Connect with us

Markets and industry

Flora investment in Hoshi paves way for European cannabis distribution

The move will see Flora’s finished cannabis products reach patients in Europe. 



Flora investment in Hoshi paves way for European cannabis product distribution 

Flora Growth has closed its €2m investment in European cannabis cultivator, manufacturer, and distributor, Hoshi, that will see its products reach the European market.

Toronto-based cannabis cultivator and product producer, Flora Growth, has announced it has closed its investment in Hoshi International, and has increased its fully-diluted ownership in Hoshi through a securities swap. The move will see Flora’s finished cannabis products reach patients in Europe. 

Reaching European patients

Under the agreement, Hoshi will use efforts to grant Flora access to its EU-GMP auditors to assist Flora in obtaining EU-GMP certification at its Cosechemos cultivation and extraction facility in Colombia.

President and CEO of Flora, Luis Merchan, commented: “The Hoshi team has developed a strong presence in Europe, and our high-quality, low-cost, medical-grade cannabis products and well-known global brands give both our companies a competitive advantage in one of the fastest-growing cannabis markets in the world. 

“We are excited to increase our alignment with the Hoshi management team and believe the partnership will be much greater in scope than only using their Portugal and Malta facilities as a European importation gateway for our Colombian cannabis flower and derivatives.

“Regulatory barriers and the technical requirements necessary to successfully navigate the European cannabis market should not be underestimated. We feel extremely pleased with the experience and expertise that the Hoshi team brings in order for us to quickly get our products to market. With the recent rule changes in Colombia allowing the export of THC and CBD flower, we are looking forward to bringing our premium Colombian flower and derivative products to established markets where there is already significant demand, growth, and the opportunity to generate recurring high-margin sales.”

Flora is set to receive 2,000,000 warrants from Hoshi management to acquire 2,000,000 common shares of Hoshi in exchange for 225,000 Flora common shares in order to strengthen the pair’s long-term strategic alignment and increasing Flora’s stake in Hoshi.

“We are excited to begin working alongside the Flora team and sharing our understanding of the European market while working together to bring to market finished product formats from Flora’s brand portfolio that are suitable for European medical consumers,” added John Aird, CEO of Hoshi. 

“Not only has Flora made an investment into Hoshi, but through our securities swap, the Hoshi management team also has a vested interest in the success of Flora Growth and our long-term working relationship.”

Markets and industry

Cannabis beverage market to reach £6.43bn by 2027

Fortune Business Insights says the market will grow at a CAGR of 50.9 per cent from 2020 to 2027.



Cannabis beverage market to reach £6.43bn by 2027

A new report has projected the cannabis beverage market to reach £6.43bn (USD$8521.6m) by 2027.

The report from Fortune Business Insights, which offers expert corporate analysis and data, has said the market is set to see increasing growth due to the surging popularity of the products. 

It noted that the online retail segment is set to dominate and that specialty stores would see greater sales if they display novel products online.

With consumer demand increasingly shifting toward chemical-free and natural trends and moving away from unhealthy consumption habits such as smoking, the report suggests consumers will increasingly move toward novel cannabis products like beverages. 

In particular, consumers in Europe and North America are rapidly inclining towards these trends, such as recognisable and herbal formulations, chemical-free, and all-natural cannabis beverages.

However, it highlights that governments of various countries are implementing stringent regulations on the distribution and manufacturing of such THC products – a factor that is likely to hamper the market’s growth in the near future.

Regionally, the sector is set to favour growth in North America, as, since the passing of the 2018 US Farm Bill, the demand for hemp-CBD has surged rapidly, according to the report. It also highlights that Latin America, Oceania, and Asia will exhibit slow growth because of the ban of cannabis beverages in these regions.

Recent developments have seen leading lifestyle brand, Tonino Lamborghini, move into the market through a licensing agreement with The Flora Growth Corp which will see the distribution of CBD beverages in North America and Columbia. Additionally, Canopy Growth Corp is planning to introduce a new range of cannabis beverages into the US to strengthen its position in the sector.

To read the report in full, please visit:

Continue Reading

Markets and industry

Synbiotic acquires 50.1% of cannabis group in significant merger for Europe

Synbiotic SE has acquired 50.1 per cent of Daniel Kruse’s cannabis group in what it has described as the most significant merger for the European cannabis sector. 



Synbiotic acquires 50.1% of cannabis group in significant merger for Europe

Synbiotic SE, the largest listed cannabis company in Europe, has made the acquisition of cannabis industry pioneer Daniel Kruse’s group of companies at a valuation of €11.2m (~£9.53m).

