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Hi all, this post goes to show why I'll be balls deep in $TLRY at the end of this year.
From their website:
Tilray sells cannabis oil, dried whole flowers, vape pens and edibles in e.g. canada and sells medical cannabis in conjunction with Novartis' Sandoz subsidiary worldwide in legal-medical markets. Tilray also focuses on cannabis research. Find out later on why that's important for the catalyst.
With 2100 employees lead by HAIN founder Erwin Simon, the following results for the first fiscal quarter were obtained:
Considering their main income comes from cannabis retail stores in Canada which were closed until June, this is remarkably impressive.
Let's have a closer look at one specific market regarding the catalyst: The European Union, especially Germany:
Tilray's cultivation space spans over 250000sqm in Canada, but also in Portugal.
While Tilray's products in the US and Canada are of recreational and medical character, their EU presence focuses on medical cannabis, research and strong cooperation with doctors and research institutes across the EU. This focus on evidence-based medical cannabis production makes sense not only because no single EU country legalized cannabis yet, but also because the EU medical regulations call for evidence-based medicine.
Tilray's making progress in the EU:
..but also in Germany:
Tilray is recognizing the strong opportunity which poses itself in the EU, see:
If you made it this far, you can see the focus shift onto the EU of this bullish thesis very clearly. Here's why:
The amount of countries legalizing cannabis is growing strongly. As of today, 181.5 million citizens of this planet have legal access to recreational cannabis.
While medical use of cannabis is widespread, legal recreational use concentrates mainly on north america and south africa.
This graph from June 2021 goes to show that the global legal cannabis market is set for growth and this is not considering new countries legalizing recreational cannabis use. Well guess what, these numbers are about to skyrocket:
Jep, right. EU's largest country by citizens will be legalizing cannabis in the next year. The new coalition, especially the Greens pushed for it during the last election and it will be reality soon. What that means is that the legalized world population will rise by 80 million, around 40%!
This week's Reuters survey stated that the cannabis legalization in Germany opens a market of $5.34 billion per year and creates 27,000 new jobs.
Looks like the cirumstances are set for cannabis companies, but why do I choose Tilray?
Do you guys remember this dude?
Right, that is former german foreign minister and vice-chancellor Joschka Fischer. Left-wing militant in his youth, later on the leading figure for the German Greens. Fischer told media already in the 90's that he consumed cannabis with a positive outcome ( 😀 ). And it is this ex-politician who began advising large companies in 2008. Fischer was famously involved in the nabucco pipeline project and is known to have his late life financed by those big companies he advises.
Well, guess who is one of ten members of Tilray's 2018 foundes international advisory board?
It's Joshi's party that will be back in the government after 2005 that is the legal factor in legalizing recreational cannabis. It might be possible that the federal department controlling the cannabis legalization process might go to the Greens. Favoritism is not seldomly heard of in Germany's politics. That's why I am really bullish on Tilray.
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Published by Reuters (Reuters) – A man was ...