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TerrAscend Receives EU GMP Certification, Starts German Distribution

TerrAscend Receives EU GMP Certification, Starts German Distribution

Canadian cannabis company Terrascend Corp (OTC: TRSSF) is expanding into Europe with the receipt of GMP certification and a new distribution agreement. 

What Happened

The company said the EU Good Manufacturing Practice certificate was awarded to its Mississauga, Ontario facility in accordance with the rules related to medicinal products in the European Union. 

In addition, Terrascend Corp. announced a distribution agreement with German pharmaceutical wholesaler iuvo Therapeutics GmbH. 

Why It's Important

Europe has the potential to become one of the largest cannabis markets in the world.

By 2028, the legal cannabis market in Europe could reach $123 billion, as most countries within the EU are expected to legalize at least medical marijuana within the next five years, according to Arcview and BDS Analytics.

In this way, Europe represents an attractive opportunity for many companies, particularly Canadian ones looking to grow their economies of scale and expand into new countries in order to boost their growth amid concerns about the limited size of their home market.

A number of companies such as Tilray Inc. (NASDAQ: TLRY) and Aurora Cannabis Inc. (NYSE: ACB) already have developed facilities in the European Union and established other operations. Last month, Aphria Inc. (NYSE: APHA), Aurora and Wayland Group Corp (OTC: MRRCF) were awarded cultivation and distribution licenses in Germany. 

What's Next

Terrascend Corp. said it expects to start distributing through iuvo Therapeutics later this quarter. 

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