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Currently, Tilray is exporting to several countries around the world, including Croatia, Chile, and Australia, among others. Brendan Kennedy, CEO of Seattle-based private equity firm Privateer Holdings, which owns Tilray, echoed these sentiments, stating that “the biggest opportunity is in Germany”. And many others besides Tilray have realized this, including but not exclusively: Canopy Growth Corporation, Harvest One Cannabis Corp., Maricann Group Inc., Cronos Group Inc., and Aurora Cannabis Inc. Others such as True Leaf Medicine International (CSE:MJ, FRA:TLA), NeutriSci International (TSX-V:NU; OTCMKTS:NRXCF; FRA:1N9), Naturally Splendid Enterprises (TSX-V:NSP; FRA:50N) and most recently, THC BioMed International Ltd (CSE:THC; OTCMKTS:THCBF; FRA:TFHD) have all started to tap into this market in Germany too to export their products by entering into distribution agreements with experienced and well-connected local distributors. Lastly (and possibly interestingly), companies such as Matica Enterprises (CSE:MMJ; OTCMKTS:MQPXF; FRA:39N), are traded on the Frankfurt stock exchange, but yet to announce any plan on expansion into that market. That’s a whole lot of Canada poised to capitalize on the German market until it becomes self-sufficient on its own to meet demand, which may take some time.
Maricann Group Inc. (FRA:75M; CSE:MARI)
Maricann announced on Jun 14, 2017 that it secured $42.5 million in non-dilutive financing to increase production in Germany, and fully fund its plans in Germany. Its raise was one of the biggest in 2017.
Along with ramping up Canadian operations with massive expansion of its Langton, Ontario facility in anticipation of the legal recreational market here in Canada, it plans to capitalize on the larger German market and be one of the first movers there.
The company recently set up a new subsidiary called Maricann GmbH, appointed an Advisory Board with considerable knowledge and experience in Germany (and globally), and put a reservation agreement on large facility in Dresden, Germany for €3.4 million and is configured ideally for cultivation already. All told, the facility will cost approximately six million euros after retrofitting is complete, a bargain compared with their competitors, who are spending “north of $70 million for facilities with less than 1/3 the footprint” of Maricann’s location. Initial plans call for approximately 150,000 square feet of cultivation capacity with the facility. CEO Ben Ward stated recently that “all we have to do is install the tables, the fertigation system and lights and we will be operational”. In a June 14, 2017 Benzinga article, Ward states that it will be ready in two weeks (June 28th approximately), and are just waiting on the government approval process.