Tilray and Budweiser maker will partner to research weed drinks; Tilray stock jumps

Tilray and Budweiser maker will partner to research weed Beverages; Tilray stock jumps

Marijuana manufacturer Tilray Inc. announced Wednesday that it has signed a research partnership with Budweiser maker Anheuser-Busch InBev SA, as the Canadian cannabis industry continues to strike deals with legacy businesses.

The joint venture will operate through Anheuser-Busch’s BUD, -0.39% subsidiary Labatt Breweries of Canada, and each firm plans to invest around $50 million to research beverages infused with tetrahydrocannabinol, or THC, and cannabidiol, or CBD. THC is the compound that produces psychoactive effects, whereas CBD doesn’t — though it has other properties some view as beneficial.

Tilray TLRY, +6.00%  said that the partnership is limited to Canada, and that the two companies will make decisions about creating products from the research in the future.

“For us, it’s early days in this business and research feels like the ideal place to start,” Tilray Chief Executive Brendan Kennedy said in a telephone interview Wednesday morning. “At Tilray, we’ve been doing research and develop for nearly five years on a lot of different facets of cannabis and cannabinoid delivery. ”

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Tilray’s inventory opened more than 13% greater Thursday after the statement, adding to profits from another venture revealed earlier this week. The company revealed a global distribution deal with pharmaceutical giant Novartis AG NVS, +0.53% on Tuesday morning.

Released at Thu, 20 Dec 2018 16:04:15 +0000

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