Tilray Brands Inc. (NASDAQ: TLRY) disclosed on Monday that its subsidiary in Germany has secured the first new cannabis cultivation license under the nation’s revised regulations, marking a significant step towards expanding its presence in Europe’s biggest economy.
This license, issued to Tilray’s Aphria RX unit, permits the cultivation and production of “an extensive commercial assortment of medical cannabis,” according to the company’s press release. This development coincides with a surge in demand for medical marijuana in Germany, spurred by legislative changes earlier this year that have opened up this lucrative market.
“We are delighted to obtain this license as it enhances the availability of top-quality medical cannabis produced in Germany and allows us to broaden the variety of treatment options for patients,” said Denise Faltischek, Tilray’s chief strategy officer, in a statement.
Tilray reports that this new license will enable Aphria RX to quintuple its production capabilities and increase the number of cannabis strains from three to 31. The expansion was planned with insights from Kevin Anderson, a well-known cannabis expert from Broken Coast Cannabis. Tilray acquired Broken Coast in 2018 for $217 million, back when it was still part of Aphria.
Since 2019, Tilray has established its presence in Germany, starting when Aphria RX received its initial cultivation license from the German Federal Institute for Drugs and Medical Devices. Early involvement has positioned Tilray as a dominant force in what is considered one of the most promising medical cannabis markets in Europe. The recent enactment of the MedCan-G Bill in February is attributed to increasing the number of patients and healthcare providers participating in the program.
While Tilray has not released specific financial forecasts regarding this new license, the firm asserts that it is “strategically poised to maximize the market potential.”
However, opinions on the rapid growth potential of Germany’s cannabis market are mixed among industry experts, with some companies moderating their expectations for swift market expansion.
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