Tilray initiated a roundtable on adult-use cannabis legalization in Germany
Welcome back to our weekly series, Schaeffer's Cannabis Stock News Update, where we recap what happened in the world of marijuana stocks this week, and look ahead to how the cannabis industry will continue to develop in 2022.
Here is a quick roundup of major cannabis stock news this week:
Tilray Brands, Inc. (NASDAQ:TLRY) announced the initiation of meeting with regulators on adult-use cannabis legislation being defined in Germany. The German Drug Commission presented their plan for adult-use cannabis legislation that will be part of the first draft of a bill that will be released in next few months. According to TLRY, “As a market leader in Germany and Europe, our highest priority for a successful launch of an adult-use market in Germany is to lead with the highest quality-control standards that are consistent and reliable for consumers and patients. Established quality certifications such as European Good Manufacturing Practice (EU-GMP) already enable manufacturers industry-wide to provide patients and consumers with cannabis of the utmost quality and safety.”
In other news, Tilray's Breckenridge Distillery renewed and expanded an existing distribution agreement with Republic National Distributing Company. According to Breckenridge Distillery, "This new agreement will open new doors for our award-winning portfolio and will give us full access to RNDC’s premier distribution network, setting a new stage for accelerated brand growth.” It's been a fairly ugly 12 months for TLRY, down currently 74% year-over-year. Tilray stock actually dropped 14% in just the past month.
Flora Growth Corp. (NASDAQ:FLGC) wholly-owned subsidiary, Just Brands LLC, acquired nearly all assets for the brand No Cap Hemp Co. without upfront payment. FLGC will pay sellers 10% of gross revenue from Flora Growth's sale of their products up to a maximum of $2 million. According to Flora Growth, “This transaction will allow Flora to immediately benefit from a profitable, cash flow positive and growing business. This strategic acquisition demonstrates our disciplined capital allocation approach that is consistent with both short-term needs and long-term vision as a leading global cannabis company." Flora Growth stock has fared even worse than Tilray stock over the past 12 months, down 86% year-over-year. However, FLGC is currently up 42% over the past month and things may be looking up.