Towards Growth: Botanical Holdings

The pandemic has accelerated many obvious trends, including increased digitization. Another perhaps lesser-known trend that is gaining momentum is the interest and adoption of legal medical cannabis.

Investment firm Botanical Holdings is looking to take advantage of this ever-growing double-digit $ 1 billion opportunity.

Here we discuss the outlook for the industry and Plant Holdings with CEO Carl Esprey. He reveals why he believes he is in a position to meet the requirements of the growing European market.

First, please tell us a little about Botanical Holdings and its value proposition.??

Botanical Holdings is an investment company involved in the entire value chain of the legal medical cannabis industry. The industry is divided into five areas: cultivation, extraction, compounding, distribution and retail. The philosophy of Botanical Holding is to establish or invest in businesses across all these sectors.

Our main business unit, Eurocan, was founded in 2018 as a low-cost medical cannabis cultivator for the European market. Europe will overtake the United States and Canada to become the world’s largest legal cannabis market over the next five years. This expected development reflects the growing number of European countries that are actively responding to scientific research on the therapeutic effects of medical cannabis. Eurocan holds a medical cannabis cultivation license in Lesotho and a pre-license for cultivation production in Portugal through a local subsidiary.

Eurocan has established its business footsteps by building its own world-class growth facilities in Lesotho and Portugal. Construction of the Lesotho facility is now complete and a growing test cycle is currently underway. The Portuguese facility is scheduled to go live in 2022.

Eurocan is focused on becoming a world leader in the production of high quality cannabis products and extracts for medical use. This is achieved through vertically integrated, operational segmented supply chains, with growth businesses, especially in the Northern and Southern Hemispheres, to maximize annual yields.

Southern African Hemp Products is a low-cost hemp cultivation business of Botanical Holdings in Zimbabwe. Southern African hemp products have recently been certified by the Zimbabwe Department of Agricultural Marketing to be registered as an industrial hemp grower in Zimbabwe. Subject to the ongoing process of obtaining investment approval, the Southern African Hemp Products business will be carried out from an established 400 hectare farm (150 hectares under existing irrigation). Trial cultivation of 30 hectares is planned for the second half of 2021, and CBD extraction is planned onsite. Southern African hemp products meet the growing international demand for hemp seeds.

Unearthed Brands is the retail arm of Botanical Holdings, developing and prescribing a variety of wellness tinkis containing 300 mg of broad spectrum CBD and a variety of high quality, ethically sourced botanical ingredients. This range was developed in collaboration with a clinical aroma therapist. Unearthed plans to launch the US-based Unearthed series by the end of the year. Le’Sutu by Unearthed is the second consumer product in the sector, a CBD-powered skincare product designed for those who want to incorporate a small number of high-quality products into their skincare regimens. ..

The current climate presents challenges and opportunities-how did this apply to your business?

The Botanical Holding division continues to carry out its business strategy despite the pandemic.

In 2020, Eurocan completed the construction of the Lesotho facility as planned. This was achieved despite the additional challenges posed by the blockade of the community by COVID-19 and the need to prioritize the health of workers and communities as part of their commitment to safe and responsible cultivation. .. We then completed the first test growth cycle in early 2021, followed by a second test growth, with plans for further expansion later this year.

Despite COVID-19, we obtained a pre-license for cultivation in Portugal in 2020, and since then we have started the foundation work and civil engineering of the Portuguese facility.

Our greatest opportunity is the growing global interest and demand for medical cannabis products. In the United States, the Biden administration is expected to remove barriers to access to US medical cannabis products. In Europe, Spain has recently legalized cultivation, but France plans to launch a two-year medical pilot project. Without a doubt, medical cannabis is a fast-growing industry and Eurocan is ready to meet the demand for high quality, low cost cannabis products.

Growth catalysts are essential to the growth of your business-what do you think you are?

We have recently achieved many important milestones, including:

  • Completion of construction of Lesotho business
  • Start of growth business in Lesotho business
  • Receive a grant of € 4.3 million from the Portuguese 2020 Fund.

The main milestones that are expected to be achieved in the next 12 months are:

  • Construction of Portuguese business started
  • Expanded growth cycle and first sale from Resoto
  • Completion of construction in Portugal and start of trial cultivation

What are the biggest headwinds you anticipate to achieve growth in the coming months and years? How do you work on them?

Regulation remains the biggest barrier to growth in the medical cannabis sector. Cannabis has a record of demand and growth. It existed primarily outside the regulated medical field. We now have a much deeper understanding and awareness of the medical benefits of cannabis plants. As a result, demand for pharmaceuticals continues to grow. As new tolerant legislation is passed around the world and markets grow significantly, supply can overtake demand, which can lead to price pressure. Eurocan’s strategy to address these challenges is to focus its investment on low-cost production to ensure profitability regardless of price pressure.

Imagine riding a lift with Warren Buffett. What is your “elevator pitch” to summarize why he should invest in your business?

  • Science – Currently, there is important scientific evidence of the effectiveness of medical cannabis in the treatment of various health conditions and illnesses. Clinical trials around the world have demonstrated the potential treatment of cannabis in the treatment of conditions such as Alzheimer’s disease, cancer, and chronic pain associated with various conditions. Given the rapid aging of the world and the opioid crisis, it is more important than ever to be able to develop effective, cost-effective and non-addictive therapies and medicines.
  • Market Size and Demand – In 2018, the US medical cannabis market was worth $ 316 million. By 2023, the market is projected to be worth $ 8 billion. Within five years, Europe is projected to overtake the United States on a market scale, which will require a great deal of experienced, high-quality, low-cost producers.

Note: This interview is part of the ShareBuyers growth series. This series enables high-growth listed and pre-listed companies to share stories with retail investors.

Towards Growth: Botanical Holdings

Source link Towards Growth: Botanical Holdings

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