3 International Cannabis Markets We Are Bearish On

Canada has played a major role in the cannabis legalization trend and is a market that we will remain highly focused on in 2021 and beyond.

During the last year, we have seen a significant rise in the amount of cannabis revenue that is being generated in countries like the European Union (EU), South America, the Middle East, and Africa. Although this is a trend that we expect to become more significant in 2021, we continue to prefer some international markets to others for the following reasons:

  1. The legalization trend: will the country remain a medical cannabis market or will it one day transition to being a recreational market
  2. Population: we prefer countries that have a large population and prefer markets that have a large total addressable market (TAM)
  3. The economic and political climate is a country’s regulatory body favorable on the amount of tax revenue that can be generated from cannabis and how does the country look after the COVID crisis

Today, we want to provide more insight on the international cannabis industry and highlight the 3 markets that we are most excited about in 2021 as well as the 3 markets that we are not as excited about.

3 International Markets that we are Bearish on in 2021

Although Uruguay the first country in the world to legalize recreational cannabis, the market has not developed like we have hoped. After Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) (Frankfurt: 21P; WKN: A1C4WM) acquired ICC Labs Inc. for approx. $290 million in late 2018, we expected Uruguay’s market to record impressive growth, but this is a trend that did not play out like expected.

When the acquisition was announced, many analysts referred to ICC as the jewel of the Latin American cannabis market. The market got this one wrong and ICC is not the diamond in the rough that many people had hoped it would be.

The acquisition was expected to establish Aurora as an industry leader in the Latin American cannabis market. Although ICC has developed a portfolio of high-quality, low-cost production cannabis assets, we believe it will take time for the market to mature and are not sure if Aurora Cannabis will be around once it does

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Weed Investor 2 weeks ago Member's comment

😂😂. Good luck with that.