Tilray (NASDAQ:TLRY) and Anheuser-Busch have partnered up to do some research into the world of cannabis drinks and the potential benefits they may have for patients who suffer from a number of different health problems.
The marijuana producer and the beer maker have reportedly inked a research partnership through the latter’s Labatt Breweries of Canada subsidiary. Each company said it plans on placing a bet of up to $50 million to research beverages that have been infused with tetrahydrocannabinol, or THC, as well as cannabidiol, or CBD.
THC refers to the compound in the plant that products its psychoactive effects, while CBD does not provide a psychoactive element, but it may have other properties that could be beneficial such as pain relief. Tilray said that the deal between the companies is limited to Canada, and the two parties will then make decisions regarding the development of products from the research they conduct later on.
“For us, it’s early days in this industry and research feels like the right place to start,” Tilray CEO Brendan Kennedy said in a telephone interview Wednesday morning. “At Tilray, we’ve been performing research and develop for almost five years on lots of different aspects of cannabis and cannabinoid delivery.”
TLRY stock is up about 9.8% on the news this Thursday. It was a positive the day for the company, which saw its shares surge up to 13% earlier in the day.