Tilray Receives First New Cannabis Cultivation License in Germany Under New Regulations

Rhea-AI Summary

Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY) has announced that its German subsidiary, Aphria RX GmbH, has received the first new cannabis cultivation license under Germany's new Cannabis Act (MedCanG). This license allows Aphria RX to increase production by approximately 5 times and introduce new strains, enhancing patient access across Germany.

Key points:

• Aphria RX can now cultivate and manufacture a broader range of medical cannabis
• The facility can expand from 3 to 31 approved strains
• Aphria RX was designed with guidance from Kevin Anderson of Broken Coast Cannabis
• The new license positions Tilray to capitalize on Germany's growing medical cannabis market

This development is expected to significantly improve access to high-quality, German-produced medical cannabis for patients nationwide.

Positive

• Received first new cannabis cultivation license under Germany's MedCanG
• Allowed to increase production by approximately 5 times
• Can expand from 3 to 31 approved cannabis strains
• Positioned to capitalize on Germany's growing medical cannabis market
• Facility designed with guidance from renowned cannabis grower of Broken Coast

Negative

• None.

Insights

Financial Analyst

The new cultivation license for Tilray’s Aphria RX in Germany is a significant development with clear financial implications. This license allows for a fivefold increase in production capacity, which translates directly into higher potential revenue streams. The ability to cultivate and distribute a broader range of cannabis strains can attract a wider customer base and improve market penetration, especially as the demand for medical cannabis continues to rise in Germany.

From a financial standpoint, expanding the product portfolio to 31 strains from just three previously can diversify risk and reduce dependency on fewer high-performing strains. This strategic move can stabilize revenue by mitigating the impact of any single strain's underperformance. Furthermore, the premium craft grower status of Aphria RX, guided by an expert like Kevin Anderson, can justify higher pricing, boosting profit margins.

Investors should view this news as a potential catalyst for Tilray’s stock, primarily because the increased production capacity and expanded product offerings are likely to translate into higher sales and profitability in the coming quarters.

Market Research Analyst

The German medical cannabis market is expanding rapidly, driven by regulatory changes under the MedCan-G Bill. Tilray’s receipt of the first new cultivation license positions the company favorably within this growing market. The increasing number of patients and prescribers indicates rising acceptance and demand for medical cannabis, suggesting a positive market sentiment.

Tilray's ability to leverage an expanded genetic portfolio aligns well with market trends favoring variety and specialized strains. This strategic advantage can help Tilray capture a more significant share of the market by meeting diverse patient needs. Additionally, the company’s established reputation and expanded capacity will likely enhance its competitive positioning against other market players.

Long-term, Tilray’s leadership in the German market could serve as a case study, facilitating easier entry into other European markets with emerging medical cannabis regulations. This broader market strategy can provide sustained growth opportunities for the company over time.

Medical Research Analyst

From a medical perspective, Tilray's expanded cultivation capabilities in Germany mean better access to high-quality medical cannabis for patients. The ability to grow 31 different strains allows for more personalized treatment options, catering to specific medical needs and conditions. This is important in medical cannabis, where different strains can have varied therapeutic effects.

Moreover, the expertise of Kevin Anderson in guiding the cultivation process ensures that the quality of cannabis produced will likely be high, maintaining consistency and potency, which are critical for medical use. The expansion can also facilitate more comprehensive clinical trials and research, further establishing medical cannabis as a viable treatment option for numerous conditions.

For patients, this development signifies improved access to a broader range of treatment options, potentially leading to better health outcomes. In the long run, Tilray's advancements in cannabis cultivation could contribute significantly to the body of evidence supporting the medical use of cannabis, influencing global medical cannabis policies and practices.

Tilray's Aphria RX Facility in Germany Granted New Cannabis Cultivation License, Allowing for ~5x Production Increase and New Strains to Enhance Patient Access Across the Country

Aphria RX Designed with Guidance from Renowned Cannabis Grower of Broken Coast Cannabis

NEUMÜNSTER, Germany, July 22, 2024 (GLOBE NEWSWIRE) -- Tilray Brands, Inc. (“Tilray”) (Nasdaq: TLRY; TSX: TLRY), a global leader in cannabis research, cultivation, production, and distribution, today announced that its Germany cannabis cultivation facility, Aphria RX GmbH (“Aphria RX”), has received the first new cannabis cultivation license issued under MedCanG, Germany’s new Cannabis Act. The new cannabis cultivation license allows Aphria RX to cultivate and manufacture a broad commercial range of medical cannabis, providing patients with better access to high-quality medical cannabis produced in Germany.

