Tilray stock is in the green today after the company announced that it had received a Good Manufacturing Practice (GMP) certification from the EU for its manufacturing facility in Cantanhede, Portugal.
Tilray Stock Pops on Portuguese Approval
The GMP certification is a necessity for a company to be able to export medical cannabis into most European markets, and in order to be approved, Tilray (NASDAQ:TLRY) must show that its facilities produce both high-quality results and consistency in all manufacturing procedures. This is the second GMP certification for Tilray Portugal and will allow the company to export products, such as dried flower and oils, from Portugal to international markets with legal medical cannabis regulations. Tilray stock has gained 5.5% following the announcement.
Brendan Kennedy, Tilray CEO, said, “We are pleased with the continued momentum of our growth strategy across Europe with this additional GMP certification for Tilray’s EU campus in Portugal. This will enable us to export a greater range of medical cannabis products to international patients, partners and markets. Our international strategy is an important component in driving profitability and long-term shareholder value.” Tilray stock is currently trading for $18.19.
Tilray Portugal received its first manufacturing license and GMP approval in May 2019, which allowed the firm to cultivate and export dried cannabis as active substances to be used as starting materials in the production of other cannabis products. In August, Tilray stock popped 7% after the company completed its first export from its Portuguese facility to Germany, which was the largest inner European bulk shipment of medical cannabis to date. Today’s certification allows Tilray to export medicinal cannabis and oil as finished medical cannabis products.
Tilray stock isn’t the only Canadian beneficiaries of a rapidly expanding European market. Last week, Aurora stock was in the green after Aurora Cannabis (TSX:ACB) (NYSE:ACB) announced that it has received EU GMP certification for its Bradford, Ontario facility. Analysts believe that the European cannabis market could be worth a massive €123 billion by 2028, so it’s no surprise to see Canadian firms leverage their established expertise to gain an advantage in the burgeoning market.
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