This is not new
Lacking all the key details but I'll let others do the research about finance and restrictions etc but below is a start .
People need to do their own extensive research and understand the limitations You need to understand Malta politics and the local tough people. Lots of Maltese in Australia / UK to have a chat to and all have relatives still in home country.
It is all about the detail as usual but of course everyone here knows everything.
Friday, November 16, 2018,
the two-day forum, including two networking dinners, have sold out. Apart from the Prime Minister, Health Minister Chris Fearne, Economy Minister Chris Cardona, Parliamentary Secretary Deo Debattista, Labour MEP Miriam Dalli, various CEOs of medical cannabis companies and experts will be also be addressing the conference.
In April, Parliament legalised the production of cannabis for medicinal use, with the Malta Enterprise approving projects from Canada, Australia and Israel.
When the law was first presented in Parliament last February, Dr Muscat had said that large-scale cultivation was unfeasible and that he expected companies to import pre-processed cannabis oils for further refinement and preparation here, then exporting the product to the European market. He had later said that only few plants would be allowed to be used, restricted only to research and development.
Merrily manufacturing marijuana in Malta?
Selling real estate to tax refugees, offering a world-wide home to online gaming, selling Schengen passports to the needy: Malta has never been squeamish about earning good money for its citizens and its wily, profiteering businesses.
In March it opened a new line of business, legalising the farming and manufacture of marijuana – the first European country to do so. Malta Enterprise, the government’s agency for Foreign Direct Investment, has so far licensed five foreign operators to manufacture cannabis and cannabis-related products – three Canadian, one Israeli and one Australian – for a total initial investment of €30 million.
Some of the companies putting up tent in Malta are minnows, not much more than a bright idea, like ‘MGC Pharma’, which has set eyes on 4000m2 of farmland in Żejtun – very much to the anger of local crofters who used to farm on government-owned land and who were evicted to make space for marijuana-growing greenhouses in the Bulebel area.
MGC, set up only recently, had a modest, rather symbolic turnover of €120,000 in 2017, mainly representing start-up costs like “useful expenditure”, I would assume. Its main success so far seems to be a distribution agreement with Slovenia (If you think this sounds very much like the half-assed businessmen awarded University and hospital contracts in our country, you may be right; but then, to grow pot does probably not need much expertise, or entrepreneurial skills).
Others active in Malta, like the Canadian company Aphria Inc., are multibillion-dollar enterprises now in the centre of a worldwide investment frenzy.
Investing in these companies, which were all listed on the Toronto Stock Exchange over the last couple of years, some even on New York’s NASDAQ and the NYSE, has proven highly profitable. Gains of many hundred per cent within a year or two were the rule.
The Canadian grower Cronos Group, one of the least volatile of the cannabis stocks, for instance has gained 490 per cent within 12 months. This makes the past successes of bitcoin look almost pedestrian, with the difference that these companies are not just a digital chimera without tangible value like cryptocurrencies: they have sizeable capital investments, income, profits and solid business plans. They are GMP certified like big pharma, they are licensed by food safety agencies like the FDA in the US and even permitted to trade by the US Drug Enforcement Agency.
Big hashish-growing countries like Lebanon are flabbergasted. The Americans have forced them year after year to burn their crop and to dismantle their trade (not entirely successful). And now this. In the Beqaa valley hemp never needed greenhouses like Canada!
What suddenly made all the difference is that it’s now ‘medical’. Cannabis, cultivated for millennia, has many properties. Besides the psychedelic substance THC the plant, for instance, contains Cannabidiol (CBD) which has proven to be beneficial in treating various illnesses like epilepsy, multiple sclerosis, arthritis and post-traumatic stress syndrome.
For years sufferers of such ailments were forced to illegally smuggle cannabis products from Canada when in need of effective treatment. European drug regulators have now gradually eased restrictions and many countries like Germany are issuing distribution licences.
The flower buds of course cannot specialise as well as legislators might have wished for. Hemp species producing plentiful of CBD are also premier strains for a good high.
