The German cannabis market is getting lots of attention this month. On May 6, Aleafia Health announced it is entering the market, news that sent ALEF stock flying. Today, The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF) announced similar news. But it has had the opposite effect on TGOD stock.
Here’s what we know.
TGOD Stock and the German Cannabis Market
On May 13, The Green Organic Dutchman said its wholly owned subsidiary, HemPoland, entered an agreement with Mediakos UG. The agreement allows HemPoland to be the exclusive distributor of CannabiGold for the German pharmacy market. As a result of this, CannabiGold, a HemPoland product, is now available for purchase across Germany. These products are also available on the e-commerce platforms of the ten largest online pharmacies in Germany.
“We are thrilled to be working with Mediakos’ experienced team as we continue to solidify CannabiGold’s position as a leading brand within the European market,” said Brian Athaide, CEO of TGOD.
Even though Athaide believes entering the German cannabis market will help TGOD’s international expansion strategy, the market doesn’t seem to have taken on the same mentality: “With a population of over 82 million, Germany plays a pivotal role in TGOD’s international expansion strategy,” Athaide commented.
According to Yahoo Finance, as of 12:42 PM EDT, TGOD stock is trading at $3.83. This puts TGOD stock down 3.77% on the TSX.
Meanwhile, on the OTC market, The Green Organic Dutchman stock is trading down 4.92%.
Do you think TGOD entering the German cannabis market is a good idea? If so, do you have any predictions for why TGOD stock fell today? Is it because several cannabis stocks are in the red today? That might be a logical explanation, considering Aleafia Health did the same thing this month and that positively impacted ALEF stock.
Let us know what you think in the comments below!
Featured image: Canva