Shares of Canadian cannabis company Tilray (TLRY) - Get Report rose more than 10% Thursday after the company announced a product research deal with Budweiser parent AB InBev (BUD) - Get Report  ,one of the world's largest brewers.

Tilray shares shot up $7.30 -- or 10.3% -- to close at $78.30 on a day when the Dow industrials fell 2% to 22,859.60. That's a big reversal for Tilray from Wednesday, when the stock tumbled 7% to $71 amid a broad market selloff after the Federal Reserve raised interest rates. However, AB InBev shares fell 1.5% to end Thursday at $67.78, falling in sympathy with the broader market.

Tilray and AB InBev's new research partnership will explore non-alcoholic beverages that contain THC and CBD, both key chemicals found in marijuana but with very different purposes. THC is the psychoactive chemical in marijuana the produces the high, while CBD is non-psychoactive and blocks the high. As part of the deal, each company will pitch in $50 million, with Tilray taking part through its subsidiary, High Park Co., which develops, distributes and sells cannabis products in Canada.

"We are delighted to be joining forces with a world-leading beverage company, AB InBev, to research how to create enjoyable cannabis beverage products," Tilray CEO Brendan Kennedy said in a press release announcing the deal.

Kyle Norrington of AB InBev's Labatt Breweries, which will oversee BUD's part of the venture, added that "we intend to develop a deeper understanding of non-alcohol beverages containing THC and CBD that will guide future decisions about potential commercial opportunities."

The companies said the partnership will be confined to Canada, where marijuana is now legal at the federal level (unlike in the United States). The deal came one day after Tilray announced a separate distribution deal with Sandoz, the generic-pharmaceuticals subsidiary of Swiss drugmaker Novartis AG (NVS) - Get Report  , to sell and distribute medical-cannabis products globally.

(This article has been updated.)