Legislators in many countries now factor this in and have started to legalise dope for recreational purposes. Smoking pot is now legal in nine US states, such as California, Colorado, Massachusetts and Washington DC. In Canada, smoking pot will become legal as at October 17, 2018 and it is expected that marijuana consumption will soon be legal all over the US, with European countries perhaps soon following suit. In Malta ‘medical’ marijuana was legalised on March 26, 2018.
The expected, worldwide triumphant progress in legalising pot is far from certain
What catapulted weed growers to the premier league of listed stock companies, with some of them now sporting a market capitalisation higher than most airlines or even oil companies, was of course not only promising medical applications but the prospect of a pot-smoking consumer-market worth hundreds of billions of dollars worldwide.
This potential is keenly observed by consumer brands, sprit companies, big tobacco and the soft-drinks industry. Aurora Cannabis Inc., a Vancouver-based company with a current production of 570 tons of cannabis per year (small competitors were gobbled up in the last 12 months), was contacted among others by Coca-Cola to talk about how to develop a cannabis-based soft drink.
Aurora, which sports a drug distribution contract with Germany and which also sells grower’s equipment and greenhouse engineering, was jolted forward by these first, tentative talks with the soft-drinks giant. It now has a market cap exceeding US$10 billion.
Canopy Growth, the Ontario-based company which has set up distributional operations in Spain, Germany, Denmark, Chile, Brazil, the Czech Republic, Australia and, yes, Jamaica – listed on the NYSE with the ticker code “weed” – in August received a capital injection of CAN$5 billion (US$3.9 billion) from Constellation Brands, the company behind Corona beer, which is now a 38 per cent shareholder of Canopy. They plan to open retail outlets in Canada and the US and to explore possible brand cooperation, product development and cannabis branding.
On the back of investor excitement, weed companies act increasingly reckless – and seem to get away with it. When Aphria Inc. most recently bought “Nuuvera” for almost half a billion, Aphria’s share price didn’t even flinch. And this despite the fact that Nuuvera had no experience in cannabis production, no turnover in 2017 and no assets. Its sole claim to fame was a victorious tender to supply German pharmacies and a monopoly import licence for Italy. This brings me back to Malta.
It was ‘Nuuvera Malta Ltd’ which this year acquired – as a first remuneration package for lobbyist and businessman Paul Apap Bologna – his and his partners’ ‘ASG Pharma Ltd’; with the intention to be the first in Europe to legally grow pot, medical or otherwise.
Helped by Keith Schembri and Konrad Mizzi, the sedulous duo promoting so vigorously Malta’s version of public-private partnerships, it was nevertheless made clear that the rapid legal process putting Malta on the forefront of marijuana farming was coincidental.
From a business standpoint I can appreciate the initiative. Even if it sounds seedy and Mafia-like, legal cannabis has a promising future. It pays off to be among the first. I just hope that Malta’s rural land will not be transformed into one gigantic greenhouse. Nature, rural and cultural heritage are the essential support for a booming tourism industry. Greenhouses, like windmills, no matter how important, are detrimental to sought-after vistas and the joys of atmospheric holidays.
For us retail investors not yet invested in this latest super-growth story it is important to understand that the expected, worldwide triumphant progress in legalising pot is far from certain. There’s a risk of class action lawsuits too, as smoking weed is even more harmful than tobacco. Medical applications, as promising as they may be, have a much more limited market when compared to millions of jangled consumers.
The consolidation process in the cannabis sector still has a long way to go, and mergers and acquisitions will stress some corporations to breaking point. All companies are in their infancy and it is not clear how savvy their founder-managers will act. Stocks are worryingly volatile – ups and downs of 50 per cent can be expected.
For those of us who have not gained a few hundred per cent already, which sadly includes me, it probably pays to wait and see. Consider investing into Coca-Cola or Corona beer instead.
Andreas Weitzer is an independent journalist based in Malta. He reports on the economy, politics and finance. The purpose of his column is to broaden readers’ general financial knowledge and it should not be interpreted as presenting investment advice or advice on the buying and selling of financial products.
Malta Enterprise approves large site for cannabis farming in south
Minister denies policy change
The proposed law on cannabis cultivation was agreed upon by both government and Opposition MPs at committee stage.
In a significant policy change, the government has decided to allow large-scale cultivation of cannabis plants, including the selling of flowers (buds), the Times of Malta has learnt.
