Frankfurt’s Deutsche Börse: The World’s Most Important Cannabis Stock Exchange
A funny thing happened on the way to the public markets for most of the world’s largest public (and Canadian HQ’d) cannabis companies.
Germany suddenly became the most important access point to global equity this year. Most certainly in the last few months as total volume of trades as well as the worth of the entire sector has jumped to a new level. And that is nowhere more evident right now than in Frankfurt — center of European finance if not access point to about 35% of total global institutional investment capital.
As a result, most of the big public LPs who are making so much of a splash on the American markets, are now left with both a public relations conundrum, and a unique pivot point in market development strategy thanks to recent events at the Deutsche Börse.
Look for my upcoming coverage of this issue soon in the cannabis industry press (Marijuana Business Daily).
However beyond or maybe because of this summer’s contretemps and the ongoing determination in the world of finance about who represents a “recreationally” or “medically” focused cannabis company, the industry (read public cannabis companies) has, in a unique twist, decided to answer back.
In a unique conference, to be held in Frankfurt on October 21–22, top industry CEOs from some of the world’s most interesting unicorns will be presenting together, under one roof along with top analysts and the German if not international press, for the first time. It’s also a picture of a start up industry story that is now making the world stand up and pay attention. Not to mention is about to reinvent the world of medicine.
It is a real first, in other words, on a host of fronts.
Why This Is Unique
It is hard for people to really wrap their arms around this one, but in the last four to five years, the global cannabis industry has not only established itself, but continued to expand at a rapid clip. At few other times, including most recently the Dot Com revolution, have so many companies so suddenly burst into a global and public space (and during the first digital revolution, with such a formerly stigmatized product).
The people gathering in Germany, in a medical only market, in other words, in late October, are people who have rocked the world elsewhere and know that this is a whole other ballgame. In Canada, in other words, these are the companies who are at the forefront of the recreational cannabis market.
So why are all these canna CEOs suddenly giving Frankfurt so much love?
They have to.
The market here is very different. The fact that all of these CEOs will be showing up in a foreign country to discuss issues of stockholders if not appear together before the German press in a sophisticated (large) global financial market, shows that they take Frankfurt very seriously if not strategically indeed. And even more intriguingly while there is another industry event in Germany that is already established in Berlin (see the amazing ICBC in April every year), there has yet to be a conference in the country, let alone in banking-focused Frankfurt, that addresses these issues head on. Not to mention with speakers with the chops if not public accountability, all together, in one space at one time, with one purpose.
It’s about time.
What is even more intriguing, or should be for investors in particular, if not regulators, are a group of companies coming together, for the first time, outside the U.S. if not American hemisphere to reset the debate in person. If not answer lingering questions about what are their intentions in medically focussed Europe as Canada begins its recreational market literally the week before.
Here, in the window to a world far beyond the American hemisphere, the Western cannabis market is meeting the East in an environment where German authorities (because of the environs) are setting the rules of engagement.
For those with nothing to do in the third weekend in October, in other words, this is a must-do, should be at, upscale and interesting event. So far, there has been no other forum auf Deutsch, organized across the industry, and brought together specifically to address these concerns.
If the success of the ICBC in other words was not testament enough to the growing, and legal B2B cannabis industry in Germany if not in Europe, the appearance of this investor conference, right before the German cultivation bid, round 2 is due, and after a summer of rollicking uncertainty at the Deutsche Börse should seal the deal.
Disclaimer: Marguerite Arnold will also be presenting at the conference.