RavenQuest BioMed (CSNX:RQB) Establishes a Solid Base in What is Set to Become the Biggest Cannabis Market in the World
RavenQuest BioMed Inc (CNSX:RQB) (OTCMKTS:RVVQF) (FRA:1IT) has signed a 50/50 Joint Venture Agreement with Cannabis Biocareto produce 35,000 kilograms a year of medical cannabis in Portugal in the towns of Vila Nogueira de Azeitao and Porto, starting with two cultivation facilities.
There are plans to expand beyond the Lusitanian borders. The JV, to be named “RQBeu” will adopt RavenQuest’s Orbital Garden Grow technology, cultivation expertise, intellectual property and beneficial microbes (developed in partnership involving with McGill University). Meanwhile, Cannabis Biocare will secure the all the funding and start-up expenses to build the cannabis production facility and obtain cannabis technologies-including orbital gardens.
RQBeu represents a momentous opportunity for RavenQuest, which expects to produce some 35,000 Kg per year. in the two facilities. Securing a solid foothold in the European Union’s emerging regulated cannabis market, possibly the largest in the world with its 700 million-plus population offers thrilling revenue generation prospects.
Most Europeans can already consume cannabis for medical purposes, as more and more States of the ‘Old Continent’ move to legalize consumption. Moreover, Cannabis Biocare benefits from an extensive network in Europe as well as North Africa and the Gulf region, which are candidates for further market expansion as legalization progresses. Yet, apart from the propitious expansion plans, the best news from the perspective of investors is the ‘Portugal connection’.
The decision to build RQBeu in Portugal represents a strategic advantage for RavenQuest.
Portugal has adopted clear legislation regulating the use of cannabinoids and other substances since January 2019 (pharmacies have started to sell prescription based medical cannabis products since July 2019). In 2019, a cannabis store opened in Lisbon, with more to follow; yet, Portugal represents a mere base from which to export throughout Europe, where RavenQuest clearly expects tremendous results thanks to its JV agreement with Biocare. It’s no wonder the country, a full EU member with direct and duty-free access to the entire EU market – has attracted many international cannabis industry leaders and stakeholders.
The European Cannabis Report predicts the cannabis market (THC alone – CBD, or cannabidiol does not require regulation as it’s not a psychoactive substance like THC) in Europe could reach a value of some 123 billion Euros (about USD 140.0 billion) alone, making it the single largest market in the world – 70% of this would go to the pharmaceutical side of the business and the remainder to the recreational. In 2019 alone, Over the past twelve months, the European cannabis industry has grown tremendously as six countries have announced new legislation that supports the cultivation, processing and sale of cannabinoids, stimulating investment. A recent change in government in Italy (free of the ‘Lega’ Party, one of the main obstacles to cannabis legalization) bodes well for one of the largest potential markets to open up as well. And RavenQuest will have secured the base from which to exploit all present and future opportunities within the European Union. The barriers are falling, and all indications are that the European market could surpass all others within the next five years, surpassing North America, and making it necessary for any cannabis company to establish a solid base of operations in the EU.
In this context, as the wave of cannabis legalization rolls across the Americas (and beyond), cannabis producers are popping up like mushrooms. There has been a veritable ‘green rush’, which has expanded the market to such an extent that investors are finding it difficult to identify the truly viable opportunities from the merely speculative ones. Enter RavenQuest BioMed. It is a Health Canada licensed cannabis producer with bases in Ontario and Alberta and with significant scientific cooperation agreements with McGill University in Montreal (Read more about this here).
RavenQuest’s growth prospects are excellent because its technical achievements have been excellent. In August, RavenQuest announced that its six distinct cannabis varieties (marketed as Brooklyn Sunrise, The Ultimate, CBD Compassion, CBD Kush, Charlotte’s Angel and CBD Skunk Haze) passed the requisite analytical tests. Health Canada inspectors examined RavenQuest’s manufacturing facilities in Markham and Edmonton, finding everything to be in order. And investors might find it reassuring to know that RavenQuest stock has been included in the cannabis-themed ETF ‘Horizons Emerging Marijuana Growers Index’ (NEO: HMJR).
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