Can Tilray Conquer the U.S. Hemp Industry?
Year to date, shares of Tilray (NASDAQ: TLRY) are down by 62%, and the company's stock price is now at an all-time low. And while the entire stock market has been dragged down by fears surrounding the COVID-19 outbreak, Tilray's most recent quarterly update didn't help, either. The company's fourth-quarter financial results failed to impress investors, which caused Tilray's shares to slide by 11.5% on the heels of the release of its earnings report.
However, there was at least one bright spot in Tilray's earnings report, namely the fact that the company's hemp business seems to be performing well.
On Feb. 28, 2019, Tilray closed its acquisition of Manitoba Harvest, the "world's largest hemp foods company," which it acquired for CA$419 million. Manitoba Harvest distributes hemp-based products to about 16,000 stores in North America, with the majority of these stores being in the U.S. Thanks to this move, Tilray was able to enter the potentially lucrative U.S. market for cannabidiol (CBD), which is derived from hemp.
Source Fool.com
