CROP Infrastructure Corp (CNSX:CROP) says it's set to open two CBD (cannabidiol) retail outlets in northern Italy under its Emerald Heights brand before the end of 2018.
It will launch its first line of hemp-oil-infused cosmetic and therapeutic products under the brand name Urban Juve.
In June this year, CROP announced the C$1mln acquisition of US distribution and Italian rights for 50 cannabis wellness products from The Yield Growth Corp.
The agreement granted CROP the licence to infuse Yield Growth subsidiary Juve Wellness Inc’s products with high CBD / low THC cannabis and exclusively distribute the products initially for three years, with annual renewals on achieving certain sales.
Exclusive rights
The deal gives CROP exclusive rights in Italy to the URBAN JUVE products, as well as non-exclusive distribution rights in the United States.
The same month this year, the firm announced a new joint venture deal in Italy, in which CROP owns 30% of the venture under the name of Xhemplar.
It is in partnership with the team from Xhemplar that it is now scouting for locations to open the two 2 CBD retail outlets in Northern Italy.
"We are excited to be partnered with CROP for the European launch of the URBAN JUVE hemp oil infused product line," said Penny Green, the president and chief executive of Yield Growth.
"CROP is a demonstrated leader in the international hemp market with affiliations to hemp production in Nevada, California, Washington, Italy and Jamaica."
Meanwhile, CROP Infrastructure's director and chief executive Michael Yorke added: "We are pleased with the URBAN JUVE branding initiative by Yield Growth and feel it will resonate with health and lifestyle consumers. We look forward to offering the URBAN JUVE products in Italy."
According to a study by Arcview Market Research and research partner BDS Analytics, worldwide sales of legal cannabis are forecast to reach US$57bn by 2027.
Growth markets
"During that period, spending in North America is expected to leap from $9.2bln to $47.3bln driven mainly by recreational use.
"The fastest cannabis market growth is expected to come from outside North America, especially Europe where the main growth driver will be medical applications," said CROP.
"Medical cannabis use will be fed by US$1.3tln estimated annual government-subsidised healthcare spending. The structure of the healthcare industry is expected to make Europe the number one medical cannabis market in the world."
CROP Infrastructuire shares advanced 7.41% to stand at C$0.29 in Toronto.