A day after releasing its latest set of quarterly results, Curaleaf Fund (OTC: CURLF) announced a promising new product line in a market far from its own. The U.S. cannabis company said on Tuesday that a subsidiary has launched a new line of medical marijuana products in Germany.
This subsidiary, Adven, is deploying a petroleum product high in tetrahydrocannabinol (THC; the substance that produces the famous pot euphoria) to present its offers to the country. This will be followed by other products of different strengths in both oil and flower formats. Curaleaf / Adven will also introduce cannabidiol (CBD) formulations for eligible German patients.
“We are very pleased to bring our first medical cannabis products to market in Germany and, with the rapid expansion of our product range in 2021, establish ourselves as a leader From Europe the largest market for medical cannabis, ”said the company, citing Curaleaf International CEO Antonio Costanzo.
Compared to the United States, where recreational and medical marijuana is legalized in a handful of states, Europe is relatively more stringent. No country in the European Union has yet liberalized the sale and use for recreational purposes, and many of its countries categorically ban the drug.
So while Germany is indeed a relatively large market and medical marijuana is more profitable overall than its recreational counterpart, we shouldn’t expect a big bump in Curaleaf’s revenue. – at least not yet. The company cited an estimate indicating that the German medical segment could reach $ 2.1 billion by 2025. If it can capture even a modest portion of that market, it could see a decent increase in results. upper and lower.
With several encouraging first quarter numbers and now this promising news, investors are bullish on Curaleaf. On Tuesday, the stock was up 3.1%, a generally horrible day for the market as a whole.
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