Investment in the US cannabis sector continues to drive growth through companies like GreenStar Biosciences Corp. (CSE: GSTR) and Greece is fighting to attract international investors to their own market
The Greek government has granted a total of 26 cultivation licences for the cultivation and processing of cannabis for medicinal purposes. The measure is also expected to have a positive impact on the economy.
As a conversation between Prohibition Partners and a Greek government spokesman revealed, they are very enthusiastic about the possibilities of medical cannabis. In addition, they are actively looking for new international investment opportunities.
In the US both medicinal and recreational cannabis markets are already doing well thanks to recent legislations passed in particular states, making trade and cultivation legal. Investors in the sector can already see great results, such as GreenStar Biosciences Corp. (CSE: GSTR)whose tenant partner company Cowlitz regularly records $4 million in quarterly revenue. GreenStar specializes in identifying solid local cannabis competitors and providing them with their expertise on the path to success. Their strategy focuses on building a portfolio of companies working on every aspect of the product life cycle to ensure the top quality result and a strong brand on the market.
Europe still lags behind though individual countries like Greece slowly allow international cannabis companies into their markets, but not without difficulties.
Greece needs investment
Last month, the cabinet was sworn in with President Kyriakos Mitsotakis. Now the new Greek government is hoping to make investments of around 360 million through the production and processing of cannabis as a medicine. At the same time, up to 2,250 new jobs are to be created. Despite falling unemployment, unemployment is still high by European standards. According to Euronews, the unemployment rate in May this year was 17.2%.
After the change of government, the new government fully supports the medical cannabis initiative, said Costas Vamvakas, managing director of the VK PREMIUM advisory group. The country needs cash and the investments are foreign direct investment, Vamvakas said.
In addition, the company expects an increase in investment through partnerships between local companies and producers from Canada, Israel or the Netherlands.
Three licences required for cultivation
For a company in Greece to be allowed to grow cannabis for medicinal purposes, it must acquire three separate licences. Among other things, a Greek company must be set up to buy or lease the land. It also prepares the documentation for the installation licence. After a successful audit, companies can apply to the National Organisation for Medicinal Products for an operating and medical licence. To date, however, no company has received all three licenses required to start production.
The liberalisation of cannabis, which began under the former Syriza government, will continue under the new government. The steadily growing demand for medical cannabis in Europe could help Greece recover from the sovereign debt crisis.