North American cannabis companies expand into European markets

North American cannabis companies are beginning an expansion into European markets following a period of volatility in the United States. While the industry previously experienced a “green rush” worth $30 billion, it later faced a cycle of boom and bust due to overspeculation, high taxes, and a patchwork of state laws.

A recent executive order to reclassify cannabis—moving it from the same category as heroin to being grouped with prescribed pain medications like codeine—has provided a boost to the industry by potentially reducing heavy tax burdens.

This regulatory shift has facilitated international acquisitions. In February, the Canadian company Organigram acquired the German medical cannabis firm Sanity Group for approximately $285 million. Additionally, in April, the American company Tilray acquired the British medical cannabis provider Lyphe.