Canadian LPs buy European hemp companies

In Europe, medical cannabis is gaining ground, but local cannabis production remains limited. to exports by Canadian companies. Europe, on the other hand, has a long tradition of growing hemp, Cannabis low in THC and high in CBD, a molecule of growing interest for its medicinal virtues.

Speculation in the cannabis industry is now crystallizing around CBD, a market segment with strong growth potential. And this is obviously attracting Canadian producers and distributors.

Latest investments and acquisitions

As part of its global expansion strategy, Canopy Rivers, the investment arm of Canopy Growth has just invested in CanapaR Corp, the parent company of CanapaR SrL, a hemp production and processing platform in Italy. Canopy already owned a 35% stake in CanapaR Italy. By investing $17.4 million twice, the company is capitalizing on the estimated growth of the CBD-derived products market. Canopy now owns 49.9% of CanapaR SrL. CanapaR Italy already produces CBD-infused oils and products, and aims to develop a line of CBD cosmetics, skincare and beauty products «made in Italy». The Italian cosmetics market is Europe's fourth-largest and, on the global market, Italian brands are recognized and in demand.

Last October, The Green Organic Dutchman has completed its acquisition of HemPoland, one of the leaders in CBD oils on the European market - a market, incidentally, of 750 million potential consumers. TGOD therefore benefits from the profits generated by the company, as well as its distribution network (700 locations in 13 countries) and its high-tech facilities for extracting premium CBD. TGOD has disbursed $7.75 million in cash and intends to invest a further $10.3 million to develop the company and its European influence.

Organigram, a Canadian producer of medical cannabis has made an investment private placement of $10 million in the form of debentures in Eviana Health, another Canadian company licensed to produce hemp in Serbia. In addition to its extraction sites, the company has 60 tonnes of dried hemp ready for extraction and a 250-hectare harvest planned before the end of the year, corresponding to around 250m3 of dried hemp. The company produces organic hemp for use in cosmetics and nutritional supplements, using Vitalis Supercritical's CO2 extraction method.

In September, Aurora Cannabis Inc. announced the acquisition of Europe's largest producer of organic hemp and hemp-derived products: Agropro. At the same time, the company acquired the distributor Borela, Agropro's sister company, which sells organic hemp seeds, flour and oils. It currently owns 1,600 hectares with a production capacity of 1,000,000 kg, and has contracts underway to extend its production to over 3,000 hectares in Lithuania and Latvia, Estonia and Poland.

Agropro and Borela were mainly focused on producing products from seed, leaving a large mass of high-CBD organic hemp unused. Aurora intends to optimize this material by refining it and extracting the CBD to make wellness by-products and generate revenue in this growing market. It also intends to tackle the dietary supplements market, particularly for vegans and vegetarians, as the hemp seeds are rich in fiber and protein. Aurora is already present on the European market through Hempco Europe, a subsidiary of Hempco Canada Superfood, of which it has become the majority shareholder at 52.7%. by buying back the shares by Charles and Angela Holmes of Planet Hemp.

Last April, Canadian distributor and producer Maricann announced the acquisition of Haxxon as part of its European expansion strategy. Maricann is currently expanding its medical cannabis production facilities in Canada. The company is now diversifying into hemp cultivation in Europe. Haxxon has a 6,000 m² indoor cultivation facility in Switzerland. Its acquisition will enable Maricann to produce high CBD content plants for the Swiss market. Maricann also intends to expand these facilities by investing around 4.8 million Swiss Francs to increase yields and invest in equipment for the extraction and processing of CBD liquid.