Vinergy Resources Ltd./ MJ Biopharma (CSE: VIN.CN) (OTCQB: VNNYF) announced to acquire up to 51% of a European multinational plant breeding company, establishing it as a leader in the global cannabis industry.
The European company is a leader in the development of plants and plant genetics and has been providing global customers with various commercial agriculture services for over 25 years, with audited annual sales in excess of CAD $14,000,000 and adjusted EBITDA of over $2,000,000. In 2016 they shipped over 35,000,000 plant products to the global marketplace.
With the help of Vinergy, the European company has the capacity to expand rapidly into the hemp, cannabis and cannabinoid (CBD) sectors across Europe. “CBD is revolutionizing the global chronic pain management market and we have determined we can utilize our first mover advantage to take a leading market position in multiple countries,” CEO of MJ Biopharma, Mr. Kent Deuters said. “Given the current marketplace dynamics, existing customer base and technology we now have access to; we plan to immediately roll out several new hemp and CBD initiatives. Additionally, it’s important for our investors to know that we are diversified and not totally dependent on the cannabis space but have multiple complimentary revenue verticals.” According to a new report by Nova-Institute and HempConsult, Europe’s market potential for cannabidiol (CBD) is expected to be €2 billion as a treatment for chronic diseases. The Hemp Business Journal has predicted that the total U.S. CBD market will grow to a $2.1 billion market in consumer sales by 2020 with $450 million sales coming directly from hemp-based sources.
The acquisition will help Vinergy to access to an extensive catalogue of over 2000 hemp and cannabis strains with the ability to supply those strains to customers globally.
Mr.Kent Deuters, CEO of MJ Biopharma, said “Our goal has always been to control every step of the production process, from genetics, right through to extraction, ensuring only the highest quality extracts are used in the formulation of our strips, time release capsules and other products currently under development for the medical and recreational cannabis space.” Terms and conditions of the pending acquisition were not disclosed.