These 3 Operators are Capitalizing on the German Cannabis Market… – Technical420

these-3-operators-are-capitalizing-on-the-german-cannabis-market…-–-technical420

2 MIN READ  •  By Michael Berger

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Earlier this week, the German cannabis market became more in focus after British American Tobacco Plc. (NYSE: BTI) (LSE:BATS) increased its exposure to the cannabis sector by investing in German cannabis startup Sanity Group GmbH.

During the last quarter, we have received several requests for information on companies that are levered to the German cannabis market. After British American Tobacco announced its investment, timing could not be any better to provide more information on the opportunity for cannabis companies in Germany.

After conducting more analysis on the German cannabis market, we noticed that companies have been reporting more revenue from the country when compared to prior years. We find this trend to be bullish for the cannabis sector and expect other countries in the European Union (EU).

As part of our recent series of articles on the German cannabis industry, we highlighted 3 companies that are capitalizing on the emerging market and believe our readers should be aware of these businesses. Over the next week, we will be publishing an in-depth article on the German cannabis market as we believe the more information that is available, the better!

  1. Earlier this week, Akanda Corp. (Nasdaq: AKAN) started to prepare for its first export shipment from its Portugal-based Holigen operation to Germany in the coming weeks. The company’s good manufacturing practices (GMP) facility will execute on a previously announced purchase agreement for 1,000 kilograms of premium cannabis flower. The cannabis will be sold to German pharmacies through the Cansativa platform which has a right of first refusal on additional cannabis from the facility and we find this to be significant.
  2. Tilray Brands (Nasdaq: TLRY) (TSX: TLRY) has significant leverage to the German cannabis market and we expect the country to account for a larger percentage of revenue in future years (or until cannabis is legal in the US). Through the acquisition of Aphria, the Canadian cannabis company significantly enhanced its leverage to the market. A few weeks ago, Tilray initiated a discussion with German regulators on recreational cannabis legalization and we expect the business to be a beneficiary of the growth of the market.
  3. Earlier this year, Aurora Cannabis Inc. (Nasdaq: ACB) (TSX: ACB) reported to have received EU- good manufacturing practices (GMP) certification for its medical cannabis production facility in Germany. We considered the granting of the certification to be a milestone for the embattled Canadian cannabis company and will be monitoring how the market plays a role in the growth of the entire business.

If you are interested in learning more about cannabis companies that are capitalizing on Germany and on the EU, please send an email to support@technical420.com with the subject “Leading EU Cannabis Operators” to be added to our distribution list.

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Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Technical420.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.

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