Only 0.1% of the UK has a Cannabis Prescription, Tilray Just Bought Into the Other 99.9%

Tilray Brands, Inc. (NASDAQ: TLRY) (TSX: TLRY) has acquired Lyphe Group in an attempt to strengthen its presence in the UK.

With the move, Tilray Medical – Tilray’s medical cannabis division – established its first fully vertically integrated patient-centric medical cannabis platform in the UK, from production to patient care, according to a press release. The company boosted digital patient access, clinical services, and pharma distribution.

Lyphe Dispensary has dispensed roughly 150,000 units to date, while Lyphe Clinic has treated over 16,000 patients, Tilray said on Wednesday.

The company said it plans to utilize CC Pharma’s purchasing strength to supply medications through the Lyphe platform.

Rajnish Ohri, President, International at Tilray Brands, expects the business to be accretive in 2027.

“This acquisition marks an important step in the continued expansion of Tilray Medical as a global healthcare platform,” Ohri said. “By integrating Lyphe Group’s clinical and dispensing expertise and digital patient access with our established pharmaceutical distribution capabilities, we are enhancing our ability to serve patients across the UK.”

Zuanic & Associates estimates the UK medical cannabis market is already running at over $300M annually, with only 0.1% of the population currently holding a prescription. That ceiling is precisely what makes the asset attractive: Tilray is buying its position in a market with room to grow.

Tilray Raises Growth Capital With $180M ATM Program After Record Quarterly Revenue

Tilray simultaneously announced that it has filed for an at-the-market equity program that would allow it to raise to $180 million by selling new shares over time. The company said it will use the proceeds to increase financial flexibility and support investment in its global beverage business.

The ATM program will be managed by Jefferies LLC, TD Securities (USA) LLC, and Roth Capital Partners LLC.

The news comes on the heels of the company’s third-quarter earnings report, which revealed record quarterly revenue of $206.7 million, representing a year-over-year increase of 11%, and record gross profit of $55 million, up 6% over the same period, driven by growth across key segments. Net loss improved $25.2 million compared to $793.5million net loss in the last year, while adjusted EBITDA rose 19% to $10.7 million.

TLRY Price Action

Tilray’s shares traded 1.52% lower at $6.81 per share at the time of writing on Wednesday.