Medical Cannabiz World Summit keynotes and panel debates discussed topics such as regulation in different territories around the world and patient charters to ensure best practice in healthcare when prescribing medical cannabis.

“The quality of medical cannabis preparations is of primary concern and advances in chemistry and tech as well as in-depth study of endocannabinoid systems are mitigating some of the challenges in the field, including standardisation concerns,” said Maltese MP Deo Debattista during the first day of the event.

“Regulation of cannabis for medicinal and research purposes in Malta follows a route comparable to that implemented for the pharmaceutical industry and controlled medicines,” the MP added.

“Everyone is talking about cannabis regulation, but what will the industry look like post-regulation? One thing is clear: the big whales will enter and dominate,” said CMTREX Founder-CEO Saul Singer in a different speech.

Malta Enterprise’s Marion Zammit said that “the process for obtaining a licence has been kept clear and transparent and the evaluation process is rigorous and scrutinous.”

CannaKids CEO Tracy Ryan said the pursuit of medical cannabis as a treatment for her daughter had played a huge role in what she calls a miracle story. “The doctors said we cannot explain what we are seeing, we would like to give the credit to medical cannabis,” she described.

While medical cannabis is gaining ground internationally, Europe has traditionally been seen as a slow-adopter: in some countries talking about cannabis is still stigmatised. “We are living in a schizophrenic situation where the industry in medical cannabis is growing very fast, while in Europe, research in cannabinoids has really been slowed down by stigma,” said Professor of Psychology at the University of Malta Giuseppe di Giovanni.

As part of Malta Week, the AIBC Summit Malta is taking place on 7-8 November, exploring emerging technologies such as distributed ledger technologies (DLT) and artificial intelligence (AI) to provide unique solutions to any industry.

“We made it our intention to be at the forefront of this exciting new success story for medical cannabis and to create an environment where deals can be made and the global industry can flourish,” said Eman Pulis, Founder and CEO of organiser SiGMA Group.

“We are proud to play an integral role, planting the seeds of growth for so many diverse contributors to the medical cannabis sector. We’re not just part of the conversation—we’re starting the conversation,” he added.

SiGMA Group is now taking the medical cannabis expo to South East Asia in June 2020. The event will be closely linked to SiGMA Group’s sister show—AIBC Summit—bringing blockchain and medical cannabis together, as well as bridging continents between east and west.

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The eleven categories of the awards include “Producer of the Year”, “Distributor of the Year” and “Non-profit of the Year”. Some 20 experts from the medical cannabis industry will assess the nominations and select three finalists for each category. Another nine judges will pick the winners out of the shortlisted top three.

Furthermore, the ceremony is combined with a charity dinner hosted by SiGMA Group, the organiser of the Malta Medical Cannabiz Summit. The fund-raiser will auction a selection of artworks with all proceeds going to the SiGMA Foundation and SavingSophie.org, which is a medical cannabis-related charity supporting care treatment for Sophie Ryan and other young cancer sufferers who can benefit from medical cannabis treatments.

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In 2018, the Maltese government was one of the first countries in Europe to have passed the legislation for the production of medical cannabis. Since then, Malta Enterprise, the economic development agency of the island nation, says that it has signed over ten letters of intent with companies who would like to set up a manufacturing base in Malta and start exporting medical cannabis products from the island. Malta Enterprise was unable to share the names of the companies it had signed letters of intent with on Business Malta’s enquiry, as the Business Promotion Act and Malta Enterprise Act stipulate that such information cannot be shared with third parties.

Malta Enterprise is an avid promoter of the island, globally, and offers instant support for companies looking this way. “Being in continuous contact with our companies gives us the opportunity to listen and act fast on suggestions put forward by the operators within the sector,” Malta Enterprise tells BM. “From the already established pharmaceutical and life sciences sector and the attractiveness of medical cannabis industry in Malta, it is clear that Malta is seen by many companies as a potential central hub from where to supply Europe and elsewhere with very high-quality pharmaceutical products.”

The island nation’s efforts in the area are visible globally. “Malta has a long history of claiming and supporting nascent industries and cannabis is clearly no exception,” points out David Attwood, Head of Consultancy at Prohibition Partners — a consultancy firm for independent data, intelligence and strategy for the international cannabis market. “Market forecasts are always difficult to predict but Malta’s pro-business framework and liberal legislation definitely helps position the country to benefit from the emerging cannabis market,” Mr Attwood tells BM.

