocks are quickly becoming the latest hype with global investors, who are taking advantage of the many profitable trading opportunities this market offers. To top it off, everything is in favor for this industry to keep growing and for the profit potential to expand exponentially.
A Budding Investment Opportunity
Let’s look at the facts.
You have no doubt seen, firsthand, the rapid growth in public support for cannabis. This is evident by the growing number of states that have legalized the drug for recreational and medical purposes. Another piece of this growing puzzle is that many companies in the cannabis industry have opted to ‘go public.’. This means that their shares are available for purchase on public stock markets. The main goal of these IPOs is to raise cash to fuel additional growth and it is evident that they are getting the support from global investors. If you follow financial news, you are probably aware of the enormous gains that cannabis stocks are making. Predictions by analysts who see the marijuana market reaching $22 billion by 2022, is another positive element for the cannabis stock market.
All of these developments are great reasons to be investing in marijuana stocks
For most investors, cannabis stock trading is a new market which means that they could be hesitant to step into this arena. The benefit, however, is that there are a variety of trading products, platforms and software that can provide investors with direct access to the cannabis stock market. One of the leading, recommended and most effective software is Cannabis Software, which gives traders access to a certified online trading platform to trade marijuana stocks. A great benefit of Cannabis Software is that it is available free of charge and investors can register for free on the platform.
Once the investor is registered, the available features and services include a dedicated account manager, price charts and indicators, comprehensive educational material on how to trade cannabis stocks, seamless and secure banking processes and access to professional and responsive customer support. If investors are looking to profit off the many deals currently in the cannabis market, Cannabis Software gives them this easy access. In addition, you do not need to be an experienced trader to use Cannabis Software; even new investors are able to use the software and to profit from the cannabis stock market.
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Bigger Markets, Higher Profits
While Germany legalized medical marijuana in 2017 and the country's cannabis market could approach $1.6 billion by 2022, the biggest prize of all is still the United States. The U.S. is likely to account for close to three-quarters of total cannabis revenue in the upcoming years. This means that investors worldwide will benefit from this sizzling growth if they start to trade in cannabis stocks now.