The NASDAQ stock exchange halted trading of shares in Canadian marijuana producer Tilray Inc. (NASDAQ: TLRY) after the price doubled in the past two days.
The share price of Tilray doubled after the company announced that it has received approval from the U.S. Drug Enforcement Administration (DEA) to supply cannabis for an upcoming medical marijuana clinical trial in California.
The New York-based NASDAQ exchange halted all trading in Tilray due to rising volatility in the share price, following rules that cease trading once certain limits are reached in any stock. Tilray’s share price opened at $211 U.S. Wednesday morning, and before being halted it had reached $300 U.S. per share.
Wednesday's rise followed a 30% jump on Tuesday after British Columbia-based Tilray announced that it has approval to export cannabis in capsule form to a researcher at a California university.
The capsules will have two active ingredients extracted from the cannabis plant for a clinical trial as a potential treatment for neurological disorders that cause tremors and uncontrollable shaking.
Tilray completed an initial public offering (IPO) this past July with its shares price initially listed at $17 U.S. a share. The company’s market capitalization reached $20 billion U.S. following Wednesday's stock trading.
