Six months ago, Canopy Growth announced a strategic partnership with Alcaliber, S.A., a Spanish company that specializes in the breeding, cultivating and extraction of Narcotic Raw Materials and Active Pharmaceutical Ingredients. Bloomberg reported today that it is the front-runner among three companies in the running to buy Alcaliber, with the rumored price between 200 million and 275 million euros. The winner could be announced next month.

At the time of the agreement in September, Canopy Growth called it “the first of its kind between a Canadian cannabis company and a significant, established international pharmaceutical player.” Alcaliber, according to Canopy Growth, has a license to “cultivate, produce, manufacture, export/import, and commercialize cannabis for medical and scientific purposes by the Spanish Agency of Medicinal Products and Medical Devices,” which enabled Canopy and its subsidiary Spektrum to license Alcaliber certain strains and seeds to be grown.

Entering this agreement with a large, well-recognized European partner like Alcaliber, with a proven background in controlled substances and an ability to produce plant-based medication solidifies our commitment to diversified production capabilities not just in Canada, but also new and emerging cannabis markets.

Bruce Linton, Chairman & CEO, Canopy Growth, speaking in September 2017 of the partnership with Alcaliber

This agreement gives us additional resources to aggressively enter the European market where federally permitted by law, while we continue to work to establish our own complementary production footprint for cannabis cultivation, value-add oil extraction and Softgel production in the European Union.

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Exclusive article by Alan Brochstein, CFA Facebook | LinkedIn | Email Based in Houston, Alan leverages his experience as founder of online communities 420 Investor , the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures , he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha , where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter