As more and more cannabis producers in Canada seek opportunities in legislated emerging markets one of the top licensed producers (LPs) around announced a new market it plans to gain.
On Wednesday (October 25) Canopy Growth (TSX:WEED) announced it launched a strategic partnership with a company called Grow House JA Limited, which will be conducting businesses in the medical cannabis space as Tweed Limited JA.
Bruce Linton, chairman and chief executive officer of Canopy, said in the statement that Jamaica represents a “world-class” cannabis market. According to Linton, the team in Jamaica come with experience and knowledge of the market. As per the deal, Canopy will hold 49 percent of the share capital for Tweed JA.
“We look forward to contributing to a successful Jamaican cannabis market with the addition of Tweed JA,” Linton said.
On that note, the market reacted somewhat favorably to the announcement. Canopy saw a minor 0.77 percent increase to its stock by market closure on Wednesday to $13.03. On a year-to-date period, the company has seen a 42.56 percent increase.
Evaluation of international possibilities in the cannabis business
Russell Stanley, a special situations analyst with Echelon Wealth Partners focused on the Canadian cannabis market, told the Investing News Network (INN) investors should make sure if they are interested in international opportunities to look for companies already involved in this prospect.
“It’s a lot easier to increase your exports into a market where you’re already selling. If investors… really want that to be a part of their investment exposure, they should focus on companies that are already exploring the market rather than companies that are still talking about it as an objective, but haven’t actually broken through yet,” Stanley said when asked how investors should evaluate a company’s intentions on an international scale.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.