E Cannabis Central: These Companies Intend To Become Major Players In Europe

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It is predicted that over the next 5 years the CBD industry will grow more than 400% through 2023 in Europe (source) making it the largest legal cannabis market in the world. This is a great opportunity for companies to enter and/or expand through Europe with far less competition than we’re seeing in the U.S. and Canada.

Why the focus on Europe? Because there is a large and undeveloped emerging market there for CBD, estimated to be worth C$66.8 billion by 2020 and, because European governments were early adopters of CBD, the product is readily available as an over-the-counter product, stocked in local pharmacies and available online.

The companies highlighted below may well become major suppliers to this burgeoning market.

1. StillCanna Inc. (CSE:STIL, OTCPK:SCNNF), a Canadian early-stage life sciences company focused on large scale CBD extraction in Europe, has taken this opportunity to heart by combining its proprietary strengths in the extraction and distillation of pure CBD from hemp and/or cannabis oils with a number of key acquisitions and initiatives, as follows:

  • acquired Olimax, a vertically integrated licensed Polish cultivator, extractor, and formulator of hemp CBD, in March making StillCanna one of the largest hemp cultivators in all of Europe,
  • signed an exclusive extracting contract with U.K.-based supplier of CBD, Dragonfly BioSciences LLC, which is expected to generate $46 million in revenue for the company over the next three years.
  • developed its own proprietary and registered hemp seed that has a short gestation period allowing the company to plant two crops a year starting in 2020,
  • owns a number of agricultural-based patents that give the company a distinct advantage over new entrants into the market,
  • established a new extraction facility in Poland called Nexus that will be fully operational by Q4,
  • constructing another CBD extraction facility in Poland, named Horizon, which should be operational in 10 to 14 months which will be one of the most advanced, green, high-capacity facilities in the world,
  • has reached the final stages of the licensing process for its ORIGIN extraction facility in Romania, a Joint Venture with its U.K.-based partner Dragonfly Biosciences, and anticipates licensing completion and full production within the 4th quarter of 2019 and
  • expects to be cultivating 12,500 acres and producing up to 60 million grams by 2021 with lots of room to grow beyond that.
  • Founder Marc Crimeni relocated to Europe at the end of July to concentrate on bulk sales of CBD.
  • Individual insider management owns 3% of the stock.
  • The company changed its name to StillCanna Inc. from EVI Global Group Developments Corp. in March 2019.

For a detailed financial analysis please go here. You will not be disappointed.

In spite of StillCanna Inc.'sacquisitions and initiatives as stated above its share price is down 55% from its recent peak on April 18th.

2. ICC International Cannabis Corp. (WRLD.U, WLDCF), a Canadian company which specializes in the acquisition & operation of cannabis assets worldwide with an emphasis on Europe, is on a clear path to be the first publicly listed, globally focused, pure cannabis play. It also builds and operates high-quality, low-cost cannabis production, processing and distribution facilities worldwide.

The company:

  • has secured the exclusive European master license to the Affinity Alpha Unit whose extraction technology will allow the company to increase yield by a projected 40%-50% and limit cannabinoid losses associated with existing extraction process leading to cost savings that will help the company improve margins,
  • has completed a strategic investment in Biotii Technologies Corp., a privately-owned Boston company, that hopes to establish processes to mass produce genetically engineered micro-organisms that express CBD/THC profiles identical to those found in nature, at a fraction of the cost of current cannabis production methods and with more consistent production quality,
  • has signed a licensing agreement with Authentic Brands Group to market and distribute cannabidiol-derived health and wellness products throughout Europe under its brands which will compliment ICC's product strategy by delivering unique CBD-based solutions to diverse targeted audiences,
  • has received a $5 million strategic investment by way of a convertible debenture from Auxley Cannabis Group Inc. (TSXV:XLY) effectively expanding its international footprint to 22 countries across 5 continents,
  • intends to introduce VendaPharm, MarinaBox and Bamboo vending machines into high traffic retail end points and pharmacies across its European downstream network of 80,000 retail outlets, pharmacies and stores to provide access to its broad range of branded THC/CBD products,
  • acquired 49.9% of Wayland Group Corp. (WAYL, MRRCF ), a vertically integrated cultivator and processor of cannabis with production facilities in Canada, Germany, Switzerland and Italy, and assets in Colombia and Argentina and
  • ICC's 60,000 square foot Swiss cultivation facility has put the company at the epicenter, both economically and geographically, of the booming market to feed the continent’s growing demand for CBD.
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