Canada's Tilray Inc. (TLRY) has been given permission to export medical cannabis flowers for German patients.
In a press release, the marijuana research, production and distribution specialist said it now has clearance to sell its cannabis extracts in German pharmacies after receiving the green light from regulators in Canada and the largest EU country.
Tilray, which already has partnerships in place with local pharmaceutical wholesalers NOWEDA, GEHE, Alliance Healthcare, Pharma Privat, Phoenix and its logistics partner Paesel + Lorei, added that its securing of the permits make it the first and only medical cannabis company to offer both flower and oil medical cannabis products to the German medical market.
“Today’s announcement marks another milestone for Tilray as we expand operations in the European Union,” said Brendan Kennedy, the company’s CEO. “We are proud to be able to offer access to differentiated high-quality, pharmaceutical-grade medical cannabis products to patients in need.”
Tilray isn’t the only cannabis company keen to expand in Europe. Canopy Growth Corp. (CGC) and Aurora Cannabis Inc. (ACB) have also been signing export deals with European governments, buying local companies and opening production facilities in the region, reported Reuters, as countries across the continent begin approving marijuana for medical use.
Tilray, which in July became the first pure-play marijuana firm to list its shares on a major U.S. exchange, has emerged as one of the world's most popular pot stocks in recent months. The company’s shares continue to surge, despite persistent warnings from short-seller Citron Research that its valuation is on par with “bitcoin mania.” (See also: Marijuana Stocks: Citron Fails to Kill Buzz.)
In a research note on Wednesday, reported on by Investors.com, Citron claimed that Tilray will need to raise more cash to finance its big expansion goals and warned that cannabis prices could fall as competition in the sector grows. The activist short-seller also warned that the novelty of companies such as Tilray is likely to wear off as more cannabis firms go public. (See also: The Amazon of Cannabis.)
Investors shrugged off Citron’s bearish comments, sending the stock up 9.56% to $104.95 on Wednesday.