While the German medicinal cannabis legislation is about to change, companies like World High Life Plc (NEX: LIFE) and Veritas Farms Inc. (OTC: VFRM) are carving out new niches in the European and North American cannabis industry
Since Daniela Ludwig of the CSU has taken over the post of Drug Commissioner of the federal government of Germany, the climate regarding the discussion about the release of cannabis for the enjoyment of adults has significantly defused. While her predecessor Marlene Mortler strictly refused scientific findings, factual reports and discussion, 44-year-old Ludwig, despite her origin from the Bavarian city of Munich – now working in Rosenheim – is open about the subject.
She also admits that she hadn’t been extensively involved in the field so far, so she needed some time to look at the circumstances and confront with different opinions. But it has already become clear that another wind from the south is blowing through the Federal Republic, which some people already regard as a hopeful new beginning of the conversation.
And indeed Daniela Ludwig expresses herself relatively frequently in the most diverse media and press organs, where she shows herself from an open-minded side. The Drug Commissioner wants to conduct a continuing debate on cannabis legalization and bring the controversial disputes into peaceful harmony.
The dialogue between the groups with different opinions had to take place in order to find a middle way for the future, since the current way of dealing with the issue was no longer up to date and a fair answer had to be found. One would have to face the fact that cannabis is the illegal drug number one and that access via the black market could lead to completely different substances.
Prevention is the first priority, she said, but the use of flyers is outdated, so you have to try to reach young people through Youtube or Instagram. Early and regular use of cannabis could eventually cause severe brain damage, which can of course be prevented. Many colleagues would be grateful if someone could finally address the entire spectrum openly, look at the changes in other countries and act in a more contemporary way. Nevertheless, there is still a group of people who demand a tougher approach. Daniela Ludwig wanted to familiarize herself with all opinions before she could make a final judgement.
World High Life is closely watching Germany’s path to cannabis legalization
As more and more European countries are relaxing their policy regarding cannabis, Germany will most probably be the next one to do so. Investors from different parts of the globe are eyeing the European cannabis market, which will become the most important in the European cannabis sector in just a few years.
World High Life PLC (NEX: LIFE) is an investment company founded by two highly experienced North Americans, the owners of the successful cannabis companies, Supreme Cannabis (TSX:FIRE) and 1933 Industries (CSE:TGIF). WHL’s main focus is to find new investment opportunities and acquiring the most promising cannabis companies in the UK and other European countries.
WHL brings the hard-won experience from the American cannabis market and transfers the know-how into the European one, so that the same mistakes won’t be repeated in the burgeoning European cannabis sector.
WHL’s first successful acquisition was UK’s leading CBD company Love Hemp Ltd. in a transaction valued at 9 million GBP. Love Hemp produces a variety of CBD products such as sprays, vapes, oils, edibles, CBD-infused beverages, and cosmetics. The company sells its products in 1,200 UK high street stores and has agreements with big networks such as Boots, Tesco, Superdrug and Sainsbury’s.
By acquiring Love Hemp, World High Life plans to expand into other European cannabis markets, starting with the German cannabis market in 2020.
CBD rush in the US
While medicinal cannabis and CBD businesses in Europe still face many bureaucratic challenges, CBD sector is the US is booming. Companies who have made investments in CBD a few years ago, are now experiencing enormous growth.
Such is the case with Veritas Farms Inc. (OTC: VFRM), founded in 2015, that has generated more than $2.9 million in total revenue by Q2 2019. This is a 500% increase since Q2 2018, with gross profits skyrocketing by almost 800% to $1,523,413. With their farm located in Pueblo, Colorado, the company controls the whole process of making and delivering full spectrum hemp products that are becoming more and more popular among customers.
Veritas Farms keeps growing. At the beginning of November, they secured an agreement with Winn Dixie and BI-Lo supermarkets to supply CBD products to 125 South Eastern stores. And just now, the company has a new exciting announcement – a partnership with FounderMade to produce Veritas Beauty, a full spectrum hemp beauty product line.
Looking at the pace with which companies like WHL and Veritas Farms expand, it is hard to deny that cannabis and CBD are the next most dynamically developing sectors.