Canadian cannabis L.P.’s are looking to be in a good position on the global stage. Marijuana’s momentum is rising worldwide, as many countries legalise and develop medical cannabis programs. Many expect the trend to continue in 2019, and Canadian producers are ready.
Many of the big pot companies are courting European investment dollars. L.P.’s have also signed export deals with European governments, acquired local businesses and opened production facilities in Europe.
Canopy Growth Corp. (TSX: WEED.TO) (NYSE: CGC) is one such opportunist breaking ground in its European markets. Just as it was the first company to make a legal shipment to the U.S., Canopy hopes to lead in Europe.
The Canopy Spectrum companies
Canopy operates subsidiaries in Europe under its “Spectrum” subsdiary companies. Their goal is to simplify medical marijuana for physicians and patients. As such, Canopy’s overseas operations focus more education role than in North America.
According to an update the company provided this morning, their European subsidiaries are making headway in the U.K. and Poland.
U.K. lacks cannabis education
Following the U.K. November 1 decision to legalize cannabis for medical uses, Canopy’s aim is to educate patients and physicians on the uses of medical cannabis.
According to Dr. Mark Ware, Canopy’s Chief Medical Officer, “There is significant real-world and clinical evidence supporting the safety and effectiveness of cannabis-based medicinal products. However, due to the current regulations and lack of education about medicinal cannabis among clinicians in the U.K., there remain nconsiderable obstacles to patient access.”
He continued, “Spectrum U.K. has the expertise to simplify the U.K. medicial cannabis landscape and ensure access to cannabis-based medicial prdocuts for patients with unmet need.”
Spectrum Biomedical U.K.
Canopy’s U.K. subsidiary, Spectrum Biomedical U.K. was formed via partnership with a research company based in Oxford, Beckley Canopy Therapeutics.
Spectrum Cannabis Polska
The company’s Poland-based subsidiary, Spectrum Cannabis Polska, also announced its first successful medical cannabis import this morning. That country’s government has stated that 300,000 Polish patients could qualify for medical marijuana access.
Organigram expands hemp supply and research
Because of the country’s regulatory atmosphere, Canadian company’s are also leading in agriculture technologies and genetic research.
Case in point, Organigram Holdings Inc. (TSXV: OGI.V) (OTC: OGRMF) announced an agreement with 1812 Hemp, an industrial hemp research company this morning. The company will get hemp supply containing CBD and access to genetic research and development.
“We are proud to work with other industry-leading companies and researchers to continue to explore the potential of hemp and cannabis plants and the efficiency with which we can deliver CBD to our customers,” Greg Engel, CEO Organigram.
Hemp supply to fuel CDB production
Organigram will get about 6,000 kg of dried hemp out of the deal. The company expects to begin extracting oil from that hemp early in 2019. It will also get access to future supply.
“Maximizing the CBD yield of hemp and cannabis means being able to meet increasing consumer demand for CBD while reducing overall production costs,” said Engel
We see the future CBD market in Canada and beyond to be an incredible opportunity” explains Engel. “CBD infused products will only grow in both medical and adult recreational channels, and we are focused on establishing the right relationships and processes now to fully take advantage of that opportunity.”
Is Organigram a buy?
Although it’s unclear how the acquisition will affect shareholder value, Organigram may be undervalued for its growth prospects. The company’s production costs are still among the lowest, and it has tremendous potential for growth.
Organigram’s portfolio of legal adult-use recreational cannabis brands include The Edison Cannabis Company, Ankr Organics, Trailer Park Buds and Trailblazer.