As part of its European expansion, CBD of Denver has announced that its wholly owned subsidiary, Luxora, has signed four Letters of Intent (LoI) to build production facilities for four Cannabis Clubs in Germany.
The news follows the recent announcement that the company will be expanding into Europe through the acquisition of HOLISTICH GmbH. HOLISTICH is a Swiss-based company with a location in Vienna, Austria, focusing on cannabis tissue cultures and offering cannabis production facilities high-quality cannabis clones.
In late August, Germany took a significant step towards the rollout of its adult-use cannabis framework after the country’s draft bill was approved by the Bundesregierung. The bill would see adults over the age of 21 able to purchase cannabis products from cannabis clubs.
In light of the development, CBD Of Denver has said it will be building its first grow facility to support the cannabis clubs with its production facility service, which will supply the clubs with exclusive strains of cannabis.
CEO of Luxora, Jan Schwager, stated: “Luxora has during its first few days after offering its services has already signed 4 letters of intent for Cannabis Clubs. This level of activity demonstrates the demand for this concept in Germany.
“We are very pleased with the initial two days of activity as this reinforces our belief in this business opportunity. Luxora has been positioning itself to be a leader in this space, due to the depth of our diverse management experience and our vision which includes our recent acquisition of HolistiCH enabling the company to offer exclusive strains to its clients.
“The company believes this strategy will separate us from the other players in the market giving us a competitive advantage and creating a barrier to entry.”
The company has confirmed it will provide updates as it works with four original groups and the Cannabis Club legislation is finalised by the German government.