The red-hot rise of cannabis firm Tilray (TLRY) in recent days is spreading to stocks with even tenuous ties to legal weed. For instance, IntelGenx Technologies Corp. (IGXT) soared 115.3% Thursday to close at $1.83 on news of a Tilray partnership even as TRLY itself pulled back 17.6%.
IntelGenx and Tilray plan to co-develop and commercialize oral films that are infused with cannabis. Tilray also plans to make a strategic investment in the company, buying 1.25 million IGXT shares at 80 cents per share.
"This [nonbinding] letter of intent marks the first step in forming an exciting partnership with Tilray, a global leader in the medical- and recreational-cannabis industry," said Dr. Horst Zerbe, president and CEO of IntelGenx, a small Quebec pharmaceutical company.
The announcement sent IntelGenx to its highest levels since 2007 and pushed the stock above $1 for the first time since June 2017.