Cannabis seedlings at the Aurora Cannabis grow facility are seen in Montreal, Friday, Nov. 24, 2017. THE CANADIAN PRESS/Ryan RemiorzCanadian cannabis producers are likely to scale back their investments in Europe as they come under pressure to cut costs and deliver profit, two industry consultants said in a report released on Tuesday.
They, however, projected the current market at just a tenth of that value and said some Canadian companies may choose to follow two of the sector's big players - Aurora Cannabis Inc and Canopy Growth Corp - in trimming spending outside North America. Cannabis investment in North America has surged in the past three years as Canada became the first major country to legalize the drug for recreational use, giving its firms a head start at a time when Europe and U.S. Federal rules remain more restrictive.
When asked if Aurora was cutting investments in Europe, the company's managing director for the UK & Ireland, Don Perrott, said, "We have not changed our view that this market represents a significant opportunity, despite slower-than-expected growth to date across many EU member states."