With its 316 sqkm and a population of around 460,000, Malta’s medical cannabis market is rather limited in size, hence companies are looking to set up in Malta to primarily fuel their proposed export operations from the island, into neighbouring markets.

“Liberal cannabis policy and pro-business frameworks are helping position Malta as a market of interest for investors, operators and importers.”

“Liberal cannabis policy and pro-business frameworks are helping position Malta as a market of interest for investors, operators and importers,” Mr Attwood says. “Despite being a domestic small market, Malta is able to offer expertise in pharmaceuticals, cultivation licences and export potential to the rest of Europe, which is a lucrative opportunity for the international cannabis producers,” adds Mr Attwood.

“After the ‘Production of Cannabis for Medicinal Use Act’ was introduced, Malta received an influx of investment from foreign firms hoping to gain a foothold in the European market. Certainly, the big Canadian firms have shown an interest, hoping to gain access to the European medical market,” Mr Attwood says.

Setting up shop

Some companies have already come to light about their intentions related to establishing an operations arm in Malta. MGC Pharmaceuticals, who will be opening their pharmaceutical division in Ħal Far, for instance, told Business Malta that they were approached by Malta Enterprise to come to the island.

“The first thing that directed our attention to the island was an email from Malta Enterprise. They did an excellent job of analysing the market and reaching out to mature, responsible companies in order to build the industry here correctly,” Nativ Segev, Founder and Director of MGC Pharmaceuticals, tells BM. “Once we made contact, we started looking at the island more closely, from several perspectives: geography, operating conditions, financial implications — just to mention a few —, and we found nothing wanting in comparison to other European countries. At the same time, we have experienced a very welcoming local mechanism for assisting us in various ways,” he adds.

Other companies such as Mera Cannabis and MPX International have been attracted to Malta due to its strategic geographical location and already existing pharmaceutical and nutraceutical manufacturing sector.

“Malta has had an established licencing process around cannabis production,” W. Scott Boyes, chairman president and CEO of MPX International (MPXI) tells Business Malta. “When we made our move into Malta in 2018, Germany and Denmark were the only two other countries with this type of regulatory infrastructure in place. The transparency and clarity that this type of structure has provided us with the confidence to move forward and now we are creating another first-mover advantage for MPXI and will be one of the first companies to be producing, selling and exporting medical cannabis products in and from Malta to the rest of Europe,” Mr Boyes adds.

“The Maltese government is determined to play a pivotal role in the growth and development of the medical cannabis market in Europe.”

“The Maltese government is determined to play a pivotal role in the growth and development of the medical cannabis market in Europe. These products require additional processing and manufacturing, so having these capabilities within the European Union will allow for more efficient manufacturing and distribution,” Emily Ondercin-Bourne, Marketing Manager of Mera Cannabis, tells BM. Mera Cannabis (formerly known as Avana) says it will be focussing on more patient-friendly intake methods, such as capsule, topicals and sublingual products. This will require additional processing and manufacturing, making Malta the best choice for the European distribution of such products, Ms Ondercin-Bourne adds.

Malta Enterprise, furthermore, aspires to make Malta a research centre for medical cannabis, focussing on product development, new therapeutic strains, new product formulations, and clinical research, as Business Malta has learnt.

MGC Pharmaceuticals aims to focus on its clinical products and believes that in the coming years, pharmaceutical solutions will change the paradigms of global treatment. MGC intends to put Malta at the forefront of innovation and research globally, according to Mr Segev. “MGC Pharma’s facility will be one of the first commercial EU-GMP grade production and research facilities in the country within the medical cannabis sector,” the MGC founder adds.

“The facility will expedite the development of expertise for cannabinoid-derived medicines and research in Malta with subsequent products to be delivered into the European Union and global markets, which because of Malta’s location, trade agreements, and low corporate taxation, become easier for MGC to access,” says Mr Segev.

Similarly, MPX International aims to change attitudes and perceptions toward the benefits of cannabidiol (CBD) — an ingredient in the focus of a new area of cannabis research, and becoming trending in the natural products industry — as a wellness product. “By creating first-mover advantages in markets such as the European Union through initiatives like our Malta operations, we are positioning the company and its brands to be some of the first contacts with medical cannabis products that many Europeans may have,” Mr Boyes tells BM. “We believe this strategy will create strong brand awareness and loyalty, helping us capture market share and helping drive the company’s success.”

