While recreational and medicinal cannabis is booming in Canada, companies like GreenStar Biosciences Corp. (CSE: GSTR) and World High Life (NEX: LIFE) show the rest of the world is catching up
Trading cannabis is still not legal in the United States on a federal level, but 13 US states have introduced their own legislation allowing both medicinal and recreational marijuana. New regulations helped them in reducing the problematic black market issue and generated a new source of revenue for states in the form of taxes, fees and licenses.
It is not unreasonable to expect that eventually cannabis will become legal in the whole country, which would make the market even more profitable. Some investment companies are looking ahead and are already investing the local US markets.
GreenStar Biosciences Corp. (CSE: GSTR) is a Canadian player looking to capitalize on the U.S. market. The company leverages expertise gained in the Canadian market and uses it to identify and guide high-potential cannabis companies. One of their tenant partners, Cowlitz, is a producer, processor and distributor of high quality cannabis products in Washington state and is already a leader there. Last year (2018) Cowlitz reported an impressive revenue of $14.6 million achieved in just 5 years of operations and is still growing.
GreenStar aims at building a diverse portfolio of top cannabis companies like Cowlitz. Investing in the local US markets is a step to becoming one of the key players in the North American marijuana industry. Other companies are looking even further – to Europe, where legislation regarding cannabis trade still remains tricky.
The investment company World High Life (NEX: LIFE) announced its attention to buy the British producer of cannabis oil, Love Hemp for 11.23 million dollars, as part of its strategy of entering the European market. WHL also announced that it will place shares worth 6.25 million dollars in the stock exchange of the United Kingdom.
After quickly capitalizing on the legalization of marijuana in Canada, both for medicinal and recreational purposes, several companies such as WHL have been listed or expected to be listed in London. However, in the United Kingdom, specialists warn that regulation is still uncertain. Companies on the other hand, say there is enormous unprecedented potential to attract investment. World High Life plans to help Love Hemp expand into the lucrative German market over the next 12 months.
The U.S., UK, and European markets offer a huge amount of potential to the right companies and we could be looking at a second chance for investors who missed out on the Canadian boom.