EU Parliament and WHO Could Blow the Lid off The Cannabis Sector: Who’s Ready for the Next Phase?
POINT ROBERTS, Wash. and DELTA, British Columbia, Feb. 14, 2019 (GLOBE NEWSWIRE) -- Investorideas.com, a leading investor news resource covering hemp and cannabis stocks releases a snapshot looking at how recent developments in the EU Parliament as well as WHO (World Health Organization) could have massive impacts on the cannabis market and which companies are preparing for this next step in the radically expanding sector.
In breaking news yesterday, the European Parliament passed a resolution calling on the European Commission and EU countries to provide a legal definition and draw a clear distinction between cannabis-based medicines approved by regulatory bodies, MMJ not supported by clinical trials, and other applications of the plant.
The current patchwork of regulations in Europe has been seen as one of the main challenges for firms trying to expand into different markets and this resolution “emphasizes the need for the standardization and unification of products containing cannabis-based medicines.”
The resolution calls on the commission and national authorities “to address the regulatory, financial and cultural barriers” that have been hindering scientific research and “stresses the importance of close cooperation and coordination with the World Health Organization,” who recently recommended the United Nations Commission on Narcotic Drugs to reschedule cannabis.
This will come as good news to Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB.TO), who has already entered the European market having announced earlier this month its first commercial export of cannabis oil to the United Kingdom (UK), making it one of the first Canadian companies to commercially supply cannabis-based medicines into the UK under the new legal framework.
American Premium Water Corporation (OTC:HIPH) is also looking to the EU, having announced that it has established a business development team based in the UK and Spain to pursue distribution deals and strategic partnerships for the Company’s LALPINA brand across the Continent. The team will be led by Tanya Gullick, who will hold the title of Managing Director, Business Development, UK & Europe, with Paolo Toffolo as Director of Sales & Marketing for UK & Europe.
American Premium CEO, Ryan Fishoff, commented, “I am thrilled to announce the Company’s entry into the European continent. This market has been largely ignored by a lot of our counterparts but collectively is as large as the US and Canadian hemp markets. This will be a huge potential market for the Company once we export our THC infused beverage that complies with all federal and international laws. It’s an exciting time and I look forward to going there to meet the entire team and work on the strategy for the region.”
At the start of the month, Aphria Inc. (TSX: APHA.TO) (NYSE: APHA) completed its first transfer of plant cuttings from four of the Company's cannabis strains to Denmark-based Schroll Medical as part of the Company's previously announced Strategic Partnership with Schroll. The shipment was completed under permits issued by the relevant health authorities, including an export permit from Health Canada, an import permit from the Danish Medicines Agency and a phytosanitary certificate from the Canadian Food Inspection Agency.
"We are pleased to introduce the first four Aphria strains to be produced in Europe, through our strategic alliance with Schroll," said Hendrik Knopp, Managing Director of Aphria Germany, who is overseeing the Partnership on behalf of Aphria and Schroll. "This marks another important milestone for Aphria as we extend our leadership position in the European market, and it gives me joy to be able to say today that we literally have a good thing growing in Europe."
Canopy Rivers Inc. (TSXV:RIV) has also been investing in the EU, having announced a $9.4 million equity investment in its portfolio company Canapar Corp., the Canadian parent corporation of Canapar SrL, an Italy-based organic hemp production and processing platform. The investment aligned with the Company’s global-focused growth strategy and is expected to provide the Company with the opportunity to capitalize on the rapidly expanding European CBD market.
These recent recommendations from the EU and WHO could blow the lid off the cannabis sector and allow for much more freedom with regards to trade, transportation and research, but with expansion comes new challenges and companies like HIPH and Aurora, who have already begun investing in this area, are likely to have a major advantage moving forward.
For investors following cannabis stocks, Investor Ideas has created a stock directory of publicly traded CSE, TSX, TSXV, OTC, NASDAQ, NYSE, ASX Marijuana/Hemp Stocks
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