MPX International has also partnered with Bortex who will oversee their day-to-day operations and provide on-the-ground expertise once MPXI’s manufacturing facility in Valletta is operational. The approximately 110 sqm facility was previously owned by a Maltese pharmaceutical company specialising in GMP packaging and distribution.

“With a combined population of more than 740 million, Europe represents an extremely large and relatively untapped market.”

“We expect to be producing more than 90 different product SKUs [stock-keeping units] for export to legal medical markets across Europe. With a combined population of more than 740 million, Europe represents an extremely large and relatively untapped market and we are working to become one of the first go-to brands there,” continues Mr Boyes. MPX International will be producing GMP-certified finished medical cannabis products under the Salus Biopharma brand, MPX International’s pharma-grade medical cannabis company.

Mera Cannabis will use the Maltese facility to supply the broader EU medical market and leverage CannaWay Clinic, its domestic network of medical clinics, to establish access to medical cannabis in countries that do not have the medical expertise or infrastructure. “The European production facility will process imported crude cannabis oil into medical products such as tinctures, capsules, topicals or strips,” Ms Ondercin-Bourne tells Business Malta.

Supplying Europe

“Malta — having been one of the first to regulate — will be able to become a key player in supplying the European Union with very high-grade pharma product produced under GMP conditions through the regulator of the production of medical cannabis products in Malta; the Malta Medicines Authority,” Malta Enterprise says. The Malta Medicines Authority is one of the first eight inspectorates outside the United States to be recognised by the US Food and Drug Administration (FDA).

Mera Cannabis expects the European market to evolve following a similar trajectory to the Canadian medical market. “Our experience in the medical market in Canada through CannaWay Clinic has taught us how to work with physicians and what is required to adopt medical cannabis treatment plans as part of a larger approach to healthcare. We plan to replicate this approach in countries where governments are supportive of medical cannabis but need help providing access to patients in a responsible and physician-driven way,” says Ms Ondercin-Bourne.

Furthermore, MPX International also suspects that the European market will continue to open up much like that in the United States or Canada. “We will continue to see countries explore, vote on and adopt both medical and recreational legislation in some form. Already, CBD is legal in 27 European countries and that number will likely rise. With the normalisation of cannabis and the social justice and economic benefits that are associated with its legalisation, that is how we see things continuing to evolve,” Mr Boyes tells BM. “And we also believe that MPXI is uniquely positioned to take advantage of this fragmented market; we have significant experience building a successful enterprise over multiple jurisdictions with our recently divested US business and we are going to do it again in Europe,” he adds.

Mera Cannabis also believes that as research continues to grow and as more medical professionals approve of medical cannabis, insurance companies will broaden their coverage to facilitate the use of such solutions.

Nevertheless, Prohibition Partners tells Business Malta that Europe will most likely not adopt from the North American dispensary model, as citizens and medical professionals expect a highly-standardised and regulated pharmaceutical-style product, supplied by specialist distributors.

“The European market will diversify and specialise over the next decade but Malta could well become an important hub for import and processing if it manages to establish a clear process and plan for exports to the rest of the European Union,” adds Mr Attwood.

Tight competition on horizon

Although Malta is an early adopter in terms of medical cannabis, other countries are also courting the vertical and therefore, competition might be high. “Germany, Denmark, Greece, Portugal and Italy have all discussed the domestic cultivation with a view to supplying the European market, while Luxembourg has promised to introduce a regulated adult-use market before 2023, hence they could all be competitors to Malta,” Mr Attwood tells Business Malta.

“Keep your eyes on Germany as a huge market, Portugal and Spain are beginning to get their act together […] but they will have a lot of work to catch up with countries like Malta .”

“Keep your eyes on Germany as a huge market, Portugal and Spain are beginning to get their act together, so in the not too far-off future all the major EU countries will have a stake in growing this industry; but they will have a lot of work to catch up with countries like Malta who have been ahead of the curve,” Mr Segev of MGC tells Business Malta.

To date, Malta Enterprise has approved 20 projects within the medical cannabis sector. Once operational, it is estimated that these projects will create over 700 new full-time jobs and supplement Malta’s exports by over €900m by 2022, Malta Enterprise tells Business Malta.

