Investors eye Uruguay as medical cannabis export hub

September 11, 2019

Investors eye Uruguay as medical cannabis export hub

Very nearly six years after Uruguay fully legalized cannabis, investors are eyeing the South American nation as an export hub for medical cooking cooking pot.

Silverpeak Life Sciences Uruguay is in talks with investment bankers to raise $35 million to be able to increase manufacturing fourfold this season. Silverpeak, that will be among the country’s largest cannabis that are medical organizations, also intends to build a bigger removal laboratory in 2020.

Relating to Silverpeak Life Sciences CEO and U.S. cannabis investor Jordan Lewis, their prepared and desired expansion involves about 25 tons next 12 months. He stated that these are generally anticipating this expansion to build over $100 million in income.

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Investors have already been pouring funds into Canada plus the U.S. because they seek to benefit from more favorable cannabis laws, that have developed a really promising marijuana market that is legal. Uruguay’s cannabis economy, meanwhile, happens to be sluggish to build up regardless of the country being the very first in the planet to legalize cannabis that are recreational.

Lewis noted that Fotmer Corporation SA, Silverpeak’s wholly owned subsidiary headquartered in Uruguay, has asked the national country’s cannabis regulatory agency Ircca to improve its permitted annual production to 400 a lot of cannabis plants.

He included that Silverpeak will need to raise about $150 million between next 12 months and 2023 in the event that need for cannabis items warrants increasing theproduction of cannabis plants compared to that degree. The required funds is going to be raised possibly from public capital areas or by forming a strategic alliance with a larger company.

Silverpeak and its competing, ICC laboratories, are among thc compound a small number of organizations that have committed to Uruguay, setting up greenhouses and removal laboratories to be able to supply marijuana that is medical other countries in Latin America, along with to Canada and European countries. This 12 months could mark the start of commercial-scale exports as cannabis manufacturers use trade permits and item certifications.

Ircca has recently authorized $57-million worth of cannabis jobs since 2015. The agency happens to be reviewing other licenses for 21 jobs with a calculated value that is total of40 million.

The pace that is current of in Uruguay might alter as big USand Canadian cannabis manufacturers begin to look at the country as a location, Lewis stated. With sufficient federal government help, Uruguay could become the country that is first strike $1 billion in annual medical cannabis exports in as soon as 5 years.

He included that centered on their projections, Uruguay’s cannabis industry could possibly be considered a $ industry that is 100-million-plus quickly as the following year.

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