Akanda pays $28 million for a Portuguese cannabis farm

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The British company Akanda acquires Holigen, the owner of a large cannabis production site in Portugal. To acquire it, she had to pay 28 million dollars, paid to Flowr. This Canadian company therefore separates from Holigen, one of its subsidiaries, less than three years after having acquired it. He realizes in passing a nice capital gain, since he had not paid more than 10 million at the time.

The first coveted site is in Sintra, in the Lisbon region. Even if it is small (2000m², the size of a large garden) it has a major advantage. He is certified Good Manufacturing Practice (EU-GMP). Translation: these products can be sold as medicines in the European Union.

In a statement, Akanda plans to harvest two tons of cannabis from this land. These varieties title “more than 25% THC”, rejoices the company. Such a level is rare, especially for temperate climates like Portugal.

The second site is outdoors. This means that these products will not be able to supply the medical cannabis market – because the plant must grow in a sterile environment – but could be sold in stores for adult use. It also has the advantage of its size: 65 hectares.

Opening of “recreational markets” in Europe

With this purchase, Akanda will therefore be able to provide “the nascent medical cannabis market in the UK” through its subsidiary Canmart. With the EU-GMP certification, he is also able to sell his cannabis to 21 member states of the European Union which authorize the medical use of cannabis.

But the British company is also anticipating the future. ” Even if the business model Akanda’s focus on existing medical cannabis markets, more and more European companies are opening up to recreational markets. And our company intends to supply these markets as soon as they open,” announces the press release.

CEO Tej Virk cites the example of Portugal, which may soon legalize cannabis. “The government is in active discussion to move forward on the legalization of cannabis for adult use, and Akanda will be there as the landscape evolves.”

For its part, the Canadian company Flowr, which sold the Portuguese site to Akanda, is in a new phase. According to Marijuana Business Dailythe company withdraws from all its markets “non-essential” and “expensive”. This includes Australia, Uruguay, and Spain.

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