MPX International will take onboard staff who previously worked with Alphafarma and are certified in various quality control assurance standards required for the facility to acquire its final GMP manufacturing authorisations. The company expects to employ an additional 30 full-time staff members.

Mera Cannabis expects to hire approximately 20 employees and aim to grow their corporate team and their team at CannaWay Clinic.

MGC Pharmaceuticals forecasts hiring about 30 employees in its initial period and plans to grow and expand as its global distribution network grows.

Eyeing Africa?

Due to Malta’s geographical vicinity not only to Europe but also Africa, the highly-logical question of whether medical cannabis firms would eye supplying the mother continent with their products also arises.

MPX International intends to supply the African market as long as medical cannabis is prescribed correctly and is regulated under a reasonable programme. “Our mission at MPXI is helping patients in need have access to safe and effective cannabis medicine,” says Mr Boyes. “We will supply any country that has a responsible and legal programme in place, and doctors who are properly educated on prescribing the products. We have a JV in South Africa which is currently awaiting a licence from SAHPRA [South African Health Products Regulatory Authority] to produce medicinal cannabis, so we already have a presence on the continent.”

Furthermore, MGC looks to expand wherever medical cannabis is required. “We look at the global market and intend to have our products everywhere they are needed,” says Mr Segev. “MGC has a global research and development agenda that spans multiple continents and is always seeking interesting relationships and geographies to develop. As noted earlier, this is a global opportunity which Malta has been wise to be prescient about, but the rest of the globe is now waking up and the interest is everywhere,” Mr Segev says.

Nevertheless, Ms Ondercin-Bourne of Mera applies more caution when making a prognosis about the African market. “At this point in time, present healthcare systems are extremely limited and often rely on charities or other donors to local healthcare industries. As we continue to refine our approach to expansion, particularly with our clinic network, we will always have countries who wish to obtain better access to medical cannabis on our radar,” she says.

Alexandra Curley, Head of Insights at Prohibition Partners, earlier told Business Malta that Malta is most likely to supply Europe, and not Africa. “Despite its geographical proximity to Africa, I think it is unlikely that Africa will become an export market for Malta. Cannabis, both recreationally and medically, is still illegal in the vast majority of Africa and the three nations with legal medical frameworks (Lesotho, Zimbabwe and South Africa) have plans to develop domestic markets,” Ms Curley said.

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“We are excited to be one of the few businesses working with Canadian producers to bring Canadian medical cannabis products into Germany. Mera not only provides access to a high-quality product but a long-term strategy for growth in the medical market in Germany and across Europe,” David Höhne, Chief Executive Officer of HerbaMedica.

With a population of over 83 million and wide-spread statutory health insurance, Germany is expected to become a European powerhouse for medical cannabis. Mera’s facility in St Thomas, Ontario is designed to adhere to EU-GMP standards, as part of the company’s international development strategy. Mera expects to sell the majority of its outputs from its domestic facilities to growing international medical markets.  

“With partners like HerbaMedica, Mera has the opportunity to capitalise on its experience and insights acquired through domestic operations and utilise that knowledge in the European Union. This agreement marks a significant milestone for both parties and will help bridge the gap between supply and demand in Germany,” says Zubin Jasavala, Chief Executive Officer of Mera. 

The obligations of the parties following the supply agreement are conditional upon, among other things, each of the parties obtaining all necessary licenses and authorisations, including import/export permits and EU-GMP certification, says the press release.

Canadian medical cannabis firm Mera, formerly known as Avana, is expected to set up operations in Malta this year. The company considers the island nation in the Mediterranean to become a key player in its European expansion strategy.

“As part of our larger strategy to enter European medical cannabis markets, our upcoming Maltese facility will act as our cannabis processing and manufacturing hub. We will be importing crude oil into Malta to process into medical products such as tinctures (oils), gel capsules, sublingual strips and topicals (creams),” Emily Ondercin-Bourne, Marketing Manager at Mera Cannabis Corp, told Business Malta earlier.

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The company expects the facility to be the main access point for its products into European and additional markets. MGC Pharmaceuticals will also be carrying out research and development activities in the field of medical cannabis, bioscience, chemistry, agronomy and clinical research.

