Marijuana Goes Global

Written by Jimmy Mengel
Posted March 16, 2018 at 10:34AM

We all know by now that marijuana has taken over the United States and Canada.

The U.S. market is projected to be a $14.5 billion business this year.

Canada is opening its doors for full regulation this summer, and is slated to bring in around $10 billion. 

Those are both massive markets, and I'm heavily exposed to each. But that isn’t what I’m excited about right now. I’m waiting for the entire globe to go green.

The international market will dwarf the U.S. and Canada… and the best part? Nobody is really talking about it.

You see, while the North American market has seen tons of news and investments, the international market has been almost completely ignored. And that is good news for new cannabis investors seeking to stake their claim on the biggest new industry I’ve seen in all my years of investing.

The international market for marijuana has been projected to hit $31.4 billion! That means it will more than quadruple in the next three years. It could hit $55 billion by 2025 and $140 billion by 2027. I dare you to find growth like that in any other industry.

Here’s where the cannabis money will be flowing…

Australia has announced plans to become “the world's number-one supplier” of cannabis, according to Health Minister Greg Hunt. Peak Asset Management has predicted that the Australian market will reach $1 billion by 2020 — quadrupling the current market.

Colombia legalized medical marijuana two years ago and in September it began giving out licenses to grow and export medical marijuana. Some analysts are calling it “the Saudi Arabia of legal pot.”

Uruguay has legalized recreational sales countrywide.

European countries like Austria, Belgium, Croatia, and the Czech Republic have decriminalized small amounts of cannabis.

Spanish recreational marijuana is slated for next year.

But my eyes are firmly fixed on Germany...

Germany legalized medical marijuana last year for seriously ill patients. It will also allow health insurance to pay for it, which is a huge step forward for the industry at large. Also consider that Germany has a population over 80 million, whereas Canada has around 36 million.

The population combined with the offer of insurance payments on medical cannabis could set Germany up to be one of the world’s largest medical marijuana markets. Some analysts see it becoming the number-one market in the world for medical cannabis.

“There’s so much more profit to be made in Germany than even in Canada,” according to Deepak Anand, vice president of government relations for Cannabis Compliance.

“Germany is also a gateway to the EU, and that’s the massive opportunity, in my mind.”

Germany is scheduled to start cultivating its own marijuana next year, which means current supply is coming from Canadian and U.S. companies like Canopy Growth Corp. (TSE: WEED) and Cronos Group (NASDAQ: CRON).

Canopy has been exporting to around 1,000 German pharmacies and has projected it will double or triple that by the end of this year.

Cronos has been in the German market since the beginning and has flourished. It even became the first pure marijuana play that uplisted to the Nasdaq exchange.

I’ve had both companies in my Marijuana Manifesto Portfolio for years, and moves like exporting to new countries have sent the stocks soaring hundreds of percent.

I have several more that will be expanding operations and will likely see the same type of success.

But the key here is that most of these international areas will start out as medical marijuana markets. So you need exposure to medical marijuana companies that will be eligible for exports and be able to supply these massive new markets with quality, medical-grade cannabis.

I have one company that is at the forefront of the global medical marijuana boom. It has just signed an agreement with the ICC International Cannabis Corporation to start providing medical marijuana overseas.

This company also has the benefit of a patented product that could be sold in any one of these global locations.

In the coming months, this company will be releasing the results of a new patent for clinical trials for rare cannabinoids. Results that could send the company through the roof. It has developed a time-release-type capsule similar to what you would have in any other type of pain medication. And it knows what it's doing — the CEO worked for the company that created OxyContin, which is a billon-dollar product now.

It's a fully-integrated medical marijuana and health care company and if this patent goes through, that will be a massive deal for the company and pain patients all over the world. It will also make early investors very, very rich.

I suggest starting a position before it locks down what could be a billion-dollar patent.

You can read more about it right here.

Godspeed,
jimmy-mengel-signature-fixed

Jimmy Mengel

follow basic @mengeled on Twitter

Jimmy is a managing editor for Outsider Club and the investment director of the personal finance advisory, The Crow's Nest, and cannabis stocks advisory, The Marijuana Manifesto. For more on Jimmy, check out his editor's page.

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