Europe: The Cannabis Industry’s Next Emerging Market
September 19th, 2019
App, Exclusive, News, Top News
The global cannabis industry is projected to reach $66.3 billion by 2025, according to Grand View Research, representing a 23.9 percent compound annual growth rate. While North America has become a market leader, European markets are quickly catching up with their own liberalized laws. The market for health and wellness products, such as cannabidiol (CBD) and medical cannabis, is already established with public healthcare coverage in many countries.
Let’s take a closer look at Europe’s massive growth potential and companies that are operating in the region, including XPhyto Therapeutics Corp. (CSE: XPHY) (FSE: 4XT), which is focused on medical cannabis in emerging European markets.
Europe’s Massive Potential
Europe could become the world’s largest legal cannabis market over the next five years with double the population of North America. Six countries have already introduced cannabis legislation covering the growth, sale or consumption of cannabis. Germany, Italy, France, Spain, the UK and the Netherlands are all focused on introducing or expanding medical cannabis programs, which could open the door to a €2.3 trillion healthcare market.
More than €500 million has been invested into Europe’s cannabis industry through February 2019 and Prohibition Partners estimates that the market could be worth €123 billion by 2028. Insurance companies in Israel, Germany, Denmark and Italy are already covering medical cannabis prescriptions and these coverages could become a basic requirement for any public healthcare policy in the future, especially as the number of supported conditions grows.
Europe could also become a leader in the research and development of cannabinoid medications. With supportive laws at a federal and regional level, Europe is better equipped to study cannabis than the United States, where the DEA and FDA have hampered research efforts. Public healthcare coverage could also lead to a much larger medical cannabis market than North America where prescriptions must be paid out-of-pocket.
Investing in Europe’s Industry
Investors interested in capitalizing on Europe’s nascent cannabis industry should look to medical cannabis companies since most legislation is focused on medical cannabis and CBD products. Luxembourg is the only country that has promised to introduce an adult-use market before 2023. While Germany, Denmark, Malta, Greece and Italy have all discussed the possibility of doing so, these prospects are distant at the moment.
XPhyto Therapeutics Corp. (CSE: XPHY) is a science-based company focused on formulation, clinical validation and emerging European markets. The company’s 100% owned German subsidiary, Pflanzenextrakte GmbH, has already received a unique German cannabis cultivation and extraction license for scientific purposes, while management is pursuing other opportunities for cultivation, processing, manufacturing, import and distribution.
In mid-August, the company announced an exclusive cannabis research and development agreement with the department of biochemistry at the Technical University of Munich. Under the agreement, researchers will identify and assess novel R&D approaches to utilize cannabinoids, terpenes, terpenoids, polyphenols and flavonoids. Promising targets will advance through clinical studies and pursue joint research and commercialization.
Shortly after, the company entered into a definitive share purchase agreement with Vektor Pharma TF GmbH, a German narcotics manufacturer, along with an equipment purchase agreement with an affiliated company to purchase thin film drug delivery manufacturing equipment. The move provides the company with everything from clinical trial expertise to drug manufacturing capabilities, along with German cannabis and narcotics import licenses. The Vektor transaction was successfully closed in mid-September.
The company’s Canadian business consists of certified cannabis analytical testing and extraction/formulation services. These businesses enable it to act as a third-party analytical testing for licensed producers, wholesalers, distributors and law enforcement, while the in-house production of pharma-grade cannabis could power modern clinical research and the development of proprietary medical cannabis formulas.
XPhyto Therapeutics Corp. (CSE: XPHY) (FSE: 4XT) represents a unique opportunity to capitalize on Europe’s burgeoning cannabis industry. With a German cultivation license in hand, the company is uniquely positioned to become a market leader in the research and development of cannabinoid-based medications across Europe. Investors may want to keep an eye on the stock as it positions itself to capitalize on these opportunities.
For more information, visit www.xphyto.com or download their investor presentation.
CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on https://www.cannabisfn.com(the ‘Site’) is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies. We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.
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. CFN Media Group, 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. CFN Media Group, 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. CFN Media Group, 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: https://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. CFN Media Group, 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. CFN Media Group, 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. CFN Media Group, 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: https://www.cannabisfn.com/legal-disclaimer/.