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

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

In spite of ICC's efforts to date and stated plans for the future ICC's share price is down 88% in the last 7 months.

3. Aleafia Health Inc.(TSX: ALEF, OTC: ALEAF, FRA: ARAH) is a vertically integrated cannabis health and wellness company with three cannabis cultivation facilities in Ontario, Canada where it produces a diverse portfolio of products including oils, capsules and sprays. The company also operates a national network of 22 medical cannabis clinics.

This past May it entered the German medical cannabis market with a 60/40 joint venture (JV), through its wholly-owned subsidiary Emblem Cannabis Corp., with German pharmaceutical wholesaler Acnos Pharma Gmbh. The JV entity will purchase Aleafia Health branded cannabis oils for distribution to German pharmacies and for clinical trial usage.

Why in Germany? Because:

  • according to a report by the Bank of Montreal, the German medical cannabis market is projected to produce revenues of $5 billion in 2025 for cannabis producers, and Aleafia wants to participate directly in that growth and
  • the German market:
    • has significantly higher margins compared to the Canadian market and
    • patient purchasing costs are reimbursed through private and public health insurance.

Why Acnos? Because it:

  • has access to 110 distribution centers and 20,000 pharmacies, along with extensive distribution channels across Europe and
  • is currently building a dedicated cannabis product storage and order fulfillment hub within its new headquarters.

For a detailed financial analysis please go here.

Aleafia's stock jumped by 24% with the announcement of the Acnos J/V in May but has continued its decline and is now down 63% from its recent peak on February 5th, 2019.

4. Elixxer Ltd. (TSXV:ELXR, ELIXF), a Canada-based investment holdings company that focuses on acquiring production, brands and distribution in established and developing cannabis markets, focuses on international markets, which will help them provide profit from the growing international demand for cannabis.

The Company:

  • changed its name from LGC Capital Ltd. to Elixxer Ltd. on August 6th, 2019,
  • entered into a letter of intent in March 2018 with Italian-based company Evolution BNK, a legal cannabis producer with a 70,000 sq. ft greenhouse in Sanremo, Italy, to acquire a 49% equity interest at a future date under certain circumstances and offers an option to purchase a 5% royalty on net sales,
  • entered into an investment agreement in May, 2019 to acquire a 35% equity interest in Freia Farmaceutici Srl, the only company in Italy - and one of the few in Europe - to have developed and marketed hemp-based pharmaceutical products authorized by the European Food Safety Authority and
  • currently sells its cannabis products in over 1,000 points of sale acrossSwitzerland and Italy.

For a detailed financial analysis please go here.

ELXR expects the Freia acquisition to provide significant synergies for the company within Europe but, to date, that benefit has not translated into a higher stock price. It remains very much a penny stock in the true meaning of the word trading at $0.08 and is down 38% from its recent April 4th high.

In addition to the above mentioned companies that have a very small capitalization the following companies are much larger and much more established.

5. The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) (OTCQX:TGODF) is focused on medical cannabis markets in Canada, Europe, the Caribbeanand Latin America, as well as the Canadian adult-use market. It also has organic hemp CBD oil operations in Canada, and in the EU through its wholly owned subsidiary, HemPoland.

The company:

  • announced its expansion into the hemp CBD market in June with the launch of its Global Strategic Hemp Division which will offer support to the Company's international partners by:
    • providing genetics,
    • training on organic methods and standard operating procedures and
    • offering regulatory insights and other advisory support,
  • signed a letter of intent for a 50/50 joint venture with Queen Genetics/Knud Jepsen A/S based in Hinnerup, Denmark which will:
    • provide a consistent supply of high-quality organic European-grown cannabis,
    • give TGOD exclusive rights to all cannabis-related production at the JV and
    • increase TGOD’s funded capacity to 195,000 kgs,
  • acquired HemPoland in 2018 which is facilitating its entrance into the German CBD market and, to that end,
    • has signed a distribution agreement with Mediakos, a leading German pharmaceutical distributor and
  • has had in-depth discussions with co-packers and additional distributors to continue expanding its footprint across Europe.

For a detailed financial analysis please go here.

Like most other pot stocks TGOD's stock price continues to be quite weak as it is down 42% from its March high.

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