Tilray Brands, Inc. is seeing a positive uptick in its stock price today, driven by recent developments in Luxembourg's cannabis market. The company's German subsidiary, Tilray Deutschland GmbH, has secured a tender to supply high-quality cannabis flowers to Luxembourg. This move comes as Luxembourg has recently legalized recreational cannabis use, with the government estimating sales tax revenues to exceed $15 million USD. This suggests a projected recreational sales market of over $300 million, potentially offering Tilray a significant share of this new market opportunity.
On Reddit, discussions are buzzing with optimism about the potential impact of this development. One user highlighted the significance of Luxembourg's new legal framework, stating, "Luxembourg has adopted a new framework regarding recreational cannabis... projected Rec sales over $300M, which should give Tilray a nice piece of that." This sentiment reflects a broader anticipation that Tilray could benefit from the expanding European cannabis market, particularly as Luxembourg transitions towards a legal cannabis market.
Tilray's stock is currently trading at $1.46, up 4.20% from the previous close of $1.40. Despite being just 30 minutes into the trading day, the stock has already seen a volume of 8,434,009 shares, representing 26.96% of the average daily volume of 31,283,822 shares, indicating heightened trading activity this morning.