Why Tilray’s (TLRY) Deal With Anheuser-Busch InBev Didn’t Excite Investors Very Much

You’d think that news of another deal between a Canadian marijuana producer and a big company outside of the cannabis industry would cause said Canadian marijuana stock to soar. And you’d especially think shares would absolutely skyrocket if the stock in question was Tilray (NASDAQ:TLRY). After all, Tilray stock soared nearly 14% in one day last September because the company shipped cannabidiol (CBD) oil to the U.K. — to one patient.

Tilray announced on Wednesday after the market closed that it was partnering with giant beermaker Anheuser-Busch InBev (NYSE:BUD) to research nonalcoholic beverages containing tetrahydrocannabinol (THC) and cannabidiol (CBD). Although Tilray’s share price did move higher on Thursday, its single-digit-percentage increase was relatively unremarkable for the highly volatile stock.

Why didn’t investors get as excited about Tilray’s deal with AB InBev as you might think they would? There are three main reasons…

1. Tilray isn’t getting any money

When Constellation Brands (NYSE:STZ) first announced a partnership with Canopy Growth(NYSE:CGC) in 2017, the big alcoholic beverage maker forked over 245 million in Canadian dollars (around US$190 million) for a 9.9% stake in the marijuana grower. In August 2018, Constellation invested an additional $4 billion in Canopy.

And when tobacco giant Altria (NYSE:MO) announced that it had picked Cronos Group(NASDAQ:CRON) as its cannabis partner, there was also a lot of money changing hands. Altria invested around $1.8 billion for 45% ownership in Cronos.

But Tilray isn’t getting a penny from AB InBev. Instead, the two companies are each putting up $50 million to form a joint venture. Their deal is more similar to the one between…

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