The Canadian cannabis sector continues to reap the benefits of the legal head start that its publically-traded companies have over their international competitors—and now they’re making their move to spread their business outward to burgeoning markets around the world.
While Canada has sprouted several massive growing operations, and fostered multiple multi-billion-dollar companies, the market is witnessing these companies branching out.
These companies include Aphria Inc. (TSX: APH) (OTC: APHQF), Canopy Growth Inc. (TSX: WEED) (OTC: TWMJF), The Supreme Cannabis Company, Inc. (TSX.V: FIRE) (OTC: SPRWF), Village Farms International, Inc. (TSX: VFF) (OTC: VFFIF), and The Yield Growth Corp., which is a partially-owned subsidiary of Glance Technologies (OTC: GLNNF) (CSE: GET).
Canadian companies are participating in all types of markets, from European countries like Germany, Denmark, and Italy, as well as in developing markets such as Jamaica, and Lesotho. And despite some threats coming from US Attorney General Jeff Sessions, there is still quite a bit of potential for the US market as well.
Even though the Canadian market is spearheading the legal cannabis revolution worldwide, industry leaders see the massive potential in other markets, giving them reason to start branching out now.
For example, Aphria Inc. saw the value of the Italian market being potentially worth “$9 billion larger than the combination of the recreational and medical markets in Canada.”
The company’s confidence in the Italian market was so large, it paid $826 million to acquire cannabis firm Nuuvera Inc., because the firm owned one of the only seven licenses to import medical cannabis into Italy.
But cannabis products can come in many different forms, which is what The Yield Growth Corp. and its 100%-owned subsidiary Juve Wellness is banking on—Sporting a total of 84 products to be sold in Canada and International markets, of which 42 of the products are set to be potentially cannabis infused.
Aphria and The Yield Growth Corp. are not the only Canadian-based company working towards getting an international head start. They’re being joined by Canopy Growth Inc, The Supreme Cannabis Company, Inc., and Village Farms International, Inc.
MAPLE LEAF INVASIONS
In an interview with Financial Post, managing director of Canopy Growth Inc.’s German subsidiary Spektrum Cannabis GmbH, Pierre Debs, talked about Canada’s role for the world of legal cannabis, stating:
“All eyes are on Canada right now, not only for what’s coming (with recreational legalization), but also because Canada has basically defined the standards on how to do a medical cannabis industry.”
Debs expects to import up to 200kg of dried Canadian cannabis flower monthly into Germany by the end of 2018—rising from the current 150kgs per month.
Canopy has begun work on converting an orchid greenhouse in the central Danish city of Odense, and is building eight greenhouses outside of the Jamaican capital of Kingston for export to other Caribbean counties.
More recently, Supreme Cannabis recently went far off the typical map, to the Kingdom of Lesotho, for an opportunity to bolster its supply chain for cannabis oils.
Through a C$10 million investment, Supreme Cannabis acquired a 10% equity interest in licensed medical cannabis cultivator and cannabis oil products manufacturer Medigrow. The cannabis oil produced by Medigrow in Lesotho, and will be exported to Canada and other international markets.
Village Farms has an option down the road, should laws loosen in the United States, as it is not primarily a cannabis grower. The long-time greenhouse grower has massive operations for vegetable growing in four locations in North America, including in the state of Texas and in Mexico—However, it’s in their flagship location in Delta, BC, in Canada, Village Farms has moved towards cannabis production, through a partnership with Emerald Health.
While each of these companies is zeroing in on the potential for cannabis plant products, primarily, it’s The Yield Growth Corp. through its Juve Wellness subsidiary that are branching out with ready-made hemp-infused products set to sell to the world.
THE YIELD GROWTH CORP’S JUVE WELLNESS GOING INTERNATIONAL
Growing beyond its payment app strengths, The Yield Growth Corp. is looking to make an even bigger splash on the world’s stage, through the new products being rolled out through its Juve Wellness subsidiary.
The Juve Wellness brand has international contracts in place for several products that include hemp oils, including face moisturizers, organic hand cleaner, massage oils, deodorants, lip balms, and lip glosses.
Boasting a total of 42 non-cannabis products, and 42 potential cannabis-infused products, Juve is not short on its marketing potential on the world stage.
As the majors work to get their medical marijuana plants and products abroad, there’s a higher likelihood that hemp oil products, such as Juve’s Vitalize, Balance, Align (Vata, Pitta, Kapha) products will have a broader mainstream acceptance in countries still warming up to the idea of cannabis as medicine.
Already, Juve has submitted 25 products to Health Canada for approval. As the company gains experience through the approval process, the market can expect several more developments to come from this burgeoning brand.
Juve is banking on cannabis’ strength as a remedy and effective medicine for pain, digestive disorders, dysentery, sexual prowess, and many other medical uses known among the ancient Ayurvedic medicinal traditions that the company’s products adhere to.
Expect Juve products to be sold on store shelves across several different markets, not just in Canada, in the near future.
COMPARABLES
Aphria Inc. (TSX: APH) (OTC: APHQF)
Aphria is one of Canada’s lowest cost licensed cannabis producers, specializing in the production, suppy, and sale of medical cannabis. The company offers sativa, indica, and hybrid medical marijuana products, as well as cannabis oils. It also provides support services in the form of medical consultations, group therapies, and rehabilitation to veteran and first responders. The company sells its products through its online store or phones, as well as engages in the wholesale shipping of medical marijuana plant cuttings and dried buds to other licensed producers. Aphria Inc. is headquartered in Leamington, Canada.
Canopy Growth Inc. (TSX: WEED) (OTC: TWMJF)
Owners of the Tweed brand of cannabis products, Canopy Growth is a multi-licensed, geographically diverse marijuana producer, described as “one of the world’s — and Canada’s first — premier exporters of marijuana” by the Financial Post in 2016. Canopy is the parent company of licensed cannabis producers, Tweed Inc., Tweed Farms Inc., Bedrocan Canada Inc., as well as newly acquired Mettrum Health Corp. Canopy currently has a combined growing platform of over 665,000 sq. ft. of production space. It was also the first federally regulated, publicly traded cannabis producer in North America, and the first billion-dollar cannabis corporation. Canopy Growth was founded in 2014, and is based in Smith Falls, Ontario.
The Supreme Cannabis Company, Inc. (TSX.V: FIRE) (OTC: SPRWF)
Supreme Cannabis is a Canadian publicly traded company committed to becoming a leading cultivator and distributor of sun grown cannabis through its wholly-owned subsidiary 7ACRES. 7ACRES is a federally licensed producer of medical cannabis pursuant to the ACMPR operating inside a 342,000 sq. ft. Hybrid Facility. The Supreme Cannabis Company, Inc. was incorporated in 1979 and is headquartered in Toronto, Canada.
Village Farms International, Inc. (TSX: VFF) (OTC: VFFIF)
Village Farms International, Inc., together with its subsidiaries, produces, markets, and distributes greenhouse-grown tomatoes, bell peppers, and cucumbers in North America. Village Farms International, Inc. markets and distributes its products under the Village Farms brand name to retail supermarkets and fresh food distribution companies, as well as produced under exclusive arrangements with other greenhouse producers. Village Farms International, Inc. was founded in 1989 and is headquartered in Delta, Canada.
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