“The signing of this contract represents the culmination of our ambition to centre our operations in Malta and be a part of this island nation’s drive to become a beacon in Europe for the growth and development of this industry,” said Nativ Segev, Founder, Director and Head of Business Strategy of MGC Pharmaceuticals that has facilities all over the world, ranging from Australia to Slovenia.

“We believe that Malta’s easy access into Europe, ability to encourage and facilitate local development in a timely and efficient fashion and forward-thinking legislators and government are but a few of the reasons that make Malta an ideal operations base for the company during the years to come,” Mr Segev told Business Malta today.

“Today, Malta has a global reputation for being a high-quality hub for the pharmaceutical industry. However, investors are also becoming increasingly optimistic about the opportunities the island offers in emerging areas such as the medical cannabis industry,” said Minister for the Economy, Investment and Small Businesses Chris Cardona, when announcing the investment.

“By being the first EU member state to provide a regulatory framework, we were able to attract the right kind of business and this sector is already contributing to Malta’s economic growth,” the minister said during his address.

During his address, Mr Cardona said that since introducing legislation on the production of cannabis for medical and research purposes over a year ago, the industry has performed a significant growth in the country.

EDITORIAL NOTE: The present article has been updated with a comment by Mr Segev, sent to Business Malta on 9 August 2019.

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More than 2,000 delegates have confirmed to arrive for the networking event that might see brokering deals and discussing the important issues defining the sector, including legislation, education, investment, and technology. 

The inaugural edition of Medical Cannabiz World will welcome the medical cannabis sector that boasts of potential as the Maltese government has recently passed legislation supporting its commitment to the vertical.  

The summit will host exhibitors, brands from across the industry, production, logistics, payment processing, know your customer (KYC), legal and regulatory. 

The summit will also focus on the regulatory benefits for businesses setting up in Malta, attracting investors, medical researchers, policymakers and entrepreneurs looking to forge exciting new opportunities. 

“This is another huge milestone for both Malta and the wider business community involved in the life-changing medical cannabis industry.  With Malta’s new regulatory environment in this area, we are seeing a significant number of companies coming to the island to take part in the summit, many of which are either looking for angel funding from early-bird investors or are offering investment opportunities,” said Eman Pulis, Founder and CEO of SiGMA Group.   

In addition, Medical Cannabiz World is part of Malta Week, featuring the Malta AI and Blockchain Summit on 7-8 November.

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The establishment of a stakeholders’ partnership will proactively foresee and overcome any challenges before they become issues and it is necessary for maintaining Malta’s competitive edge in this growing and increasingly competitive industry, the minister said. In fact, the seminar hosted by Malta Enterprise was held with the goal of bringing together the current letter of intent (LOI) holders together, in order to start a longstanding partnership.

“Present efforts are concentrated on establishing an enabling infrastructure that ensures smooth operations. At the next level, we want Malta to be a research centre for medical cannabis, and to this effect, we want to see research into product development, new therapeutic strains, new product formulations, and clinical research happen in Malta. We also want to make sure that intellectual property generated in Malta can be protected in Malta,” said Mr Cardona. “The creation and consolidation of a strong peripheral industry which can service and supply both the local cluster as well as facilities beyond our shores will then be pursued,” he added.

“All of us are aware of the fast-changing scenario within the medical cannabis space. Malta Enterprise, together with our stakeholders, needs to keep a watchful eye to ensure that Malta consolidates its position as a leader in the sector”, said Mr Cardona.  

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Mr Muscat gave a keynote speech at the Cannabis Europa conference on Tuesday 25t June 2019 in order to express the medical cannabis story in Malta, explaining the economic context in which it operates. 

“Malta is a country open for business. The government has had an open-door policy to those coming with great ideas. But our strength does not come from open doors only. It comes from being straightforward with businesses. We lay down the rules, strict and transparent regulations that offer a level playfield, without surprises,” said Mr Muscat.  

“That is what we did with the medical cannabis companies that approached us to set up their business in Europe, through Malta. This sector in fact already contributes to Malta’s economic growth,” he added.  

“Just over a year ago, in April 2018, we enacted the bill of law to provide for the ‘Production of Cannabis for Medical and Research Purposes’. This made us the first EU Member State to provide a holistic regulatory framework for medical cannabis,” continued Mr Muscat. “Some would claim regulation might scare off business. To the contrary the regulations attract business. The right kind of business.”