Prime Minister Joseph Muscat had declared in Parliament that “only small-batch cultivation for research purposes” would be allowed. However, in a public announcement, an Australian company setting up shop in Malta, MGC Pharma, declared it had been awarded a 4,000 square metre site by the government to build and operate a cultivation and medical cannabis facility.
“The contract [with Malta Enterprise] provides MGC with an attractive new cultivation site in the EU, completing the board’s strategy to operate a fully-vertically-integrated medical cannabis operation in Europe,” company co-founder and chief executive officer Roby Zomer said.
Read: Malta Enterprise approves five medical cannabis investments
He said that, apart from cultivating the raw plant, “the contract [with the government] allowed the company to also sell medical cannabis flowers in the region, including Germany.
The Times of Malta sought to find out where the new facility and cultivation fields would be situated but questions sent to Economy Minister Chris Cardona remained unanswered. A spokeswoman would only say two sites were being considered by the government, both in the south. The newspaper is informed that one of the sites lies in the Bulebel area, which Żejtun farmers are resisting.
The spokeswoman rejected the argument that the government changed its policy on cannabis cultivation.
Watch: ‘Marijuana use is a personal choice’ – Chris Fearne
“Minister Cardona had stressed that no cultivation will be permitted merely for cultivation’s sake,” she said.
“The proposed law, as agreed to by both government and Opposition MPs at committee stage, provides that cultivation can be carried out as part of the production process and for scientific research purposes and strictly in a designated industrial area,” she added.
Shadow social policy minister Claudio Grech had said the Opposition was against the cultivation of cannabis plants as it could offer many possibilities of abuse.
When the law was presented in Parliament last February, the Prime Minster said large-scale cultivation was unfeasible and that he expected companies to import pre-processed cannabis oils for further refinement and preparation here, then exporting the product to the European market.
He had later said that only few plants would be allowed to be used, restricted only to research and development.
Cannabis contract signed but law not yet approved by Parliament
Ministry says company was told contract only executable once law is enacted
Updated 7pm with ministry statement
The government on Friday failed to explain how an Australian company had been given a contract to develop a 4,000 square metre facility to construct a medical production and cannabis cultivation facility in the south of Malta when the law making this possible had not even been approved by Parliament.
The Times of Malta is informed that the law on the production of cannabis for medical purposes is still being debated in Parliament and MPs are yet to vote on its approval at third reading.
According to Malta’s legislative system, a Bill becomes law only after MPs approve it at third reading in Parliament, it is signed by the President and is published in the Government Gazette.
Despite that the Production of Cannabis for Medical Use Bill is still on the agenda of the House of Representatives awaiting a final vote, MGC Pharma earlier this week said that “the Maltese government had given the Australian company the go-ahead to construct and operate a medical cannabis facility in Malta”.
Read: Malta Enterprise approves five medical cannabis investments
MGC co-founder and CEO Roby Zomer said the contract with the Maltese government “provides MGC with an attractive new cultivation site in the EU, completing the board’s strategy to operate a full, vertically integrated medical cannabis operation in Europe”.
He added that “the contract allowed the company to also sell its medical cannabis flowers (buds) throughout the region, including Germany”.
Asked on Friday to specify under which law the Maltese government signed the contract with MGC, the Ministry for Economy, headed by Chris Cardona, did not reply.
The Times of Malta has revealed that despite Prime Minister Joseph Muscat having said in Parliament that “only small-batch cultivation for research purposes” would be allowed and he expected companies setting up in Malta to import pre-processed cannabis oils for further refinement and preparation, it has now resulted that this will not be the case.
The MGC Pharma CEO made it clear that according to the agreement with the government, his company would be allowed to cultivate cannabis plants on its premises to use in its medical production facilities and to be able to sell cannabis flowers to other markets for medical use.
Asked how many cannabis plants the Australian company will be harvesting for its medical facility every year, the ministry did not reply.
PN social policy shadow Minister Claudio Grech said when contacted that the statement of the Australian company was baffling.
“According to the Bill pending approval in Parliament, anyone intending to carry out this business needs to obtain, among other requirements, a letter of intent from Malta Enterprise and a licence from the Medicines Authority. These cannot be issued, as the Bill is still pending approval by Parliament,” he said.
