European Cannabis Weekly Round-Up

Luxembourg

Luxembourg, like the UK, has only recently legalised the use of cannabis product for medical purposes, with a view on legalising also its recreational use, as announced by the Government in November 2018.

In November 2017, the Minister of Health announced a two-year pilot program under which Luxembourgers would be able to obtain cannabis extracts and cannabinoids for medical purposes. This was the first step which led, in June 2018, lawmakers to unanimously approve a bill to legalise the medical use of cannabis.

Luxembourg is therefore officially among the other countries which are contributing to the fast-paced growth of the European cannabis market. As such, it is attracting the interest of Canadian and American companies seeking to expand their horizon to Europe.

Among these companies, we find Aurora, whose strategy is usually to immediately enter markets where medical cannabis has been recently legalised. On May 9th, Aurora announced that its German subsidiary, Aurora Deutschland, has reached an agreement with Luxembourg’s Division de la Pharmacie et des Medicaments, to supply small quantities of medical cannabis.

This is not the first time Aurora receives an order from the Luxembourg Government. With regards to this, Neil Belot, Chief Global Business Development Officer at Aurora Cannabis, said: “We are proud to continue serving as the exclusive supplier of medical cannabis to the Luxembourg Health Ministry.”

North Macedonia

On May 9th, Canadian company Cannabis Growth Opportunity announced a new investment in MKK Canada Corporation, also known as Balcanns, a cannabis supplier in North Macedonia.

Cannabis for medical purposes was legalised about three years ago, in February 2016 when the Macedonian Parliament Health Committee gave its approval for the legalisation of medical marijuana. Since then not many investments have been made in the region, which certainly could play an important role along with Greece, where the legal cannabis market is promisingly emerging.

In fact, North Macedonia would offer a number of advantages to companies seeking to invest in Europe. All the more, the Country is now in the process of entering EU and NATO, having solved issues with Greece after the referendum to change the official designation of the Country.

Among others, North Macedonia’s potential advantages are a low corporate tax rate; location at the crossroads of two main European transportation corridors (well positioned to supply key European cannabis markets); a qualified labour force at competitive costs; and an ideal climate for cannabis production.

Germany

On May 13th, HemPoland, a subsidiary of The Green Organic Dutchman Holdings, has reached an agreement with German-based Mediakos to be the sole distributor of Mediakos’ CannabiGold brand. The agreement is limited to Germany, where HemPoland will be the exclusive distributor of CannabiGold products, both in pharmacies and online.

“With a population of over 82 million, Germany plays a pivotal role in TGOD’s international expansion strategy,” commented Brian Athaide, CEO of TGOD. TGOD’s operations are based in Canada, whereas its subsidiary HemPoland represents its major link with Europe, through which the company exports hemp CBD oil.

Mediakos currently serves around 15,000 pharmacies which in turn serve around 10 million customers. These are important numbers which confirm Germany’s centrality as the largest and most important cannabis market in Europe.

Leave a Reply