Tilray Inc. (TLRY) shares are falling 17.5% after hours Wednesday after being halted five times during the afternoon session.
Tilray shares closed the intraday session up 38.12% to $214.06.
The stock jumped more than 90% intraday Wednesday, September 19 leading to Tilray being halted up 69.92% to $263.34. The stock was halted once again during a subsequent selloff, up 8.6% to $168.33. Trading resumed, with shares jumping another 40% before being halted once again.
The stock debuted in July at just $17 per share.
Investors either really liked what CEO Brendan Kennedy had to say to Jim Cramer Tuesday night on "Mad Money" or the company's stock is a bubble waiting to burst.
Kennedy touted his Canadian cannabis business as a smart hedge for the world's largest pharmaceutical companies in an interview with Cramer on CNBC.
"Cannabis is a substitute for prescription painkillers, prescription opioids, and so if you're an investor in a pharmaceutical company or you're a pharmaceutical company, you have to hedge the offset from cannabis substitution," Kennedy told Cramer.
Tilray's shares rose 29% Tuesday after the Canadian pot company announced it received approval from the U.S. Drug Enforcement Administration to import pharmaceutical-grade medical cannabis for a clinical trial. It is the first Canadian pot company to receive approval to import into the U.S. Tilray shares have risen 400% over the past four weeks.
Tilray will import a cannabis pill that will allow researchers to test an investigative drug product containing cannabidiol and tetrahydrocannabinol. The study is slated to begin in early 2019.
Wine and spirit giant Constellation Brands Inc. (STZ) was among the first to sniff out the opportunity in cannabis, spending $191 million in 2017 for a 9.9% stake in Canopy Growth. Constellation has since dropped$4 billion more to raise its stake in Canopy Growth to 38%.
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