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Regulators across countries are making progress with the cannabis legalisation. Bermuda is on track to legalise recreational cannabis. The Netherlands opened the application for the cannabis grow experiment which will mandate coffee shops to be supplied exclusively with legally grown cannabis. On market developments, the product range of Germany’s medical cannabis extracts continues to expand as the market further develops. Investors are also now provided with an opportunity to get exposure to cannabis by accessing Switzerland’s first medical cannabis ETF which has been launched.
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The Latest News
Regulatory updates
Bermuda has officially proposed a framework to legalize adult-use cannabis. Following in the footsteps of several other Caribbean nations, the government of Bermuda is working to create a legal, regulated adult-use cannabis market. Last week, Bermuda's Honourable Attorney-General and Minister for Legal Affairs, Senator Kathy Lynn Simmons, released an official video detailing the country's plan to legalize adult-use sales. The draft bill, which has been posted online for public feedback, would make it legal for adults 21 and over to purchase and possess up to seven grams of weed. The bill would create a Cannabis Advisory Authority, which would be tasked with licensing and regulating legal weed businesses. To read more
Medicines authority reviewing five applications for the cultivation of medical cannabis in Malta. The Medicines Authority is currently reviewing documentation submitted and carrying out inspections related to the submission of five applications. In April 2018, Malta Enterprise awarded an Australian medical cannabis corporation 4,000 square metres of land to construct a state-of-the-art, fully licensed medical cannabis production and cultivation facility. MXC (MGC Pharma) announced that it had been given approval by Maltese government for full medical cannabis production and cultivation facility in Malta. No company producing medical cannabis has so far started operations in Malta. To read more
The Netherlands to open applications for the cannabis grow experiment next month. The Dutch government will start accepting applications in July from potential cultivators for its adult-use cannabis experiment. From July 1 until July 28, companies will be able to apply to grow adult-use marijuana for supply to coffee shops in 10 municipalities around the country. July marks the official start to the preparatory phase of the limited-scope experiment that will mandate all coffee shops in the 10 participating municipalities to be supplied exclusively with legally grown cannabis. Until now, all coffee shops have carried cannabis only from the illicit market. The selection process of up to 10 growers is expected to take six months. To read more
The deadline to apply for the German cannabis distribution contract extended yet again. The deadline to apply to be the distribution service provider for Germany’s domestically produced medical cannabis has been extended again. Now companies are able to submit applications until June 23. The original deadline was April 28. That was first extended to May 26 and then to June 9. Applicants’ offers must now be binding until Sept. 15. In a more recent reply to parliament, the government said that, for the BfArM, “the contractually agreed start of the first deliveries still is mid-October for the lots that were first granted and mid-November for the lots that were issued second.” After the cultivation contracts were awarded in the first half of last year, the BfArM said it has been monitoring the progress of the construction by visiting the facilities at least once every two months.
Market updates
Competition grows in Germany’s medical cannabis extracts market. Canadian cannabis producer Tilray announced the availability of a new full-spectrum extract for Germany’s medical market, the company’s first product in that market offering a larger CBD concentration than THC. The product has 5 milligrams of THC per milliliter and 20 milligrams of CBD per milliliter. Tilray’s announcement didn’t disclose the size of the bottle. A pharmacist told Marijuana Business Daily the new extract is being sold to pharmacies for 276 euros ($311). To read more
Germany faces a potential temporary supply shortage of cannabis flower. The Dutch government agency responsible for exporting medical cannabis sent an email Thursday to its German customers informing of a delay of up to six weeks in the next shipment of medical cannabis. MJBizDaily‘s European medical cannabis report estimated that in 2019 the OMC was responsible for the supply of almost 40% of Germany’s total flower imports for pharmacy dispensing. About half of the flower sold in Germany in 2019 was grown in Canada. The Dutch government agency has an agreement with the German government to ship 2,500 kilograms in 2020. Normally ships about 200 kilograms every month. The OMC has at least 40 German clients, the vast majority of which depend exclusively on the supply they get from the Netherlands. To read more
Investment updates
HANetf launches Switzerland’s first medical cannabis ETF. London-based investment platform HANetf has launched Switzerland’s first medical cannabis ETF as one of five new products on the Swiss Stock Exchange. According to Swiss stock exchange operator SIX, the ETFs enable investors to diversify their portfolios by incorporating “promising” megatrends. The investment focus of the ETFs range from e-commerce, cloud technologies, medical cannabis, and wellness. The underlying indices reflect stocks that target long-term, social and technological megatrends. To read more