Tilray stock extends rally as Democrat lawmakers promise to push marijuana reforms

• Shares of Tilray surged more than 22% Wednesday, buoyed by encouraging words from lawmakers on ending federal prohibition of marijuana.
• Shares of cannabis companies Aurora, Aphria, and Cronos are also trading higher.
• Senate Majority Leader Chuck Schumer also said that he has urged the attorney general nominee to respect states' rights when it comes to marijuana laws.
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Shares of Tilray climbed as much as 22% Wednesday, extending the stock's rally to the second day on the back of encouraging developments out of Washington, DC, earlier this week.

Tilray, a pharmaceutical and cannabis company headquartered in Toronto, saw its stock price touch the highest level seen in a year, hitting $28.82 at intraday highs.

Shares of other cannabis companies including Aurora, Aphria, and Cronos are also trading higher Wednesday.

The good news came late on Monday, when Democratic Senators indicated they would push to end the federal prohibition of marijuana.

Senate Majority leader Senator Chuck Schumer, New Jersey Senator Cory Booker, and Oregon Senator Ron Wyden released a joint statement vowing to decriminalize marijuana.

"The War on Drugs has been a war on people-particularly people of color," the statement read. "Ending the federal marijuana prohibition is necessary to right the wrongs of this failed war and end decades of harm inflicted on communities of color across the country."

Marijuana decriminalization is also a key pillar of the criminal justice reform proposals put forth by President Joe Biden. On Tuesday, Schumer also said that he urged attorney general nominee Merrick Garland to "respect the rights of states that have legalized marijuana."

The cannabis industry has been showing signs of steady growth following merger activity. On Wednesday, Jazz Pharmaceuticals announced plans to acquire GW Pharmaceuticals for $7.2 billion in cash and stock.

GW Pharmaceuticals is the first company to receive approval from the US Food and Drug Administration for medicine derived from the cannabis plant. The proposed merger is expected to close in the second quarter of this year.

In December, Tilray and Aphria, two of the biggest Canadian cannabis companies, announced a $4 billion merger, while in the US, a number of companies were also making smaller deals to enter states where cannabis is legal.

"We believe that the positive regulatory momentum will continue, with more states legalizing recreational and medical cannabis," Jason Adler, a managing partner at the Santa Monica-based Gotham Green Partners, told Insider. "With increasing bipartisan support and a clear need for state and local tax revenues, it will be hard to ignore the pace of change and the progress of these programs."

Finally, the Reddit-fueled mass buying that has disrupted the stock market may still be underway. Day traders are still charging enormous gains in various targeted stocks. Many Redditors, in a recent post, are still banding together to "hold the line."

Shares of Tilray traded at $27.36 at 12:12PM E.T. on Wednesday.