Canopy’s European cannabis production center expects initially sales in September


Sales from Canopy Growth’s massive cannabis production center in Denmark are anticipated to get started in September, expanding the restricted health-related marijuana provide in the German industry and giving a increase to the Canadian company’s international income.

Canopy is amongst a quantity of main Canadian cannabis firms making use of Denmark as a springboard to meet soaring demand for health-related cannabis in the European Union.

Tapping that demand is portion of the core approach of numerous publicly traded Canadian cannabis firms, whose valuations have soared in current years primarily based largely on higher expectations for capitalizing on markets outdoors North America.

Rival producer Aurora Cannabis, for instance, lately disclosed the initially “saleable” harvest from its Denmark facility would take location in the coming months.

Aurora and Canopy each have massive facilities in Odense, about two hours west of Copenhagen.

“We count on to see Denmark commence to provide European markets this coming September and contribute to our margin,” outgoing Chief Monetary Officer Tim Saunders mentioned on a conference contact right after announcing the company’s quarterly earnings.

A regulatory filing final week identified Germany as the essential industry.

Germany has noticed higher interest in its domestic cultivation plan, with 79 applications for the 13 contracts to be granted. Nevertheless, the quantity it is calling for remains effectively brief of anticipated demand in the coming years.

Canopy’s international income surpassed eight million Canadian dollars ($six million) in the nine months ended Dec. 31, according to the company’s third-quarter fiscal 2019 outcomes, a almost sixfold enhance more than the very same period the prior year.

Canopy subsidiary Spectrum Cannabis Denmark’s 430,000-square-foot greenhouse in Odense currently possesses a cannabis production license from Denmark’s Medicines Agency, Laegemiddelstyrelsen.

The license was issued with no situations, which means Spectrum does not have a production cap or limits to the solution forms it can generate, the enterprise mentioned.

Canopy owns 82% of Spectrum Cannabis Denmark.

Spectrum Denmark has received clones for testing and as mother plants to populate the Odense facility.

Matt Lamers can be reached at [email protected]

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