Tilray’s Chief Strategy Officer and Head of International, Denise Faltischek, commented: “We are thrilled to receive this license as it will provide greater access to some of the highest quality medical cannabis produced in Germany and enable us to expand the range of treatment options available to patients. We appreciate the trust that the German Government has placed in Tilray, and we are proud of our team for their groundbreaking work in medical cannabis cultivation and patient care.”

In May 2019, Aphria RX was awarded the most comprehensive license for the cultivation of medical cannabis in Germany from the German Federal Institute for Drugs and Medical Devices (the "BfArM"), having been awarded a total of five lots (1,000 kgs) and was the only licensed producer in Germany with permission to grow all three strains of medical cannabis approved by the BfArM.

The introduction of the MedCan-G Bill in Germany has led to a significant increase in the number of patients and prescribers for medicinal cannabis. With the new cannabis license, Tilray is well-positioned to take full advantage of the market opportunity. Additionally, Aphria RX can now fully utilize and maximize its growing capacity while also expanding its genetics to a total of 31 approved strains from the previously approved three strains. Originally designed with guidance from Kevin Anderson, the renowned cannabis grower of Broken Coast, Aphria RX can now replicate the growing conditions at Broken Coast, maximizing Aphria RX's potential as a premium craft grower.

As a leader in the field of medical cannabis research and production, Tilray strongly believes that these developments will have a positive impact on the health and well-being of many patients in Germany. We look forward to exploring the path opened by the German government and all stakeholders in promoting improved access to medical cannabis, and the opportunity to optimize care for our patients.

About Tilray Medical

Tilray Medical is dedicated to transforming lives and fostering dignity for patients in need through safe and reliable access to a global portfolio of medical cannabis brands, including Tilray, Aphria, Broken Coast, Symbios, and Navcora. Tilray Medical grew from being one of the first companies to become an approved licensed producer of medical cannabis in Canada to building the first GMP-certified cannabis production facilities in Europe, first in Portugal and later in Germany. Today, Tilray Medical is one of the biggest suppliers of medical cannabis brands to patients, physicians, hospitals, pharmacies, researchers, and governments, in over 20 countries and across five continents.

Further information can also be found at www.tilraymedical.de

About Tilray Brands 

Tilray Brands, Inc. (“Tilray”) (Nasdaq: TLRY; TSX: TLRY), is a leading global cannabis lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people's lives for the better – one person at a time – by inspiring and empowering a worldwide community to live their very best life, enhanced by moments of connection and wellbeing. Tilray’s mission is to be the most responsible, trusted and market leading cannabis consumer products company in the world with a portfolio of innovative, high-quality, and beloved brands that address the needs of the consumers, customers, and patients we serve. A pioneer in cannabis research, cultivation, and distribution, Tilray’s unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.

For more information on how we open a world of wellbeing, visit, Tilray.com and follow @Tilray on all social platforms.

Forward-Looking Statements

Certain statements in this communication that are not historical facts constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections, or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses, or current expectations concerning, among other things, the Company’s ability to commercialize new and innovative products worldwide. Many factors could cause actual results, performance, or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of Tilray and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of Tilray made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events, or otherwise unless required by applicable securities laws.

For further information:
Media: news@tilray.com
Investor Relations: investors@tilray.com

FAQ

What new license did Tilray's Aphria RX receive in Germany?

Tilray's Aphria RX received the first new cannabis cultivation license issued under MedCanG, Germany's new Cannabis Act, allowing for increased production and a broader range of medical cannabis strains.

How much can Tilray (TLRY) increase its cannabis production in Germany with the new license?

With the new license, Tilray (TLRY) can increase its cannabis production in Germany by approximately 5 times at its Aphria RX facility.

How many cannabis strains can Tilray (TLRY) now cultivate in Germany?

Tilray (TLRY) can now cultivate up to 31 approved cannabis strains at its Aphria RX facility in Germany, up from the previously approved three strains.

Who provided guidance for the design of Tilray's Aphria RX facility in Germany?

The Aphria RX facility was designed with guidance from Kevin Anderson, the renowned cannabis grower of Broken Coast Cannabis.