As political attitudes towards cannabis begin to change, multi-million dollar deals are starting to emerge in what is a nascent market.
Colventures LLC, who have recently engaged WGP Global as their sole strategic partner, are at the forefront of this revolution.
Focusing on the development and export of top-grade CBD and other cannabis derivatives, Colventures LLC have a highly-educated and experienced technical team who have registered 699 varieties of cannabis to allow the company to offer a full range of cannabinoids.
The proprietary source of their cannabis plants from which oil is extracted is an indication of quality that enhances its value in the market.
The CBD oils that Colventures will extract will be derived from their organic cannabis, grown on substrates rich in nutrients, without chemical pesticides or fertilizers. Their adherence to GMP standards also guarantees safe products for human and pharmaceutical use.
Massachusetts-based Curaleaf Holdings, the world’s largest cannabis retailer, have also dipped their toe in the water and agreed a $300m-plus deal which will see them buy one of Europe’s biggest cultivators of marijuana.
Curaleaf Holdings own and operate over 100 cannabis shops in 23 US states, and their belief is that many other regions will soon liberalise their political attitudes towards the drug.
A cash-and-share deal with London-based Emmac Life Sciences is said to be worth $342m ($285m upfront/$57m dependent on performance), and, along with companies such as Colventures LLC, will hand them an early advantage in the emerging market.
Technically, cannabis is still prohibited in Europe for recreational use, however, both Portugal and the Netherlands have decriminalised personal possession as long as it’s below a certain limit.
Germany, the UK and other countries have legalised it for medical use in recent years, as many governments begin to wake up to the ‘news’ that cannabis doesn’t do more harm than good.
It may still be some while away, but for the majority of European countries, a legal marketplace for cannabis should eventually become legal.
Cannabis is still illegal on a federal level in the US, however, the likes of Arizona, Colorado and California have approved its recreational and medical use.
Canada, as far back as 2018, was the world’s largest economy to legalise cannabis, and not just for medical use. Consumption for any purpose was passed by the authorities.
The European cannabis industry is three to four years behind that in North America by conservative estimates, but to put things into some sort of perspective of how much medical science is driving growth, Emmac produced approximately 10 tonnes of cannabis in Portugal for medical use in the UK, Germany and Italy.
Recreational use isn’t even considered at present, but with Europe having twice the population of a US market where sales reached $17.5bn last year, the growth potential is obvious.
Curaleaf’s sales along exceeded $653m last year, with 90 percent coming from medical cannabis. So far in 2021, recreational use has accounted for 60 percent of sales, and once Aphria and Tilray complete their merger, they belief $700m of sales for that company is achievable.