Canopy Growth CEO Talks Tilray's 'Technically Weird' Price Action

The extreme volatility in shares of Tilray Inc TLRY continued Friday, but it could be a result of the limited supply of available shares, according to Canopy Growth Corp CGC CEO Bruce Linton.

What Happened

Tilray's volatility is likely the result of investors and traders "trying to play a game" with large share positions, Linton told CNBC Friday. For instance, one trader who initiates a 2-million share position would account for a sizable portion of the total daily trading volume and result in the "pretty weird" trading activity seen over the past few days, he said.

Tilray's production assets might be around 5 percent of what Canopy Growth produces, so it is unlikely the stock's surge to $300 is "about that company," the executive said.

It just got "technically weird," Linton said. 

'Create Things That Don't Exist'

The cannabis-infused beverage industry will include alcohol alternatives that give the user a "euphoric" sensation, while other beverages will focus on pharmaceutical benefits, the CEO said. Perhaps more important to the cannabis sector, Canopy Growth is in a position to "create things that don't exist now," he said. 

"Canada is this platform where you can create intellectual property, you can run medical trials, you can file patents without any hesitation — including into the U.S."

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