Nova Scotia-based medical cannabis cultivator and processor Aqualitas has signed a definitive agreement to merge with Cannaray Limited, a prominent European medical marijuana company based in London.
Aqualitas CEO and founder Myrna Gillis explained in an interview that it is essential for people to understand that this is an integration story that’s rooted in Europe. According to Gillis, the two companies bring complementary expertise, and both hope for continued growth in Canada. Moreover, the merger will not result in layoffs, and Gillis plans to remain a board member of the newly combined entity.
Enhancing Stable Sales Growth Opportunities
One of the critical challenges faced by medical cannabis exporters is achieving stable and predictable sales growth. Regarding this issue, Gillis shared, “That’s what’s nice about this…We have more stability in the predictability of our own supply chain, but we also have diversity and integration for other activities as well.”
Cannaray has two medical cannabis divisions – Therismos GmbH in Germany and Therismos Limited in the United Kingdom, which offers the ideal setup for capitalizing on expected growth opportunities in the European medical cannabis sector.
Growth Potential in Germany and the UK
The German market is predicted to experience exponential growth due to the anticipated declassification of cannabis from a narcotic to a non-narcotic substance. A statement revealed that the merger positions the companies to play a leading role in Germany’s burgeoning cannabis market and create one of the few European seed-to-shelf operations in the UK and Germany.
Therismos has a partnership with Walgreens Boots Alliance’s German subsidiary, Alliance Healthcare/GEHE, which boasts over 4,000 partner pharmacies. Gillis emphasized the importance of having a diverse portfolio of customers to ensure business success: “It’s good to have a combination of different customers in your portfolio with different bite sizes.”
Aqualitas’ Vision for Expansion
Aqualitas is a privately-owned vertically integrated Health Canada license holder distributed across all Canadian provinces and overseas. For Gillis, Aqualitas remains her “baby,” as she’s committed to its progress and development. With this merger, Aqualitas will likely build upon existing growth strategies while it leaps into Europe.
Impact on the Global Cannabis Market
The merger between Aqualitas and Cannaray Limited marks an exciting moment for the global cannabis market, highlighting the potential for international integration and collaborative growth strategies. This partnership may pave the way for further cross-border partnerships and signal rapid advancements in the medical marijuana sector worldwide.
As countries continue to reconsider their regulatory stances on cannabis and its applications in medicine, companies like Aqualitas and Cannaray are poised to lead the way, solidifying their presence as pioneers in the evolving industry landscape.
Rita Ferreira
Rita is a seasoned writer with over five years of experience, having worked with globally renowned platforms, including Forbes and Miister CBD. Her deep knowledge of hemp-related businesses and passion for delivering accurate and concise information distinguish her in the industry. Rita's contributions empower individuals and companies to navigate the complexities of the cannabis world, and her work remains a valuable resource for those seeking a deeper understanding of its potential.
