Analysis: Aussie cannabis firms go capital light as they roll into Europe

by Newsfeed


(Reuters) – A handful of small, young Australian firms are taking a chance on Europe in spite of the region’s diverse markets, hopeful that a capital-light investment strategy will diminish their risks.

FILE PHOTO: Cannabidiol (CBD) oil bottles of Swedish DeHolk AB company are pictured during the Cannabis Business Europe 2018 congress in Frankfurt, Germany, August 28, 2018. REUTERS/Ralph Orlowski

Europe could be a hard market to crack as regulations vary by country, but favourable rulings for medical marijuana and potential demand are promising factors. The companies reckon that establishing an early base there and working with European partners will help them better negotiate different markets and steal a march on larger North American rivals.

Cann Group and MGC Pharmaceuticals are among many firms that have pushed…



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