Despite second quarter results that showed less than $10 million in sales, marijuana producer Tilray Inc.‘s stock (NASDAQ: TLRY) continues to rise and its market value is fast approaching $5 billion.

The Nanaimo, B.C.-based company is just one of several marijuana companies that’s attracting valuations far ahead of its revenue. And with a 40% jump in its stock price in the last week, Tilray is on a roll.

In the 3 months ended June 30, the company reported a net loss of $12.8 million on sales of $9.7 million. Still, that was about double the $4.9 million of sales the company reported in the second quarter of 2017. Tilray sells medical cannabis to patients in 11 countries and is ramping up to supply recreational marijuana to the Canadian market when the drug is legalized on October 17.

“We are very pleased with our strong start to 2018,” Chief Executive Officer Brendan Kennedy said in a media statement. “Tilray is well-positioned to continue to pioneer the development of the global medical cannabis market and to become a leader in the adult-use cannabis market in Canada.”

Tilray’s current market capitalization of $4.8 billion makes it the third largest cannabis company after Canopy Growth Corp. and Aurora Cannabis Inc. Canopy Growth currently has a market value of $12.4 billion and reported revenue of about $26 million in Q2.

It’s not uncommon for companies in emerging sectors to generate high valuations despite little profits. For example, electric car maker Tesla Inc. loses hundreds of millions of dollars every quarter and boasts a market value of $55 billion.

Tilray’s revenue is forecast to grow considerably over the coming years. Added to that is the number of deals going on in marijuana, such as Canopy Growth’s $3.8 billion deal with Corona beer maker Constellation Brands Inc., which is just one of many more tie-ups expected between the alcohol and cannabis industries.

Some analysts see Tilray as a potential target for a deal with an alcohol company to manufacture cannabis-infused beverages. Tilray’s brand portfolio, focus on clinical trials, and access to consumer data makes it an attractive target of alcohol companies, say some analysts.

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