Canopy's European cannabis production center plans first sales in September

Sales at Canopy Growth's large cannabis production center in Denmark are expected to begin in September, expanding the limited supply of medical marijuana in the German market and boosting international revenues for Canadian society.

Canopy is one of the major Canadian cannabis companies using Denmark as a springboard to meet the growing demand for medical cannabis in the European Union.

Capitalizing on this demand is part of the core strategy of many Canadian publicly traded companies, whose valuations have soared in recent years and are based primarily on high capitalization expectations in markets outside the US. North America.

The rival producer, Aurora Cannabis, for example, recently revealed that the first "salable" harvest from its Danish plant would take place in the coming months.

Aurora and Canopy both have large facilities in Odense, about two hours west of Copenhagen.

"We hope to see Denmark supply the European markets next September and contribute to our margin," said Tim Saunders, outgoing finance director, during a conference call after the company's quarterly earnings announcement.

A regulatory filing last week identified Germany as a key market.

Germany has shown a keen interest in its homegrowing program, with 79 applications for the 13 contracts to be awarded. However, the amount it is asking for is well below expected demand in the coming years.

Canopy's international revenues exceeded Can $ 8 million ($ 6 million) in the nine months ended December 31, based on the third quarter of fiscal 2019, almost six times the last year.

The 430,000 square foot greenhouse in Canopy's Odense subsidiary Odense already has a cannabis production license issued by the Danish drug agency Laegemiddelstyrelsen.

The license was issued unconditionally, which means that Spectrum has no production limit or types of products it can produce, the company said.

Canopy holds 82% of Spectrum Cannabis Denmark.

Spectrum Denmark has received test clones and as parent plants to populate the Odense facility.

Matt Lamers can be reached at [email protected]

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