A Canadian medical marijuana grower is launching a joint venture in Denmark with its eye on meeting MMJ demand throughout Europe, becoming the latest Canadian cultivator to establish a presence in the Scandinavian country.
Ontario-based CannTrust Holdings said it inked a joint venture agreement with the Danish company Stenocare, which already has received a medical cannabis cultivation license.
Under the terms of the joint venture, CannTrust will receive a 25% stake in Stenocare and the right to appoint half of its board.
Financial terms of the deal were not disclosed. Stenocare is a private company launched last October to capitalize on Denmark’s legalization of medical cannabis.
In recent months, Alberta-based Aurora Cannabis announced plans to create “Europe’s largest” medical cannabis facility, and Ontario’s Canopy Growth unveiled plans for 430,000-square-foot of cultivation space.
Eric Paul, CEO of CannTrust, told Marijuana Business Daily, “It’s a good start for us in Europe, and we’re active in a number of other countries,” he said. “We’ll be making more announcements shortly.”
Construction of the cultivation facility is expected to begin in the second quarter.
CannTrust also plans to ship cannabis products from Canada for sale in Denmark until the production facility is ready to meet local demand.
Denmark’s MMJ market at a glance:
- Medical cannabis became legal in Denmark on Jan. 1.
- MMJ is distributed there through pharmacies.
- Products available in Denmark include flower and ingestible cannabis oils.
CannTrust, Canopy and Aurora are traded on the Toronto Stock Exchange under the symbols TRST, WEED and ACB, respectively.
Matt Lamers can be reached at [email protected]
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