How to Capitalize on Europe's Cannabis Shortage -- CFN Media

Whitefish, Montana--(Newsfile Corp. - August 25, 2020) - CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the leading media network dedicated to the global legal cannabis, CBD and psychedelics industries announces an article discussing Europe's cannabis shortage, and how Isracann Biosciences, Inc. (CSE: IPOT) (OTC Pink: ISCNF) stands to benefit from Israel's recent decision to permit medical cannabis exports to the European market.

Isracann Biosciences Logo

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The North American cannabis industry has become a multi-billion-dollar powerhouse over the past few years. Canadian licensed producers have become global leaders in the production and sale of cannabis flower and oil while the United States has become one of the largest end markets in the world following state-level legalization efforts.

In Europe, many countries have started to legalize medical cannabis, but the cultivation remains largely off limits. For example, Germany imports 40% of its total cannabis flower from the Dutch Office of Medicinal Cannabis (OMC) and most of the remaining supply of cannabis flower comes from Canadian licensed producers.

Let's take a closer look at how these dynamics have created a cannabis shortage that could only get worse as the world recovers from COVID-19.

European Cannabis Demand

The COVID-19 pandemic hasn't slowed down cannabis demand throughout Europe, according to New Frontier Data, with 42.6 million consumers spending an estimated $68.5 billion per year in regulated and unregulated markets. Not surprisingly, European consumers are seeking out cannabis for relaxation, stress relief and stress reduction during these uncertain times.

Monthly Unregulated Sales Per Popular Purchase Amounts: January-March 2020

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The long-term outlook for Europe is even better. Prohibition Partners expects the European cannabis industry to reach €123 billion by 2028, making it the world's largest cannabis market by population and revenue potential. With over €500 million in investment and six countries introducing new legislation, the region is already well on its way to meeting these estimates.

Lack of Domestic Cultivation

Europe still imports most of its cannabis from The Netherlands and Canada. While Bedrocan of The Netherlands supplies most of Europe, four Canadian licensed producers have built up a presence in Europe through acquisitions and licenses, including Aurora Cannabis, Canopy Growth, Tilray and Aphria, and several others are in various stages.

There are some efforts to increase domestic supply with German production efforts underway and Italy's announcement that it would triple the amount of medical cannabis it produces this year. Despite these efforts, most analysts expect that regional demand will far outweigh supply for the foreseeable future, forcing Europe to look elsewhere for products.

The shortfall in supply has led to many other nearby regions exploring cannabis cultivation. For example, Israel has a favorable climate for year-round cannabis cultivation and is located in close proximity to Europe. The country's recent decision to permit medical cannabis exports has opened the door to supplying the European market.

Opportunities for Investors

There are several ways for investors to capitalize on Europe's cannabis shortage and ongoing supply constraints. While large Canadian licensed producers with European assets are a natural choice, they are far from a pure-play and their performance is heavily dependent on domestic Canadian supply and demand dynamics.

Isracann Biosciences Inc. (CSE: IPOT) (OTC Pink: ISCNF) is one of the few companies with near-term production and proximity to European end markets. Based in Israel, the company has an expected annual capacity of more than 23,000 kilograms from dried cannabis at its Cannisra farm with anticipated production costs of just $0.40 per gram-yielding attractive margins.

In addition, the company's joint venture, Cannation Ltd., in the Hefer Valley region is nearing the completion of Phase I construction and already has offtake agreements with Focus Medical Herbs Ltd., an Israeli licensed producer. The property contains a 55,000 sq. ft. greenhouse that's finished and awaiting final security inspection.

Looking Ahead

The European cannabis has experienced tremendous growth over the past few years as governments liberalize their policies and investors pour in capital. Despite efforts to boost domestic production, most experts agree that the region will be export dependent for the foreseeable future given the robust demand growth.

Isracann Biosciences Inc. (CSE: IPOT) (OTC Pink: ISCNF) is well-positioned to capitalize on Europe's cannabis shortages and long-term growth with its low-cost production, favorable climate and proximity to Europe. As it approaches commercialization, investors may want to take a closer look at the stock over the coming months.

For more information, visit the company's website at www.isracann.com.

Click here to read the full article: https://www.cannabisfn.com/how-to-capitalize-on-europes-cannabis-shortage/.

Company Contact:

Isracann Biosciences, Inc.
Darryl Jones
CEO
Djones@isracann.com

Sources

https://mjbizdaily.com/germany-faces-potential-temporary-supply-shortage-of-cannabis-flower/

For more information, visit the company's website at www.isracann.com.

About CFN Enterprises Inc.

CFN Enterprises Inc. (OTCQB: CNFN) is a digital media and ecommerce company focused on advancing businesses and brands in highly regulated emerging industries across the globe. CFN connects investors with new market opportunities while helping consumers find innovative products that enhance their lives. Learn more at www.cfnenterprisesinc.com.

CFN Enterprises Inc. Media Contact:

CFN Enterprises Inc.
+001 (833) 420-CNFN
investors@cfnenterprisesinc.com

FORWARD-LOOKING STATEMENT

Use of Forward-looking Statements

This press release may contain forward-looking statements from CFN Enterprises Inc. within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and federal securities laws. For example, when CFN Enterprises Inc. describes the potential acquisition of BarNone assets and the related benefits, its pursuit of M&A opportunities, growth in CBD sales and spending on affiliate marketing, and uses other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions, CFN Enterprises Inc. is using forward-looking statements. These forward-looking statements are based on the current expectations of the management of CFN Enterprises Inc. only, and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: regulatory and licensing risks; changes in general economic, business and political conditions, including changes in the financial markets; the regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; changes in applicable laws; compliance with extensive government regulation; public opinion and perception of the cannabis industry; we may be unable to retain or attract key employees whose knowledge is essential to the development of our products and services; or, loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of CFN Enterprises Inc. to differ materially from those contemplated in such forward-looking statements. Except as otherwise required by law, CFN Enterprises Inc. undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risk and uncertainties affecting CFN Enterprises Inc., reference is made to CFN Enterprises Inc.'s reports filed from time to time with the Securities and Exchange Commission.

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