Tilray trading halted twice after stock rallies to record at US$300 before profit-taking kicks in

Trading in Canadian cannabis company Tilray Inc (NASDAQ:TLRY) was halted twice on Wednesday after the stock nearly doubled from the previous close.

Tilray stock soared to trade at a record US$300 per share before suspected sell-stop orders kicked in and knocked the stock down to US$263.34, still up almost 70% on the day. At that point, trading in the stock was halted.

READ: Tilray CEO encourages pharma and booze companies to enter the cannabis space; shares soar

The shares began trading some 10 minutes later and was trading 64% up at US$257.73. Some 40 miuntes before the close of trade, business was halted again and Tilray was seen at US$224.68, up almost 45% on the day.

The rally was inspired by news that the company had received approval to send a medical cannabis study drug to California.

The rally has forced shorts to fork over larger amounts of funds to maintain their margins and positions in the market, analysts said.

READ: Cannabis short-sellers may be forced to cover soon as huge losses pile up, says S3 Partners

The Canadian cannabis sector has been a battleground between those touting the market opportunity stemming from the legalization of cannabis in Canada and short sellers who believe the stocks in the market are heavily inflated.

Tilray is  a cannabis producer based in Canada. Its stock spiked after it was allowed by the US to send a cannabis drug for a study in the country.

Story by ProactiveInvestors