Tilray’s (TLRY) stock got a bump yesterday on news that it will be exporting $3.3 million worth of medical cannabis out of its Portugal facility to Germany this fall. This will be Tilray’s first shipment out of its new state-of-the-art facility.
“This is a significant milestone for Tilray as we ramp up our capacity to serve international markets and generate revenue from our EU campus through the end of 2019,” said Tilray CEO Brendan Kennedy.
“We believe our 2.5 million square feet of cultivation and state-of-the-art processing space in Europe is an important differentiator, which will enable us to reduce costs and improve margins while hedging against regulatory risk.”
Tilray inked the deal with Germany-based Cannamedical Pharma GmbH (“Cannamedical”) via its wholly-owned subsidiary Tilray Portugal Unipessoal Lda. (“Tilray Portugal”).
Cannamedical was founded in 2016 in Cologne, Germany. The privately owned company is fully licensed and GDP-certified (Good Distribution Practice) to import and distribute high-quality medical marijuana products. Cannamedical is a leading independent supplier of medical marijuana products to 2,500 clinical facilities and pharmacies throughout Germany.
“We at Cannamedical Pharma are committed to helping doctors, medical specialists and pharmacists improve their patients’ quality of life,” said Cannamedical CEO David Henn.
“Tilray’s product has passed our strict quality control standards, and we’re excited to have found a partner able to deliver medical cannabis products for use in Cannamedical’s own brands. We look forward to increasing access for patients in need across the country.”
But will this lead to profitability?
According to CEO Brandon Kennedy, the company will become profitable in Canada within the “next quarter or two,” and in Europe by the next two to three quarters.
“We’ll continue to invest in new regions and new countries, but on an existing basis in terms of our existing footprint, we see profitability within the next half year to year,” Kennedy said during an interview on Bloomberg TV.
TLRY jumped 8.9% following the CEO’s comments. However, throughout the previous five sessions Tilray had lost 36% after reporting a larger-than-expected loss of $17.9 million before interest, taxes, depreciation and amortization.
Kennedy emphasized that the cannabis industry is still in a growth phase and “you’d be constraining yourself if you were focused on profitability at this point.”
Tilray is a worldwide pioneer in the research, cultivation, production and distribution of cannabis and cannabis products. The company currently serves tens of thousands of patients/consumers throughout 13 countries spanning five continents.
Tilray has cultivated a track record as a company committed to making pharmaceutical-grade medical marijuana products available to patients across the globe. They were the first licensed medical marijuana producer to export medical cannabis from North America and import medical cannabis products into the EU in 2016. The company was also the first to import cannabis oils into the German market in 2017.
“We are pleased to enter into an agreement with a partner who shares Tilray’s commitment to product quality and safety and patient access,” said Tilray’s Managing Director of Europe, Sascha Mielcarek. “This initial shipment will be the first of many from our EU Campus in Portugal to Germany as well as other European and international markets.”
Tilray Inc. Cl 2 (TLRY) was trading at $29.22 per share on Thursday morning, down $3.12 (-9.65%). Year-to-date, TLRY has declined N/A%, versus a 9.39% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of ETFDailyNews.com.
About the Author: Eric Bowler
Eric Bowler is an accomplished journalist providing in-depth insights for more than two decades. Over the past several years his focus has been on the marijuana industry, with a special interest in cannabis growth stocks. His daily coverage of the industry keeps him on top of the key trends with the goal of helping investors make well-informed decisions.