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The move will take advantage of expanding interest in the Middle East for the emerging technology of online gaming due to “its potential to invigorate the economy and shake up governance,” the event organisers say. While Malta continues its focus on regulation, the Emirates and its neighbouring states are looking at blockchain with fresh eyes which SiGMA hopes will help its operations flourish.

The company says that its move to the Middle East coincides with “other major companies looking to get a finger in the blockchain pie, with industry players instead eyeing the United States as their base for business,” according to the press statement sent to BM.

“As part of the company’s strategic growth, the plan for 2020 will focus on strengthening core events in Malta and on the smooth running of the inaugural opening of the Emirates A.I. & Blockchain Summit. Rounding off an ambitious expansion plan, 2020 will also set the stage for the launch of SiGMA in the Philippines, with the event making its Asian debut in Manila,” says Eman Pulis, CEO if SiGMA.

Quick evolution

SiGMA — which is used interchangeably for the organising firm and the iGaming event — has gone through a rapid transformation since the first event was held in 2014. That year the firm says it moved into an untapped niche of opportunity within the local iGaming market. By 2015, SiGMA expanded operations and doubled its numbers. With attendance figures on the rise, 2017 marked entry to Europe, however, organisers say the plunge for becoming a world-class event came in 2018, “with an elite selection of delegates, policymakers and thought leaders pouring in from across the globe,” according to the press statement.

“It is this kind of international support and interest that has helped propel SiGMA into truly becoming the world’s iGaming village. Through a commitment to quality and years of successful operations, SiGMA has nurtured the development of a strong brand, allowing for its evolution into a global influencer on the iGaming world stage,” the press statement says.

Expanding operations

In 2018, the company expanded operations and launched a show dedicated to the emerging blockchain sphere; the Malta Blockchain Summit, which received positive feedback from the players in the industry. The show was also the launchpad for three pieces of Maltese government regulation; on blockchain and distributed ledger technologies (DLTs), and the initiation of a government Artificial Intelligence Task Force.

The blockchain summit in November 2018 attracted 8,500 participants and brought speakers such as W. Scott Stornetta, John McAfee, the Winklevoss Twins and Sophia the Robot to Malta’s stage. The organisers say that their summit took the scene by storm and has secured its place as the “leading event in blockchain tech”.

As of 2019, the show has expanded focus into exploring more niches and today runs rebranded as the Malta AI & Blockchain Summit. This year, two blockchain shows will be held in Malta — in addition to SiGMA’s iGaming summit and the first Cannabiz Summit World—; one in May and another one in November. The shows aim to attract a global crowd of exhibitors by boosting its offering to include artificial intelligence, quantum tech, internet of things and big data.

Cannabiz Summit World

The company will also host a medical cannabis summit; Cannabiz Summit World, where it hopes to offer a platform for leading researchers and regulators to explore the revolutionary cannabis industry to boost economic growth and revitalise the health industry.

Organisers hope that the event will lay the foundations for an evolutionary leap into medical cannabis as the worlds of science, technology, and agribusiness converge.

“The summit is a reflection not only of Malta’s efforts through Malta Enterprise and the Medicines Authority in attracting the most reputable firms to the islands but is also a reflection of the direction many states worldwide are taking in creating the right legislative framework for medical cannabis research, production and/or consumption,” the press statement says.

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Dialogue on medical cannabis has sped up in recent years, many countries having already opened up or seriously planning to open up for utilising products from the plant for healing. Additionally, beyond the decriminalisaion of recreational usage, some countries are weighing the possibilities of legalising cannabis for leisure use. Cannabis has come a long way from being mentioned on the same page with hard drugs triggering life-long addiction and demise. Malta has been progressive about medical cannabis and could become one of the early starters in the field in Europe.

“Politically speaking, the country is in an advantageous position to develop a medicinal cannabis industry, particularly owing to the fact that Prime Minister Joseph Muscat is a huge advocate both for medical and commercial purposes. He has expressed his support for Malta becoming a key regional producer — and exporter — of medical cannabis and the county’s trade routes, climate and regulatory infrastructure can support that,” Alexandra Curley, Head of Insights at Prohibition Partners, tells Business Malta.

