Australian cannabis producer Little Green Pharma is mulling over a German listing as it plans to expand its footprint in the European medicinal marijuana market.
The privately owned Little Green Pharma claims to be a market leader in Australia after gaining a cultivation license in June 2017. It released the first Australian-produced medicinal cannabis in August 2018 and it recently completed its second harvest at its cultivation facility near Perth, Western Australia.
“Little Green Pharma is thrilled to be the market leader in Australia,” said managing director Fleta Solomon. “With the second crop now harvested, the company is looking forward to expanding production to both help increase access for Australia patients and export premium grade medicinal cannabis to jurisdictions where imports are allowed.”
One of the most attractive jurisdictions where imports are allowed is Germany, and Little Green Pharma is reportedly considering a listing on the Frankfurt stock market. Goldman Sachs and Deutsche Bank are said to be helping facilitate the IPO. Cannabis firms typically list in Sydney, Toronto or New York, so it would mark an interesting strategy for Little Green Pharma.
However, Europe is projected to be the fastest growing region in the global cannabis market over the next five years. Germany and Denmark are leading the way on the continent, but the UK has also relaxed its laws and patients are starting to receive medicinal marijuana.
Many countries across the continent permit medicinal cannabis use, so it is an important market and any producers planning to set themselves up as global powerhouses must make inroads in Europe. Canopy Growth, International Cannabis Corp and Columbia Care are among the big firms ramping up their operations on the continent.
Meanwhile, Luxembourg has confirmed that it will be the first nation in Europe to roll out a legal, regulated industry for recreational cannabis. Only Uruguay and Canada have thus far permitted recreational marijuana use, but Luxembourg is planning to join them soon.
At a press conference held by the coalition government – containing the Democratic Party, the Luxembourg Socialist Workers’ Party and The Greens – political leaders said cannabis will be legalized and commercially distributed. There are just 600,000 people in Luxembourg, but it has close ties with France, the Netherlands and Belgium, and it could be a significant move that encourages neighbouring countries to roll out a commercial industry rather than seeing their citizens head over the border to spend their money in Luxembourg.