Tilray: As Germany moves closer to legal cannabis, the rest of Europe may follow
Germany is the catalyst that could open up a whole continent of medical and recreational cannabis revenue for Tilray (TLRY) – Get the report from Tilray, Inc..
The company has paved the way to take advantage of changing laws in Europe.
Currently, regulatory approaches to cannabis among European countries vary widely, according to PharmExec.com. But Germany is the key, according to Tilray executives.
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“With the planned legalization of recreational cannabis in Germany, we believe other EU countries will follow suit,” CFO Carl Merton said on the second quarter earnings conference call. ‘exercise.
Tilray has growth facilities in Germany and Portugal. And the company has held talks with German officials, hoping that recreational cannabis will become legal in the country, which has a population of nearly 85 million.
Germany’s new coalition government has agreed to legalize adult recreational use. If it comes to fruition, Germany would become the largest federal legal market in the world.
“It will probably take maybe 12 to 18 months before that happens. And you will potentially see Portugal and other countries moving forward because of the tax,” Managing Director Irwin Simon said during the call for results.
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Tilray is currently the only company supplying the German government with domestically grown medical cannabis.
Its grow facility in Germany also has additional capacity to support entry into the recreational market once that use is legalized, the company said in its latest earnings report.
Tilray estimates the European market at potentially $ 1 billion for the company, thanks to its cultivation facilities on the continent.
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For the second quarter ended Nov. 30, Tilray said international cannabis revenue was $ 13.7 million, which is almost 20% of its total cannabis-related revenue for the period.