Canopy Growth, Canada’s cannabis colossus, made a pair of major announcements Thursday. In a press release, Canopy Growth announced its plans to move into the Latin American cannabis market with a new subsidiary. Canopy has also acquired a leading medical cannabis firm in Colombia.
Canopy Growth Corp. Introduces Latin American Subsidiary
On July 5, Canopy Growth Crop. introduced its Latin American affiliate Canopy LATAM Corporation.
Canopy LATAM will be a wholly owned and controlled subsidiary of Canopy Growth.
Additionally, through the LATAM subsidiary, Canopy has acquired Spectrum Cannabis Colombia S.A.S., one of Colombia’s leading medical cannabis companies.
Before the acquisition, Spectrum Cannabis Colombia operated as Colombian Cannabis S.A.S.
Canopy Growth Gains Significant Foothold In Emerging Market
Canopy LATAM gives one of Canada’s largest cannabis firms a significant foothold in the emerging cannabis sector in Latin America.
Through its new subsidiary, Canopy Growth hopes to advance medical cannabis across the region, while also capturing market share.
And with the acquisition of Colombian Cannabis, Canopy is also ready to make inroads into the Latin American market immediately.
Colombian Cannabis already held all of the national licenses required to produce, manufacture and export cannabis. Now, as Spectrum Cannabis Colombia, the company will serve as the regional production and processing hub for Canopy LATAM.
All cannabis and cannabis derivates Spectrum produces are intended for the Latin American market. Construction on new production and cultivation facilities will begin later this summer. But Canopy expects to complete its construction stage twelve months after commencing.
Canopy’s Colombian Subsidiary Joins Operations Across the Continent
Canopy Growth’s recent expansion into Colombia builds on the company’s activity in other South American countries. It will also help Canopy advance operations in others.
Canopy is also engaging with regulators in Brazil, as that nation considers revised medical cannabis legislation.
Canopy Growth Plans To Build A Latin American Cannabis Market
Investors across the cannabis industry are keeping a close on emerging trends in Latin and South America.
In a recent report from Arcview Market Research and BDS Analytics, estimates place the legal cannabis market at $776 million by 2027. In 2018, sales reached $125 million.
That surge is driving heavy overseas investment from Canadian and American cannabis companies, including Canopy Growth.
Next to Uruguay, the first nation on earth to federally legalize adult-use cannabis, Colombia is one of the largest cannabis producers in the region.
Both countries are driving serious investor interest in South American cannabis markets.
Furthermore, Colombia’s cannabis laws are specifically geared toward building a new economic sector. The country hopes to become a worldwide leader in cannabis exports.
To do so, Colombia’s government is handing out licenses to multinational cannabis companies like Canopy Growth.