Two Canadian cannabis investors – SOL Global Investments and LGC Capital – have made investments in separate European cannabis companies.
As European nations witness the benefits of marijuana legalization occurring in North America, momentum for legalization is building across the continent. Over the course of the next decade, the European cannabis market is expected to reach a value of €115.7 billion (US$132.7 billion) with medical cannabis accounting for nearly half of the market at €55.2 billion (US$63.3 billion), according to Prohibition Partners. And given these expectations, struggling European economies are turning to marijuana to create new industries, boost GDP, and to alleviate unemployment.
Toronto-based SOL Global Investments announced that it has invested €1.8 million (US$2 million) in Irish medical cannabis company Green Light Pharmaceuticals in exchange for a 25 percent stake in the business.
TSX-listed LGC Capital has closed on a US$4 million investment in Swiss cannabis producer Viridi Unit SA (Viridi). In exchange, LGC has acquired a 30 percent equity stake in the company plus a 5 percent royalty on Viridi’s net sales over the next 10 years.