“We participated in the legislative process in good faith and sought to constructively address the massive risks which the original Bill contained, some of which we’re satisfied that we managed to do.
“However, if the company’s statement is factual, it makes it amply clear that we are being taken for a ride all the way regarding government intentions on the cultivation of cannabis in Malta”.
PN statement
The people deserved to know if it was true that the government had authorised a private Australian company to operate a medicinal cannabis when Parliament had not yet approved the Bill.
If the statement made by the Australian company was true, it meant that the government had ignored Parliament in a sensitive issue.
The government should say if it was true that a letter of intent for a contract or any other authorisation had been issued to the company or others for activity related to the production of cannabis for medicinal use.
Ministry statement
The Economy Ministry said the company in question was given a letter of intent from Malta Enterprise, subject to more than 20 provisions and conditions.
It states that the letter of intent is only valid and effective if/once the law regulating medical cannabis manufacturing is enacted.
"It makes clear reference that there will be conditions, regulations, and provisions in laws that will regulate the subject matter. It is clear that if the law is not approved by Parliament, the letter of intent has no value or legal validity."
This letter of intent can only be converted into an executable contract (eventually through the signing of the lease agreement with Malta Industrial Parks) once the law is enacted. The conditions in the lease agreement shall mirror the same conditions as stipulated in the letter of intent.
Malta Enterprise approves five medical cannabis investments
More under considerationMalta Enterprise has approved five projects related to the production of medical cannabis with a total investment of €30 million, the Ministry of Economic Affairs said on Monday.
The projects will create 185 new jobs.
Three of the projects are Canadian while the others are Australian and Israeli.
A law to regulate the production of medical cannabis is currently in the final stage of discussion in parliament.
Minister Chris Cardona said the legislation was continuing to draw strong interest from investors and other applications for investment in Malta were being considered.
Medical cannabis for animals in the pipeline
Malta Enterprise eyes foreign investment in veterinary cannabis sector
Malta’s cannabis rush could be set to continue as the government eyes up a new sector: animals.
Medical cannabis was legalised in March and Malta Enterprise has so far licensed five foreign operators to manufacture cannabis products, for a total initial investment of €30 million.
Malta Enterprise CEO Mario Galea said on Monday the government agency was now actively looking into regulating cannabis for veterinary purposes, allowing companies to manufacture medical cannabis and cannabis-related products for animals, as well as clinical testing services.
Mr Galea added that Malta Enterprise was also exploring the regulations surrounding traditional veterinary pharmaceuticals, which he said remained lacking in Europe – although they are regulated by the European Medicines Agency – and where Malta could take the lead in attracting foreign investment.
Mr Galea was speaking during the presentation of Malta Enterprise’s annual report for 2017.
According to the report, the agency approved a total of 128 projects by foreign and Maltese investors in 2017, which over the next three years are expected to create an investment of €249 million and 2,251 new jobs.
The projects included 19 foreign ‘greenfield’ projects – that is, involving the building of new facilities – many of which, Mr Galea said, were in new sectors which would allow the economy to diversify and ensure high-quality jobs in new niche areas.
The fastest growing sector in 2017, according to the report, was professional, scientific and technical activities, which grew by 21 per cent over the previous year in terms of its contribution to economic growth, equivalent to €265 million in gross value added.
It was followed by the quarrying, electricity supply and waste management sector, which grew by more than 10 per cent.
Economy minister Chris Cardona hailed the country’s economic performance last year, highlighting the GDP growth of 6.7 per cent, the third highest in the EU. He attributed the growth to the government’s speed in tapping into new markets and providing the necessary legislation and incentives.
Dr Cardona also dismissed as “nonsense” claims by the Opposition that the growth was due to increase in population, which he said was not based on any economic theory.
Electrogas shareholder is behind medical cannabis plan
Paul Apap Bologna, right, ran an 80-year-old healthcare family business, Associated Drugs Ltd.
The main promoter of the LNG-fired power station and a shareholder in Electrogas is also involved in the multi-million-euro medical marijuana production project, the Times of Malta is informed.
