Tilray Inc. (NASDAQ:TLRY) Expands Into Europe Unveils New Production And Distribution Hub
Europe is the next frontier that Tilray Inc. (NASDAQ:TLRY) has set sights on as part of its rapid expansion drive. The opening of a European Union Campus in Cantanhede Portugal has set the stone rolling as the company looks to pursue cannabis growth opportunities in the trading block.
The new campus, which will act as the hub for European operations, comes with a multi-faceted production facility made up of indoor, outdoor and greenhouse cultivation facility. It also features research labs, processing and packaging sites that the company will leverage to produce cannabis products to cater to growing demand in the region.
Tilray has invested about €20 million to get the new facility up and running to support its clinical research and product development efforts. The facility is to employ 100 people at the start, expected to double before the end of the year.
The opening of a European headquarters comes on the heels of the company completing its first successful outdoor harvest last year. The company has since achieved another milestone having harvested its first greenhouse cannabis product early this year.
Tilray expects multiple harvests throughout the year as it also continues to push for a GMP certification that will allow it to start supplying patients in the Union with cannabis products.
“We’re thrilled to celebrate another milestone as we continue to expand our global presence and pioneer the future of the cannabis industry. […]We’re looking forward to utilizing Tilray’s EU Campus to serve the European Union medical cannabis markets with high-quality, pharmaceutical-grade medical cannabis products,” says Brendan Kennedy, Tilray CEO.
Australia Clinical Studies
The opening of a European Campus follows the confirmation that Tilray will support two clinical studies in partnership with the Murdoch Children’s Research Institute in Australia. The study seeks to evaluate the feasibility and acceptability of a larger randomized placebo-controlled trial of cannabis extracts.
The study will also analyze the use of cannabis to reduce Severe Behavioral Problems in Pediatric patients. The studies in Australia underscores Tilray’s commitment in advancing cannabinoid-based science through clinical research and development programs.
In addition to enhancing clinical research and development programs, Tilray is also increasingly expanding its manufacturing capacity to address a huge market opportunity.
The Company’s newly acquired entity Natura Naturals has secured a processing license that paves the way for it to start producing a wide range of cannabis products for the Canadian market. The processing license should go a long way in strengthening Tilray processing footprint
Even on Tilray expanding its footprint into new markets as well as increasing its production capacity, its share price has continued to edge lower, after coming under pressure late last year. The stock is already down by more than 20% in contrast to the broader cannabis sector turning bullish in recent months.
With the stock currently trading in a steep downtrend, it is still unclear as to whether it will bounce back or succumb to soaring short selling pressure.