The Aphria/Tilray Merger Will Make The Combined Entity A Major European Cannabis Market Participant

Tilray has already received the necessary regulatory approvals to participate in the experiment and will export medical cannabis products from its GMP-certified facility in Portugal. We are favorable on this asset and expect it to play an important role in the growth of the business.

Tilray’s Portugal operations is comprised of a multi-faceted production facility that includes research and quality control labs, packaging, and distribution sites for medical cannabis. The facility also serves as a hub for Tilray’s clinical research and product development efforts. We consider the facility to be of strategic significance as it relates to the EU cannabis market and will monitor how it supports the growth of the business.

Tilray has established sales and distribution arrangements to supply medical cannabis through major pharmaceutical distribution channels throughout Germany and the EU. By having these agreements in place, Tilray will be able to easily expand its reach and we will monitor how revenue numbers increase over the long-term.

The Combined Company has Large Growth Prospects in the EU

In late 2020, Tilray shocked the market when it announced a merger agreement with Aphria Inc. (APHA.TO) (APHA). The combined company would be well-positioned to capitalize on the EU cannabis market and are favorable on the assets that Aphria brings to the relationship.

The combined company would be expected to take a leadership position in Canada and we are bullish on the potential synergies that could be found between the operators. Aphria has been highly focused on the Canadian and the international cannabis opportunity and we are favorable on the amount of distribution that it has in the EU.

Earlier this week, Aphria’s subsidiary, CC Pharma, entered into a strategic agreement with AMP German Cannabis Group Inc. (XCX.CN) that covers marketing for Aphria’s brand of medical cannabis products for the German market. The agreement is a collaboration contract to sell Aphria’s medical cannabis brand in Germany and we are favorable on the development.

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Brian P 2 months ago Member's comment

Buy it. Sell it. Buy it again.