We have already written about the fact that marijuana is big business, albeit medical or recreational. The US marijuana approval rate is on the rise and the rate of medical marijuana legalization is moving on an upward slope, slowly but surely. It won’t be long before recreational cannabis is legalized in pretty much every state in the USA. However, what people are not really paying much attention to is that the climate and perceptions of marijuana are also changing throughout the world as well.
Naturally, the Netherlands has always been lenient toward the recreational use of marijuana, which, for better or worse, is attracting millions of tourists on a yearly basis to Amsterdam, the European capital of cannabis. The Czech Republic has decriminalized marijuana. In Denmark, cannabis is still illegal but is somewhat tolerated. Estonia and Italy decriminalized it and believe it or not – North Korea actually welcomes marijuana with open arms. You are free to sell it, consume it, transport it and cultivate it. Uruguay also legalized marijuana and you can do pretty much whatever you want with it, just like in North Korea.
Obviously, the tides are shifting and investors could be rushing to Australia because a medical marijuana company called Phytotech is about to make an IPO. They plan on raising up to $5 million Australian dollars by offering 25 million shares at $0.20. This little stock market experiment is about to go down on December 22nd and their plan is to craft an image that is similar to Nestle’s Nespresso coffee machines. To be more specific, they want their brand to be the George Clooney of cannabis. It’s an interesting market approach but comparing your brand to Nespresso and George Clooney seems kind of ridiculous to begin with.
The company was founded in Perth in August this year. Yes, they are that young. Supposedly, south of the equator, they will be the first ones to be a publicly traded cannabis company. Their market is obviously not Australia but rather Canada, USA and Europe. How far will their market extend in Europe is pretty much anyone’s guess. The only thing that seems interesting to us is that they plan on cultivating marijuana in Israel, which is curiously the only country that is actually allowed to export cannabis. Business-wise, that sounds like a decent plan.
Fifty percent of the raised funds will be used in the development of new technologies and the rest will be used to acquire dispensaries all over the U.S. The rest of the funds will be poured towards working capital. It sounds like a good plan but for a company that is so young and already planning to take over the world, it may seem a bit rash even to the most zealous entrepreneur. Obviously, they either have the world’s cannabis legislation in the palm of their hand or they don’t really know what they’re doing. Time will tell but we wish them the best of luck because if they do this right, other companies could follow suit.