How to Invest in Australia’s Medical Cannabis Market
June 28th, 2018
Canada and the United States may be the two most well-known cannabis markets, but Australia’s changing laws could pave the way toward becoming an industry leader. After legalizing the export of medical cannabis, the country could become one of just three countries that are exporting high-quality product en masse. The domestic market could also break the $1 billion mark by 2020, making it a significant opportunity in its own right.
Becoming a Cannabis Leader
Australia’s federal government legalized medical cannabis back in February 2016, making it one of the first developed countries to embrace the drug’s medicinal benefits — and some experts believe that the country’s domestic medical cannabis market could hit $1 billion by 2020. In January, the country further announced that it was legalizing the overseas export of medical cannabis in a bid to capitalize on a market projected to reach $55 billion by 2025.
Unfortunately, the country’s arduous licensing process and substantial finance requirements have slowed the rollout of domestic production and consumption. Many cultivators may still be at least a year away from a commercial crop and medical practitioners are still somewhat hesitant to prescribe medical cannabis, although the U.S. Food and Drug Administration’s approval of GW Pharmaceutical plc’s (GWPH) Epidiolex is certainly a positive development.
The largest producers of medical cannabis for export right now are Canada and the Netherlands. With federal level medical and adult-use legalization, Canada has become the leader in the space while the Netherlands has the best known cannabis brands and the longest track record in the space. The largest importers of medical cannabis are Germany and Croatia, but many European markets are entering into the fold as laws liberalize.
Where to Invest in the Country
Investors looking for exposure to Australia’s medical cannabis industry have many different options, but some companies are closer to commercialization than others.
The Hydroponics Company Ltd. (ASX: THC) recently announced the import of the first medicinal cannabis products from its European strategic partner — Endoca. After securing import permits, the company is ready to immediately distribute the products to Australian patients under the government’s Special Access Scheme or through an Approved Prescriber using the Medical Cannabis Medicines Portal (MCMP) that streamlines the process.
“THC’s program to bring Endoca products to Australia is the first step in providing Australia with high quality medicinal cannabis solutions, which will extend to local organic growing and pharmaceutical GMP manufacture as we roll out our partner and domestic production strategy,” said Hydroponics Co. Chairman Steven Xu.
These products will provide medical practitioners with non-psychoactive cannabis-based products, including its CBD+CBDa raw product that’s unique in Australia. In addition to the high-quality products, the company is positioning itself to generate near-term revenue before it can begin domestic cultivation.
Australia’s medical cannabis market is slowly maturing and the country has the potential to become a leading exporter over time. While the market is maturing, investors may want to consider companies with near-term commercialization potential, such as The Hydroponics Company Ltd. (ASX: THC), which recently imported the first batch of medical cannabis products into the country.
Follow Us on Social Media
About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: http://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.