Tilray & Hexo Monopoly in Germany? Germany Releases Draft For MJ Legalization | Tilray & HEXO
From Stockwatch:
Others echoed Mr. Wurth's concerns and raised their own. "A THC limit may strengthen the illicit market," warned Niklas Kouparanis, co-founder and chief executive officer of the Bloomwell Group (one of Germany's largest medical cannabis companies), in an interview with Forbes. Mr. Kouparanis also frowned at the lack of need-to-know tax details. Lastly, he fretted about the import ban, as Germany has scarce domestic production and relies heavily on imports for its medical market. "We need to allow the import of recreational cannabis," he said. "Otherwise, we cannot satisfy the need ... and we will again favour the illicit market at the legal market's expense." As far as Germany goes, however, the export idea hit a snag in late 2021, when high-profile German lawyers and politicians began flagging the risk that recreational cannabis imports could run afoul of European Union regulations. This is likely why the draft legalization proposal specifies an import ban. It may also have played a role in Curaleaf's decision last month to expand in Europe again, this time by buying a majority interest in a full-blooded German grower and distributor, Four 20 Pharma. Curaleaf now owns 55-per-cent of Four 20. It also has a "strategic pathway" to boost this interest to 100 per cent, two years after the launch of a German recreational market.
Many Canadian companies also have their eye on the German market. For the most part, they have focused on supplying medical cannabis imports -- and may be saddened if not surprised by the ban on recreational imports -- but some have taken the further step of establishing local cultivation. Tilray Brands Inc. (TLRY), up four cents to $4.49 on 2.04 million shares, harvested its first German cannabis crop in July, 2021. Aurora Cannabis Inc. (ACB), up three cents to $1.49 on 3.7 million shares, trumpeted EU-GMP certification of its German facility last May. Both Tilray and Aurora got a nod of approval today from Cantor Fitzgerald analyst Pablo Zuanic, who speculated that these domestic German facilities "could be well placed" once recreational sales begin. Despite his optimism, and the general media hubbub over a likely imminent legalization bill, neither Tilray nor Aurora saw much movement today in the market.