Akanda pays $28 million for Portuguese cannabis farm

British company Akanda acquires Holigen, owner of a vast cannabis production site in Portugal. The purchase price was $28 million, paid to Flowr. The Canadian company is thus disposing of Holigen, one of its subsidiaries, less than three years after acquiring it. He made a handsome capital gain in the process, having paid no more than 10 million at the time.

The first coveted site is in Sintra, in the Lisbon region. Although small (2,000m², the size of a large garden), it has one major advantage. It is certified Good Manufacturing Practice (EU-GMP). Translation: these products can be sold as medicines in the European Union.

In a press release, Akanda plans to harvest two tons of cannabis from this plot. These varieties contain «with more than 25 % of THC».», the company is delighted to report. Such a high is rare, especially in temperate climates like Portugal.

The second site is outdoors. This means that these products won't be able to supply the medical cannabis market - as the plant has to grow in a sterile environment - but could be sold in adult-use stores. It also has the advantage of size: 65 hectares.

Opening up «recreational markets» in Europe

With this purchase, Akanda will be able to supply «The UK's burgeoning medical cannabis market» via its subsidiary Canmart. With EU-GMP certification, he is also able to sell his cannabis to 21 European Union member states which authorize the medical use of cannabis.

But the British company is also looking to the future. « Even if the business model d'Akanda focus on existing medical cannabis markets, more and more European companies are opening up to recreational markets. And our company intends to supply these markets as soon as they open», announced the press release.

CEO Tej Virk cites the example of Portugal, which could soon legalize cannabis. «The government is in active discussions to move forward on the legalization of cannabis for adult use, and Akanda will be there when the landscape evolves.».

For its part, the Canadian company Flowr, which sold the Portuguese site in Akanda, is in a new phase. According to Marijuana Business Daily, the company withdraws from all its markets «non-essential» and «expensive». This includes Australia, Uruguay and Spain.