There is a trend for large Canadian cannabis companies to look towards the European financial markets to help bolster further growth.
Bill Griffin, 19 September, 2018
Europe is projected to become the world’s largest medical cannabis market by 2028. Medical cannabis in some form is legally available to patients in more than 20 European countries.
Europe is not likely to follow the U.S. market for supply model of medicinal cannabis via dispensary style distribution. The model they are adopting is far more akin to the model used for dispensing traditional pharmaceutical drugs. In fact, it is exactly that of the traditional pharmaceutical model. For example, in Germany and the Netherlands medical cannabis patients can get cannabis flowers prescribed from their GP via their local pharmacy.
The question is, where will all this high grade consistent strength cannabis going to come from?
Canada – being one of the first countries to approve medical marijuana in 2001 – is ideally positioned. This raises the profile of Canadian companies as a legitimate investment opportunity for European investment institutions. Hence, giving them access to cash beyond the volatile retail market.
European institutional investors warming to cannabis
According to this Globe and Mail article.
“Until now, Canadian firms have had little success in drawing institutional investors because of high valuations and lingering concerns about the future and legitimacy of the industry – particularly in the United States.”
Things are changing and they highlight the case of Tilray and Canopy Growth. Tilray are in the process of building a multi-million Euro cannabis research and production facility in Portugal and export to multiple European countries. It demonstrates the rapid change of stance towards cannabis in Europe.
“Brendan Kennedy, … met with more than 200 institutions, many in Europe, ahead of the listing.
“Some of the investors who participated in the IPO, they would’ve been unimaginable eight years ago, of course, but a year ago as well,” Mr. Kennedy said.
One of those to take part, albeit with a symbolic stake, was global investment house Fidelity International, which bought around 0.15 per cent of Tilray shares across several funds.
Canopy’s latest financing deal, a $500-million convertible debt offering in June, was only pitched to institutions and drew about 60, mostly new investors, with a third coming from Europe, CEO Bruce Linton said.”
Financial services firm Canaccord Genuity – “Cana” from Canada, not “cannabis” – is one of the major players raising capital for cannabis companies. They have been involved in two groundbreaking medical cannabis conferences in London already this year and will be presenting at Cannabis Capital Conference in Amsterdam.
“A couple of months in, cannabis is like two years in most industries,” said Canaccord’s Tristan Gervais, who will be presenting at Cannabis Capital Convention. Tristan joined Canaccord Genuity in 2017 as Head of Cannabis Investment Banking Europe. He has over 15 years’ experience providing Investment Banking solutions to this unique pool of private capital across EMEA.
Cannabis Capital Convention
The Cannabis Capital Convention is inviting key players from the cannabis industry to their conference which takes place on 26 September in Amsterdam.
The Cannabis Capital Convention is committed to growth in the cannabis market. Big names from the cannabis industry will meet to inform professional and private investors on the latest developments.
The convention has CEOs and spokespersons from companies including Canaccord, Bedrocan, C21 Investments, The Green Organic Dutchman, Prohibition Partners, Cannabis Industry Europe, Grön Chocolate and more.
Register now (limited tickets left)
For collaborations, contact the Cannabis Capital Convention team via firstname.lastname@example.org