leadf
logo-loader
viewEco Equity

Eco Equity refocuses investments following coronavirus disruption to tourism sector

The medicinal cannabis group said it had made the decision to halt its advance into the segment after concluding that such a move was “too high risk to their investors’ interests"

Eco Equity - Eco Equity refocuses investments following coronavirus disruption to tourism sector

Eco Equity said it will refocus its investments away from the tourism and dispensary sector in the Caribbean due to the disruption of the tourism and cruise ship industry caused by the coronavirus pandemic.

The medicinal cannabis group, which is the pharmaceutical arm of investment vehicle JPD Capital, said it had made the decision to halt its advance into the segment after concluding that such a move was “too high risk to their investors’ interests to continue”.

READ: Eco Equity valued at US$210mln by consultancy Baker Tilly

“Eco Equity has been in discussion with the Antiguan government over several months to invest in Antigua with a retail project that would have added value to Antigua’s tourism income. Understandably, the [coronavirus] pandemic has had a huge impact on tourism globally, including in Antigua”, said Eco Equity chief executive Jon-Paul Doran.

“As such it is right for the Antiguan government to focus on increasing their visitor numbers and on a focused tourism recovery plan. With much regret, Eco Equity has had to review existing projects in Antigua and has decided that in the best interests of our partners and investors, we will be halting our expansion plans in Antigua and refocusing expansion and investment elsewhere. Our dual business model of Dispensary and Lounge was heavily dependent on cruise-ship tourism to the Island, as well as the smaller domestic market opportunity. Eco Equity would like to thank the Antiguan authorities for their support and hope that the future environment will be more beneficial for investment”, he added.

Eco Equity also said cultivation of cannabis for medicinal purposes at its licence in Zimbabwe has been delayed to the end of the fourth quarter of 2020 from the second quarter due to the pandemic.

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Eco Equity named herein, including the promotion by the Company of Eco Equity in any Content on the Site, the Company receives from said issuer...

FOR OUR FULL DISCLAIMER CLICK HERE

Eco Equity: Analyst expects rapid move to profitability and cash generation...

Proactive Research analyst Ed Stacey discusses Eco Equity which he says has established a unique position within the fast-growing market for legal cannabis. The company is in the process of developing a 30,000 square metre facility for the cultivation of cannabis and extraction and refining of...

on 10/6/20

2 min read