Tilray Inc.  (TLRY - Get Report) shares are smoking. 

Tilray Canada, a wholly owned subsidiary of Tilray, announced it agreed to a partnership with Ontario Cannabis Retail Corp. to supply Ontario with "a diverse array of cannabis products" ahead of the launch of the adult marijuana use market on Oct. 17, 2018. 

Tilray and Ontario Cannabis will offer an array of products, including pre-rolled joints, a women's wellness brand that features sublingual drops and massage oil and CANACA -- high-end Canadian cannabis that is offered pre-rolled or whole-flower.

Canada's new cannabis rules legalize the drug in October for people 19 years and older. People will be able to use the drug in any private residence but not in any public places, workplaces or motorized vehicles. 

Another major restriction is that unlike other municipalities in the United States, the Ontario Cannabis Store website will be the only legal option for purchasing recreational cannabis in the province. 

Tilray shares are up almost 12% on Tuesday.