Permissive laws on medical cannabis and CBD in several European countries convinced companies like World High Life Plc (NEX:LIFE) of the huge potential this new frontier market has. At the same time, thanks to recent business developments, Colombia is on track of becoming one of the main cannabis export countries for Europe and Latin America.
One of Columbia’s most profitable commercial operations to date is the deal between Medcann Colombia and Botaniki Lab around medical cannabis. The two companies entered a supply agreement for 600 tons of dry non-psychoactive cannabis flowers per year, equivalent to a cultivated area of more than 100 hectares, to be planted in the department of Meta.
The agreement stated that Medcann would periodically deliver the dried non-psychoactive cannabis flowers to Botaniki Lab. The latter will in turn be responsible for the extraction and marketing of cannabis derivatives. The main market will be Europe and Latin America.
“In 2020 Medcann will gradually increase its cultivated area, until it will exceed the 100 hectares needed to fulfill the contract. It has been estimated that more than 200 sustainable jobs will be generated,” said Jon Ruiz, president of Medcann Pharma.
Botaniki Lab is a manufacturer of pharmaceuticals, medicinal chemicals and pharmaceutical botanicals. Medcann was the first company in Colombia to obtain a quota for growing, processing and exporting psychoactive cannabis, which happened in August 2019.
At the corporate level, Medcann Pharma Inc is a Canadian holding company, with a presence in Colombia, through its affiliate Medicamentos de Cannabis SAS, and internationally, through its affiliate Medcann EU SL. Medcann is a global supplier of 100% organic cannabis derivatives.
World High Life is at the forefront of the European medical cannabis and CBD markets
The medical cannabis and CBD sectors have started to thrive in Europe. According to a report carried out by Prohibition Partners, the value of the medical cannabis market will reach $61 billion (€55 billion) by 2028. The huge potential has attracted cannabis companies that want to become dominant players in the lucrative European CBD and medical cannabis markets.
World High Life Plc (NEX:LIFE), a UK-based company, was founded in 2015 by two North-Americans with decades of experience under their belts. The company has made an early entry on the European medical cannabis market through a groundbreaking partnership with Love Hemp Ltd. The latter is the UK’s leading player in the CBD sector, with over 40 product categories, including CBD-infused beverages, sprays, and a variety of edibles and cosmetics. Love Hemp products are showcased in over 1,200 street stores in the UK and the company has distribution agreements with networks like Sainsburys, Tesco and Boots.
By acquiring Love Hemp Ltd, World High Life has secured a foothold in the European cannabis sector, with plans to enter the promising German market in 2020. The deal between the two companies will allow World High Life and Love Hemp to scale up operations and make steady steps towards becoming dominant medical cannabis and CBD players in the region. The European CBD and medical cannabis markets are set to boom in the next few years, and experienced companies like World High Life know that the key to success is to be a first mover.