Tilray Brands - German Cannabis Legalization Update Cannabis Stocks Gear Up For Germany's New Market: Check Out Who's Set To Win Big
February 26, 2024 4:13 - While there are still very few medical marijuana patients in Germany, with the new regulations, there is enormous growth potential.
- Canadian exporters Tilray and Aurora, says analyst, are among the best positioned to benefit as they are already major players in Germany.
Following Germany's vote this past Friday to legalize limited cannabis possession, cannabis stocks got a significant boost before leveling out. Germany is, after all, the largest country in Europe.
Curaleaf Holdings
, the largest U.S. cannabis company by market cap, rose following the news, as did
Trulieve Cannabis Corp. ,
Green Thumb Industries and
Cresco Labs .
Tilray
and Aurora Cannabis (NASDAQ: ACB), Canadian companies that supply Germany's medical marijuana market showed mixed results…but that will soon change.
Why?
In an email to Benzinga, analyst Pablo Zuanic noted that despite online clinics and pharmacies making access easier, there are still very few medical marijuana patients in Germany — though with the new regulations, there’s enormous growth potential. He referred to Canadian exporters Tilray and Aurora as among the best positioned to benefit as they are already major players in Germany.
Take Florida As An Example
Zuanic pointed to Florida, where now more than 3.5% of the population uses medical cannabis. "If even 1% of Germans do the same, the German market could explode to €1.7 billion ($1.84 billion) by 2025! That’s 10 times the current size," he said.
"Tilray claims leadership in the reimbursed German MMJ market, and Aurora is on record saying they lead in the cash market," said Zuanic, senior analyst at Zuanic & Associates.
He added that smaller Canadian producers exporting to Germany will also see a boost as will several others that ship to Germany on a smaller scale.
"Among U.S. MSOs [multi-state operators], a Curaleaf affiliate, Curaleaf International Holdings Limited (68.5% owned by CURLF; the owners of the other 31.5% have not been disclosed) owns a German importer, Four20 Pharma, sourcing from Canadian producers and other countries," he said.
Meanwhile, High Tide Inc.
joined the chorus of publicly traded cannabis companies welcoming Germany to the legalization fold.
“We are very excited about the potential to bring our first-of-its-kind innovative discount club model to Germany, which is the world’s third-largest economy and a country with a population of over 83 million,” said High Tide's founder and CEO Raj Grover.
https://zuanic.worldflowconnect.net/opendirect/0176c2c4-ad2a-43a8-ae32-d90a3df0d0cf/240226%20Germany.pdf?token=07a73660-9328-46e2-9df8-6a8c563abaf9&extension=.pdf