Following Germany’s major changes to its marijuana regulatory framework in April, Canada’s renowned cultivator Aurora Cannabis Inc. (TSX: ACB) (Nasdaq: ACB) has augmented its license package in the European nation.
Aurora has received a research and development permit enabling grow trials with up to seven new cultivars. This work will be completed at the cultivator’s facility in the German town of Leuna.
Secondly, the company now has an enhanced cultivation license. It will enable Aurora to produce an additional product, which has not been specified yet.
Europe’s economic powerhouse legalized personal possession of recreational pot on Apr. 1, enabling citizens to legally carry up to 25 grams and cultivate personal plants. Now, the country is slowly establishing a distribution framework, beginning with the introduction of social clubs carrying modest quantities of grass for patrons.
“We thank the German government for its continued investment in the growth of medical cannabis, made possible by decriminalization,” Michael Simon, President of Aurora Europe GmbH, said.
These recent changes could significantly reduce the stigma associated with the plant, thereby promoting increased use of medical bud nationwide. Although it’s been legal since 2017, greater quantities available in the German market due to the heavily relaxed regulations may reduce its price substantially too.
“The company supports Germany’s investment in meaningful regulatory reform, and anticipates it will have broader effect on the expanding acceptance of medical cannabis and future modern frameworks across Europe,” Aurora said.
Germany’s cannabis market is expected to be worth over C$2.5 billion by next year.
Read more: German legalization prompts Organigram to invest millions in Berlin’s Sanity Group
Read more: Germany votes to legalize recreational cannabis possession, distribution framework needed
Tilray Brands gets new German license too
Another major operator has benefitted from Germany’s new found acceptance for weed.
Tilray Brands, Inc. (TSX: TLRY) revealed earlier this week that it was the first company to receive a German commercial medical cannabis license.
It will enable the company’s Aphria RX facility to increase its rate of production approximately five-fold and grow up to 28 more cultivars than it was previously permitted to.
“We are thrilled to receive this license as it will provide greater access to some of the highest quality medical cannabis produced in Germany,” Tilray’s Chief Strategy Officer Denise Faltischek said, “and enable us to expand the range of treatment options available to patients.”
rowan@mugglehead.com
