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Canadian Billions Gives Them the Edge in International Cannabis Business

Canadian Cultivators and Dispensaries are Flush with Money and are Using it for Leverage in the International Market

Canadian billions of Loonies are sitting in the accounts of legal marijuana producers up in the northern country. Canada is close to legalizing marijuana for recreational use throughout the country and they are ready to spread the love everywhere.

The United States is struggling to keep up with our neighbor because of the very strict federal laws against cannabis and it seems there is a big opportunity slipping away. Could you see Canada as an economic powerhouse?

Canadian medical cannabis companies are primed to tap what one industry executive calls “insane” growth overseas.

Flush with capital and largely free from American competition, Canadian licensed producers (LPs) are spreading their wings to gain a first-mover advantage in new markets as more countries legalize marijuana for medical use.

Fueling the overseas push is the vast amount of funding the companies have accumulated: During the first half of 2017, Canadian cannabis companies raised more than 1 billion Canadian dollars ($790 million), up more than 1,700% from the same period last year.

“One of the big advantages that Canadian companies have internationally right now is that we have access to capital that companies in no other country can match,” said Cam Battley, a member of the board of Cannabis Canada, the industry association for licensed cannabis producers.

“In addition to our expertise and the credibility of having operated successfully under rigorous government regulation in Canada, we have access to the level of capital required to make significant investments in equity and also in capital projects.”

The potential is significant. A recent analysis by Toronto-based Eight Capital, a full-service investment dealer, pegs the potential international medical cannabis market at CA$180 billion ($142 billion) over the next 15 years.

“We believe the path to global expansion for the LPs starts by partnering through medical-focused opportunities, and that in the longer term, international medical markets could be major upside opportunities,” the report states.

Germany and Australia have been the early focus for nearly a dozen Canadian MMJ companies tapping international markets through exports of flower and oils, licensing arrangements, distribution deals and acquisitions. Others have accumulated interests in South America.

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Brian Wroblewski

Brian Wroblewski has a passion for writing, travel, food and family. Since working in and around the cannabis industry since 2008, Brian brings a unique perspective to the cannabis journalism space. With a focus on emerging brands, moving the cannabis industry forward and an undeniable passion for truth in business and journalism, find some of Brian's posts across the web on digital marketing, cannabis and a variety of different topics.

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