While some investors might feel a bit skeptical about investments in South and Latin America in light of recent scandals among some cannabis companies, there still remain valid investment opportunities in the region. Canopy Growth Corp (TSX: WEED)(NYSE: CGC) announced that through its Latin-American focused subsidiary will be acquiring Spectrum Cannabis Peru in an move that will see the marijuana giant enter the Peru market in full force.
Spectrum Cannabis Peru will continue to operate with Canopy’s LATAM framework while leveraging Canopy Growth’s existing international cannabis production and patient/physician education resources. With Peru on the cusp on introducing new regulations for medical cannabis use, Spectrum Cannabis Peru is placed in an ideal position to capitalize on a potential new market in the region.
“We’re proud to welcome Peru to the growing family of Spectrum Cannabis countries and to have the chance to serve Peruvian patients and healthcare professionals in the future,” said Canopy Growth President Mark Zekulin. “Canopy Growth is a global leader in providing safe, regulated, medical cannabis and by leveraging our experience together with local expertise, we look forward to helping build a responsible Peruvian cannabis industry today and into the future.”
This acquisition falls in line with Canopy’s existing corporate strategy of pursuing first-mover advantages in foreign countries, aggressively expanding and acquiring existing companies in the markets. Earlier in 2018, Canopy made a similar announcement that they acquired Spectrum Cannabis Chile, a country which is well positioned as a leading research center in the continent. Other areas where the company has expanded to include Columbia with a fully licensed production facility as well as an interest in the Mexican market.
“With the full licensing of our 126-hectare farm, Spectrum Cannabis Colombia and Canopy Growth have demonstrated yet again our ability to execute and prepare for the rapidly rising demand that exists for medical cannabis,” added Spectrum Cannabis Managing Director Bibiana Rojas. “Our ambitious goal of sustainable regional production for medical cannabis is one step closer in Latin America and we’re proud to play a role in increasing the total potential production of Canopy Growth as it builds markets internationally.”
Canopy Growth shares shot up 13.3 percent today. In comparison the Dow Jones inched up just 0.4 percent while Tilray (NASDAQ: TLRY) and Aurora Cannabis (TSE: ACB) dropped 4.3 percent and rose 7.3 percent respectively.
Canopy Growth Corp Company Profile
Canopy Growth is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. Canopy Growth offers the world’s only medically approved vaporizers through the Company’s subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time. The Company has operations in 13 countries across five continents. The Company is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and through its wholly owned subsidiary, Canopy Health Innovations (“Canopy Health”), has devoted millions of dollars toward cutting edge, commercializable research and IP development. – Canopy Growth