Why Tilray Shares Popped Monday

The stocks of Canadian cannabis companies have long been moving based on the potential for the U.S. market to open up to them. That road seems inevitable as recreational pot use has become increasingly legal at the state level. But word of a new federal draft bill has brought renewed momentum to stocks like Tilray (NASDAQ: TLRY) recently. That momentum had shares of the company trading almost 8% higher early Monday. The stock has pared some of those gains, but still remains 3.6% higher as of 1 p.m. EST.

News of draft legislation led by South Carolina Republican Rep. Nancy Mace has been reported in circles of the cannabis sector since last week, and it is scheduled to be officially unveiled today. Tilray has been positioning its business for the eventual legalization in the U.S., and a bill sponsored by Republicans could be a game changer.

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Source Fool.com