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The cannabis sector recently benefited from the advancement of pro-cannabis legislation in the United States (US) and we believe the tide is starting to turn for the industry as volumes and renewed interest have returned to this undervalued sector.
Although the cannabis industry is starting to turn into a global opportunity, momentum has been slow. From the US to the European Union (EU), we believe the global cannabis industry recorded major advancements in 2021 and continue to have a bullish outlook on the long-term opportunity as the European medical cannabis market is forecasted to grow to over 3 billion euros by 2025
Germany is a market that we have been bullish on and believe the recent change in the government and their announcement to legalize recreational cannabis is a major positive for the cannabis industry. We consider Germany to be the most attractive cannabis market in the EU and are favorable on how 62% of patients in the country are covered by insurance. When it comes to the EU cannabis industry, we expect other countries to follow Germany and expect this to be catalyst for the global market.
Franchise Global Health: A Leading EU Cannabis Firm Starts Trading
Today, Franchise Global Health commenced trading on the TSXV under the symbol FGH. The leading EU cannabis company is led by a management team that has a proven track record when it comes to capitalizing on some of the most attractive international markets. With an extensive infrastructure in Germany as well as in 18 other countries in the EU, Franchise already has a first mover advantage after having received the first license to sell in Germany and we consider it to be a multi-national rapid growth story.
When analyzing the markets that Franchise has leverage to, we are most excited about the opportunity for the core business in Germany and further expansion across Europe. We believe these markets are in the early innings of a major growth cycle and are bullish on Franchise’s strategy to become a leading cannabis operator in the EU and other high growth international markets.
Franchise’s management team has been ahead of the curve when it comes to the cannabis opportunity in the EU. In 2017, the leading European cannabis company was granted the first license in Germany and sold the first gram of medical cannabis in the country. Since then, Franchise has sold more cannabis in Germany than several leading Canadian Licensed Producers (LPs) combined and we believe our readers should be aware of this.
Selling to More than 1,200 Pharmacies In Germany
Franchise is well placed to leverage the significant opportunity in Germany and Europe. Through strategic actions taken over the past year, Franchise is now in a strong position to supply and sell a steady stream of high-quality cannabis flower into a market that is experiencing supply and demand imbalances and has favorable economic conditions compared to North American markets. Franchise has a significant foothold in Germany already having sold EU-GMP certified medical cannabis to over 1,200 pharmacies and now has the cultivation capacity in place to satisfy growing demand across Europe
Last year, Franchise secured access to a 500,000 sq. ft. state-of-the-art production facility in Ontario that meets EU GMP standards and we consider this strategic agreement to be an inflection point for the business. The company has now evolved into a fully integrated cannabis company which has a platform that is extremely scalable
Has a Strong Balance Sheet and Catalysts for Growth
Since inception, Franchise has raised more than $56 million of equity raised privately with no warrants and we are extremely impressed by its ability to raise money in a challenging market. From a leadership standpoint, the management team is comprised of executives with a proven track record in highly regulated markets. A few members of the leadership team have been a part of some of the largest acquisitions in the cannabis industry and we consider this type of experience to be invaluable.
We classify Franchise as a business that has significant potential catalysts for growth. Going forward, the company plans to continue to capitalize on the medical market in Germany and we expect the future legalization of recreational cannabis in the country to be the most significant long-term growth driver for the business.
Another reason for our favorable view of the company is related to its leverage to the cannabis market in Israel. We consider Germany and Israel to be the two most attractive international markets and believe this is an important part of the Franchise story. Due to Franchise’ leverage to these markets, we expect interest in the business to rapidly increase as the story continues to advance and want our readers to be aware of this.
When you combine a growth company like Franchise with a sector that is trading at low valuations and poised for a strong rebound, we believe you have a recipe for success. Franchise possesses the traits that are needed to successfully capitalize on the global cannabis industry and we believe our readers need to be aware of the opportunity.
If you are interested in learning more about Franchise Global Health, please send an email to support@technical420.com with the subject “Franchise Global Health” to be added to our distribution list.
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Pursuant to an agreement between StoneBridge Partners LLC and Franchise Global Health (FGH) we have been hired for a period of 180 days beginning April 1, 2022 and ending October 1, 2022 to publicly disseminate information about (FGH) including on the Website and other media including Facebook and Twitter. We are being paid $6,000 per month (FGH) and were paid “ZERO” shares of unrestricted or restricted common shares. We plan to sell the “ZERO” shares of (FGH) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (FGH) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.
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