Paul Apap Bologna, who ran an 80-year-old healthcare family business, Associated Drugs Ltd, sat on the board of directors of Nuuvera Malta Ltd, registered on February 16 as Parliament was discussing new legislation to lift a ban on the manufacture of medical cannabis on the island, pharmaceutical industry sources said.
The company is owned by Canadian medical cannabis giants Nuuvera Inc. and Cannholdings Limited, a Maltese firm owned by Mr Apap Bologna, Trevor Camilleri and Mark Magri.
Nuuvera Inc. announced on Tuesday it had purchased Maltese firm ASG Pharma Ltd for €5 million with the aim of commencing medical cannabis products manu-facturing in Malta.
ASG Pharma Ltd was previously owned by Mr Apap Bologna, Consolidated Packaging Ltd, Evolve Ltd and BCGL Services Ltd. It operated from the same offices as Mr Apap Bologna’s drugs company. Nexia BT were its auditors.
Mr Apap Bologna denied reports that he was behind intense lobbying with Maltese government ministers, including the Prime Minister himself, for a change in law to allow cannabis manufacturing plants on the island.
“This is all hogwash. People say a lot of things,” he replied when asked.
This is all hogwash. People say a lot of things
However, he acknowledged that he was interested in the medical cannabis industry.
“I have been in the pharmaceutical business for the last 20 years and have been importing regulated narcotic and psychotropic drugs for medical purposes all along,” Mr Apap Bologna told the Times of Malta.
He said he had been in contact with Nuuvera since last summer and encouraged them to invest in Malta. He also confirmed he would be serving as board director of Nuuvera Malta.
According to the pharmaceutical industry sources, Mr Apap Bologna assured business partners during meetings in Canada last week that the law would soon make it through Parliament and that Malta’s doors would then be completely open for them.
Mr Apap Bologna did not reply when asked about his business trip to Canada.
The sources said the government, through Malta Enterprise, had already promised Nuuvera and Mr Apap Bologna advantageous financial support through ‘investment schemes’.
The government, the sources added, was also considering enlarging Bulebel industrial estate to accommodate medical cannabis manufacturing plants. Mr Apap Bologna, however, insisted Nuuvera was not interested in Bulebel.
In 2013, soon after Labour’s return to power, the government accepted Mr Apap Bologna’s offer for an 18-year multi-million-euro deal to build a new LNG power station in Delimara.
Mr Apap Bologna had roped in another two shareholders on the project: the Gasan and the Tumas Groups. Mr Apap Bologna is related to the Gasan family through marriage.
Mr Apap Bologna is considered by the industry sources to be “close” to senior government officials including the Prime Minister, his chief of staff, Keith Schembri, Tourism Minister Konrad Mizzi and Dr Mizzi’s predecessor, Edward Zammit Lewis.
The Bill being debated in Parliament will regulate the production of medical marijuana and place the island among the first in the EU to lay the groundwork for cannabis manufacturing, positioning it as a supplier in the EU.
Canadian firm planning Malta hub for medical cannabis
Malta will be used for the production and distribution of oil-based medical cannabis in Europe
A Canadian firm confirmed on Tuesday that it has taken over a Maltese pharma company which it plans to turn into a hub for the production and distribution of oil-based medical cannabis products to the emerging European medical cannabis market.
Nuuvera's CEO, Lorne Abony said the company has taken over ASG Pharma for a five million euro project.
READ: Three medical marijuana companies get letter of intent
He said his company wants to create a centre of excellence in Malta for the production and distribution of pharmaceutical grade cannabis products. To that end, ASG Pharma will adhere to the highest international standards for processing and extraction, distribution and security protocols."
The company does not intend to grow cannabis in Malta.
Antonio Costanzo, Nuuvera's Head of International Development, said the ASG Pharma acquisition is one in a series of deals which will continue to increase Nuuvera's global footprint in the medical cannabis industry.
"We will continue to build on our strong Canadian base with strategic international operations and partners in order to provide the consumer with the highest quality medical cannabis at a competitive price."
Nuuvera, a global cannabis company, is currently working with partners in Germany, Israel and Italy, and is exploring opportunities in several other countries, to develop commercial production and global distribution of medical grade cannabis in legalised markets.
