Shares of Tilray (NASDAQ:TLRY) were up more than 20% in pre-market trading on Tuesday after the company inked a deal with Grow Pharma to import and distribute Tilray’s medical cannabis products into the United Kingdom beginning next month. The TLRY stock news is also lifting other cannabis stocks.
The company said it expects to have a range of GMP-certified, medical cannabis products available by prescriptions through private practice or the U.K. National Health Service (NHS).
Tilray’s gains also lifted the shares of its pending merger partner, Aphria (NASDAQ:APHA). In December the two firms announced a Canadian cannabis tie-up that would create the biggest marijuana company by revenue.
TLRY Stock Could Be Squeezed By Shorts
Despite the good news for Tilray, there’s a short interest cloud moving in. As the TLRY stock price has surged more than 250% year-to-date, short interest has increased to 51%.
Not to be left out in today’s cannabis stock rally, shares of Canopy Growth (NASDAQ:CGC) were also up in the pre-market after it said it expects to be profitable within a year. That update came as CGC reported a larger-than-expected loss for its fiscal third quarter.
Sector peers Sundial Growers (NASDAQ:SNDL), Aurora Cannabis (NYSE:ACB) and Cronos Group (NASDAQ:CRON) were also up, 7.03%, 4.44% and 2%, respectively.
Cannabis stocks are rallying in recent weeks thanks to the prospect that President Joe Biden, with Democrats controlling both houses of Congress, will take the U.S. to federal-level decriminalization of pot. The sector took off in January after Democrats won control of the Senate with dual victories in Georgia runoff elections.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.
