Name: Seed Innovations' McDermott on the cannabis investment opportunity
Uploaded: 2023-01-19T18:33:41.422618+00:00
Duration: 2491 s
Channel: Master Investor

Master Investor

Cannabis has long been surrounded by stigma and misconceptions remain. However cannabis-related companies have now listed on the UK stock exchange and investors have exposure to the plant and its benefits. 

Ahead of 2021’s Cannabis Europa London conference, Ed McDermott founder of Emmac Life Sciences and chief executive of Seed Innovations talks to Master Investor about cannabis’s corporate history and the multiple investment opportunities in the cannabinoid space.

<p>Cannabis has long been surrounded by stigma and misconceptions remain. However cannabis-related companies have now listed on the UK stock exchange and investors have exposure to the plant and its benefits. </p><p>Ahead of 2021’s Cannabis Europa London conference, Ed McDermott founder of Emmac Life Sciences and chief executive of Seed Innovations talks to Master Investor about cannabis’s corporate history and the multiple investment opportunities in the cannabinoid space.</p>

The perception of cannabis

The difference between cannabis and cannabinoids

Players within the cannabis industry

The purpose of Emmac Life Sciences

Challenges to the cannabis industry's growth

ESG concerns towards cannabis

The market opportunity

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Cannabis has long been surrounded by stigma, and misconceptions remain. With cannabis-related companies now being listed, do they have credibility? Sarah Lowther asks Ed McDermott, founder of Emmac Life Sciences and chief executive of Seed Innovations.

While cannabis refers to the plant itself, cannabinoids represent specific molecules taken from that plant. For investors, the two key cannabinoids currently comprise THC (a psychoactive, government-regulated compound) and CBD (a non-psychoactive, over-the-counter compound). Research is also starting to uncover additional benefits of another cannabinoid, CBG.

As a broad sector, the cannabis industry comprises R&D, cultivation companies and extraction (processing/manufacturing) companies as well as distribution players for over-the-counter products, such as retail outlets, pharmacies, health and wellness stores. Other elements of the industry include textiles, or oils for nutraceutical products.

Emmac Life Sciences was founded in 2018 after a gap was spotted in the European cannabis market. It quickly grew through acquisitions, and is now owned by the world's largest cannabis company.

Key challenges facing the cannabis industry include access to capital, a poor market sentiment as well as US-led prohibition. While a global opportunity exists for cannabis, cannabis-related companies remain at the mercy of policymakers and regulators, and positioning their business accordingly is seen as the key to success.

Several innovations, such as outdoor growing or the use of biomass post-extraction, help to address some ESG concerns towards cannabis. Products are also increasingly being designed around the less harmful vaporizing technology, and inhaling is often the more effective use for some medical conditions. While many ESG concerns still need to be addressed, the main challenge for some cannabis-related companies currently is to stay in business.

The cannabis industry is currently still embryonic, requiring years to reach its full potential and for major brands to emerge. Regulation is seen as key. On the medical front, a quasi-recreational state is anticipated.