Marijuana is becoming a global superstar in terms of medical and recreational legalization, and marijuana company’s stocks are following suit. Long gone are the days where a marijuana stock is a small company with only ties to one country.
Canopy Growth Corporation (TWMJF) is in the limelight of the market these days for many reasons, but the focus of this article will remain on its international ventures. The list of countries where Canopy Growth has marked its presence or is in the process of establishing business is noteworthy.
Number one on their list is Germany, as the country recently legalized the use of medical marijuana but must import it while regulations are being drawn for domestic production. Canopy Growth’s Tweed division was the first Northern American company that gained approval to export medical marijuana to Germany last year. Later, the company acquired MedCann GmbH Pharma and Nutraceuticals, a German distributor of medical marijuana.
In 2016, Canopy launched a joint venture with Entourage Phytolab S.A. to market medical marijuana in Brazil and earlier this year established Spectrum Chile SpA to expand their business into Chile.. In September, Canopy announced a supply license agreement with Alcaliber, S.A, who is licensed to grow and market marijuana for medical and scientific purposes in Spain.
Shortly after, the company announced another deal entering the Denmark market with Danish Cannabis ApS, where medical marijuana will be legalized in January 2018. Another deal was made with AusCann Group Holdings Ltd. to supply medical marijuana to the Australian market and they also purchased a minority stake in AusCann. Lastly, there is Jamacia. Canopy is collaborating with Jamaican partners to form Tweed Limited JA to supply medical marijuana to the island.
You are probably wondering if Canopy will venture into the U.S.? That’s a negative for now, as the company only conducts business “in jurisdictions where it is federally legal to do so.” In the U.S. on the federal level marijuana remains illegal so until that changes, the U.S. is not in their business pipeline.
Although Canopy continues to expand internationally, its most important opportunity is at home. Canada’s medical marijuana market continues to expand rapidly, and the country is on track for recreational legalization in less than a year. Forecasts for the recreational marijuana annual sales are between $4.2 billion and $6.2 billion by Canada’s Parliamentary Budget Officer, which doubles Canada’s marijuana market.