European Cannabis Weekly Round-Up

Tilray Reports 2018 Financial Results

On 18 March 2019, Tilray published its Full Year 2018 Financial Report. The company’s revenue rose by 110% to $43.1 million (C$56.4m) in the 12 months of last year. This identifies Tilray’s strength in the strategic partnerships and acquisitions that position the company to accelerate global sales growth and drive long-term shareholder value.

Brendan Kennedy, President and Chief Executive Officer of Tilray, said, “2018 was a very successful year for Tilray with many corporate milestones. Looking ahead, we remain committed to pursuing global growth opportunities and will be disciplined in deploying capital, particularly in the United States and Europe, where we believe we have multiple paths for value creation.”

Full Report here.

Canopy Growth and DNA Genetics

On 19 March 2019, Canopy Growth and DNA Genetics announced the extension and expansion of their partnership, from Canada and Jamaica to Europe. The two companies have committed to bringing DNA’s genetics to the European market. The first-landing country will be disclosed soon.

Mark Zekulin, President and co-CEO of Canopy Growth, commented: “Teaming up with DNA has proven to be a very strong and mutually beneficial partnership. Renewing our partnership for the next five years was a no-brainer for us and we look forward to introducing their high-quality DNA products to consumers around the world.”

DNA Genetics has been operating in the genetic breeding industry for over 15 years. Founded in Amsterdam, DNA is now head-quartered in Los Angeles and aims to become a geographically-diversified company by striking multiple partnerships with top-licensed producers and brands.

Zenabis Enters European Pharmaceutical Cannabis Market

Zenabis Global Inc. has published a Letter of Intent towards a definitive supply arrangement with Farmako GmbH, a research-based pharmaceutical company headquartered in Frankfurt, Germany.

The 21 March 2019 announcement was welcomed by Andrew Grieve, the Chief Executive Officer of Zenabis, who said: “We are thrilled to enter the European market alongside such an innovative and ambitious industry leader as Farmako.”

Farmako founder and Chief Executive Officer, Niklas Kouparanis, declared: “We are pursuing operations in every market that provides the necessary legal basis, and we believe that Zenabis, with its expanding high-capacity growing facilities, will be of significant benefit to the pursuit of our objectives.”

With over 660,000 square feet of indoor cultivation space in development across New Brunswick, British Columbia and Nova Scotia, Zenabis cultivation processes are carried out through automated procedures and precisely-controlled environmental factors.

Farmako Secures Import from Poland

Also on 21 March 2019, Farmako has also secured 50 tons of flower and oils from Polish company Pharmacann Polska. The contract between the two companies will provide a reliable supply of pharmaceutical cannabis for millions of patients in the European healthcare system in Germany and beyond.

Niklas Kouparanis, founder and CEO of Farmako, added: “This first step enables us to build a reliable distribution network in all European jurisdictions with a legal basis for pharmaceutical cannabis. The German is twice as big as the Canadian market, and additional European markets like the United Kingdom markets are opening up.”

Yuval Soiref, the co-founder, CEO and international business development of Pharmacann Polska, said: “Together with Farmako, we enter into an exclusive and promising partnership to move cannabinoid-based healthcare forward.”

EMMAC to Expand into EU Single Market

Along with many other companies looking with interest at the nascent European cannabis market, the London-based EMMAC Life Sciences Ltd is hoping to find some room for their investments and products. Their inspiration comes from the other side of the Atlantic, where the explosion of marijuana companies in Canada and the US has resulted from the trend toward legalisation there.

“Governments are opening up at a speed that it is hard to keep up with,” Antonio Costanzo, the chief executive officer of EMMAC, said in an interview.

This is a completely different experience for Costanzo, who previously strived as head of public policy and government relations at Uber Technologies Inc., where he urged governmental bodies to explore new markets. “Getting governments to open up a previously closed market was a fight”, he said.

By investing in businesses across the largest national markets in the EU, EMMAC is trying to secure its share within the European single market. It intends to build a business for cultivation, manufacturing, research and development, imports, distribution and branding of its cannabis products.