The 50.1 per cent acquisition of Kruse’s companies will see Synbiotic SE securing the subsequent acquisition of the remaining 49.9 per cent by option. With the acquisition of the companies, Hanf Farm, Hempro International, Hemp Factory and MH medical hemp, Synbiotic is raising its sales forecast for 2021 to €15m (~£12.76m).

Synbiotic has said that the addition of the companies will enrich its portfolio with vital infrastructures and profitable brands.

CEO of SynBiotic, Lars Müller, commented: “The co-operation with Daniel Kruse is a genuine accolade in the cannabis sector. SynBiotic SE will benefit massively from what amounts to over half a century of combined know-how gathered by industry pioneers Daniel Kruse and Rafael Dulon. 

“So far, the only comparable acquisitions have taken place in Canada. This makes this merger the most significant in the European cannabis sector. I am greatly honoured by the trust Daniel Kruse and Rafael Dulon have displayed in SynBiotic SE; this shows that we are on the right track with our vision.”

Read more: Psychedelic entrepreneur Christian Angermayer acquires SynBiotic shares

Kruse, president of the European Industrial Hemp Association (EIHA) and industry pioneer with more than 25 years of experience in the sector, commented:  “After 25 years in the hemp industry, it is a great pleasure and honour for me to have found the right partner for the coming decades with SynBiotic SE. Our decades of experience alongside the supply chain of our group of companies find an excellent complement in the enormous dynamics of SynBiotic SE.

“The appealing nature and charisma of Lars Müller and his team contribute, but it is above all their displaying the highest professionalism and efficiency that has won us over. This combination makes SynBiotic SE the next Unicorn candidate and an ideal partner for me. The European hemp and cannabis market is set to become one of the most exciting and successful industries in the coming years. The challenges yet to be mastered are well known, but the resulting opportunities are unlimited.”

Rafael Dulon, managing director of Hanf Farm, the largest organic hemp farm in Europe, and expert member of the International Institute for Cannabinoids (ICANNA), has also worked in the hemp industry for 25 years. He was awarded the Global Hemp Innovation Award at the World Hemp Congress in 2015 for the development of a hemp harvester.

Dulon stated: “The synergies created for Hanf Farm through its inclusion in the SynBiotic SE Group will lead to significantly faster growth. Within SynBiotic SE’s strong network of people and companies, we will be much better able to implement our ambitious goals in expanding our capacities and competencies as an original agricultural producer and primary processor of hemp.

“I am very pleased that Lars Müller fully supports my ideas for the development of sustainable, organic agriculture. Together, we will use the great potential of hemp in agriculture and market our healthy, climate-friendly products even more vigorously, and as well develop many new products. I look forward to using my many years of experience to help support Lars Müller’s vision.”

Synbiotic is listed on the Frankfurt and Düsseldorf stock exchanges and announced plans to begin listing on the Canadian NEO Exchange in Toronto in October. 

Continue Reading

Markets and industry

First-ever UK EIS and SEIS fund launched for cannabis

An SEIS and EIS fund has been launched in the UK that will target the medical cannabis sector.



First-ever UK EIS and SEIS fund launched for cannabis

For the first time, an Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) fund has been launched in the UK.

The launch of the first-of-its-kind MEDCAN Fund has been announced in a statement by Óskare Capital UK, which will advise the fund managed by Sapphire Capital Partners LLP.

Óskare said that the fund will invest in both early-stage UK companies and global companies that have the requisite operations within the UK to provide investors with access to a diversified portfolio of companies in the sector.

The Fund already has a pipeline of deals and will invest in startups across the value chain.

Óskare Capital UK director, Oliver Lamb, commented: “We were motivated to set up the MEDCAN fund with Sapphire Capital Partners LLP given that around 40 per cent of our European dealflow is coming from the UK, and the tax breaks investors can gain through the SEIS and EIS schemes are significant.”

EIS and SEIS are UK government initiative schemes that encourage growth and development by granting private UK investors significant tax breaks when investing in qualifying early-stage companies. 

The MEDCAN Fund team will specifically target leading companies in the UK which it considers to have strong IP and which are developing novel therapeutics that target the endocannabinoid system. It will also invest in companies that form part of the wider medical cannabis ecosystem of services and products.

Óskare highlighted the case of UK cannabis company, GW Pharmaceuticals, the producer of the FDA-approved cannabis-based epilepsy medication Epidiolex, which was acquired by Jazz Pharmaceuticals for (USD)$7.2bn.

Óskare Capital UK director, Nicola Broughton, said: “Whilst GW is clearly an excellent example of a UK success story in the sector, we believe that there are opportunities in the market with stronger intellectual property which address far wider ranges of medical conditions that would result in even greater exits.”

Continue Reading
Sign up for the Cannabis Wealth newsletter

Recent Posts