Weed business in Europe
- In 2018 alone, six European countries announced new cannabis legalization legislation.
- Greece and Macedonia have begun cannabis cultivation in an attempt to support an ailing agriculture industry.
- With a market of more than 740 million people and total healthcare spend of over $2.5 trillion, Europe will eventually be the largest medical cannabis market.
- Early indicators from leading cannabis programs suggest that fulfilling medical cannabis prescriptions will become a basic requirement of any public healthcare policy.
- European insurance companies in Italy, Denmark and Germany are now covering cannabis prescriptions.
- In 2018, Germany, Denmark, Malta, Greece and Italy discussed the possibility of a fully regulated adult-use cannabis market while Luxembourg has promised to introduce a regulated adult use market before 2023.
- Germany, Italy, The Netherlands, Denmark, Portugal, and Greece are the forerunners in medical cannabis production.
- Although this looks promising, the European cannabis market is still in its infancy. And the European bureaucracy will inhibit the pace of growth seen in Canada and America.
- Some of the bigger cannabis companies have been descending upon Europe to get a first-mover advantage. These include, but are not limited to, Canopy Growth Corporation (NYSE: CGC), Aphria, Inc. (NYSE: APH), Aurora Cannabis (NYSE: ACB), and The Green Organic Dutchman (OTCBB: TGODF).
there are also some lesser-known cannabis players that have significant exposure to Europe. And they’re a heck of a lot cheaper to buy than those Canadian cannabis behemoths.
The point is, sometimes it makes sense to get a little exposure to some of these smaller players in an effort to get in on the ground floor of something that could, one day, be huge. Just be cautious of your risk tolerance, and don’t bite off more than you can chew.
ICC, International Cannabis Corp could be one of these companies. It is a biotechnology company which engages in the development and production of medical marijuana. Its head quarters are in Vancouver Canada, but it has been making head roads into Europe and recently it was one of two companies granted a growers licence in Uruguay.
ICC recently bought a 49.9% stake in Wayland Group which is prominent in Canada but also Germany. ICC has operations in the U.K, Denmark, Poland, Switzerland, Macedonia, Bulgaria, Greece, Italy, Portugal, Columbia, and Lesotho. Although some of these stakes are only at the licence stages their foundation is being strongly built.
ICC’s net value is in the region of USD90M so it is a small stock in the pool of marijuana stocks. With the possible reward comes the possible risk.
As a very speculative stock, Zootly says buy. And don’t be shy to take some profits. Place a stop loss! Please.
The Zoot’s hoot on a China pharmaceutical company.
Shanghai Fosuun pharmaceutical. (Fosuun Pharam). Is one of the few healthcare care giants in China. It manufactures drugs, medical devises, and owns hospitals.
Its upcoming key growth driver will likely be the launch of two monoclonal antibody biosimilar drugs.
2018 and 2019 are investment periods for Fosuun pharma. Higher research and development, (R&D) should increase its overall competitiveness and position it as one of the leading Chinese pharmaceutical companies. -Downside risks include weaker than expected sales and drug launch failures.
Zootly says buy. Price target HKD 36.50.
Disclaimer: While we’re passionate about cannabis, this article is based on personal opinion and experience and should therefore not be considered professional financial investment
- advice. Always do your due diligence and never invest more than you can afford to lose.