Malta decriminalised the possession of small amounts of cannabis in 2015 and legalised medical cannabis in March 2018. In the past year, companies with expertise in medical cannabis have appeared to cast an eye on the island. A handful of them is already negotiating with Malta Enterprise, a government body responsible for assisting investors in the country, about grabbing a licence and setting up shop in here.

PM Muscat earlier said that “the current system favours criminals and it would be far better to have controls over its distribution”. His governing party expressed support for looking at legal models adopted by countries like Canada. Currently, medical cannabis cultivation for domestic consumption and for international exports is legalised in Malta.

Immense market

With a population of more than 740 million people — more than double of the United States and Canada together — Europe has a promising future in the upcoming years in terms of medical cannabis. “Over the last twelve months, the European cannabis industry has grown more than it has in the last six years,” Prohibition Partners says in its “The European Cannabis Report 2019 4th Edition”. Six countries have announced new legislation and over €500m has been invested in European cannabis businesses. “According to our findings, Europe’s cannabis market is estimated to be worth up to €123b by 2028 and will likely become the world’s largest legal market over the next five years,” the report says.

“According to our findings, Europe’s cannabis market is estimated to be worth up to €123b by 2028 and will likely become the world’s largest legal market over the next five years,”

The European Cannabis Report 2019 by Prohibition Partners says.

Prohibition Partners — founded in 2017 with a mission to open up the international cannabis industry through reliable data and intelligence — estimates the medicinal cannabis market to be worth €58b by 2028 and the recreational cannabis market to come around €65b by 2028, in Europe. This is the unfolding market that Malta is most likely to tap into.

“Malta sits in a highly-interesting and strategic position between Europe and Africa but as a European Union member state, Malta is likely to tap into the European market, which presents higher value growth opportunities for cannabis exporters,” Ms Curley tells BM. “Despite its geographical proximity to Africa, I think it is unlikely that Africa will become an export market for Malta. Cannabis, both recreationally and medically, is still illegal in the vast majority of Africa and the three nations with legal medical frameworks (Lesotho, Zimbabwe and South Africa) have plans to develop domestic markets,” she adds.

‘Progressive’ nation

As a member of the European Union, Malta is more likely to be producing cannabis to EU-GMP standards which could possibly give the country an advantage over products manufactured outside the bloc. The country appears to sport a promising future in this field, being one of the most forward-thinking nations in the European Union.

“Malta is definitely seen as progressive in relation to other EU countries. Obviously, all eyes are on the region’s leaders like the Netherlands, Germany and Italy, but Malta has passed legislation to decriminalise recreational cannabis and also promote a profitable and accessible medical cannabis industry,” Ms Curley says.

The legislative environment seems to have created a safety net for providing services to high standards. “The law is definitely less ambiguous than other countries who have begun the process of legalisation of cannabis — South Africa being a case in point, where key definitions are unclear around what constitutes personal use or private space. The Maltese regulations have been designed to ensure that standards are maintained, thus preserving the country’s ability to benefit financially from the industry, particularly with regard to employment, taxes and revenues. While the intent is there, Malta will need to sort out regulations for international export before they can be seen as regional heavyweights,” Ms Curley underscores.

“The Maltese regulations have been designed to ensure that standards are maintained, […however,] Malta will need to sort out regulations for international export before they can be seen as regional heavyweights,”

Alexandra Curley, Head of Insights at Prohibition Partners.

The paradigm shift has been quite fast in the past years; the legalisation of cannabis for medical use and decriminalisation of possession in small amounts for recreational use is a long way travelled. However, how likely could Malta open up for legalised and controlled recreational cannabis use, similarly to Canada and some states in the US?

“It is not unfeasible that this would be the case. When you examine other legal markets around the world, recreational cannabis can follow the legalisation of medicinal cannabis or the decriminalisation of cannabis for personal use. It might not be in the next one or two years, but, it could happen in the mid-term. We would expect to see something of a snowball effect as other European countries start to legalise or decriminalise cannabis for recreational purposes,” Ms Curley says.

“Cannabis has already been decriminalised in Malta (2015) which means that possession is not a criminal offence, but there is still a long way to go to creating a regulated legal market. That said, Malta has been going through something of a renaissance of late, with the legalisation of same-sex marriage (2017) and updates to laws on IVF (2018). It is not out of the question that liberal political attitudes will also influence cannabis legislation too,” she concludes.

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