A joint venture signed on Tuesday with the Danish company Stenocare will help the Canadian cannabis producer CannTrust Holdings (TSX:TRST) expand, said Russell Stanley, an analyst with Echelon Wealth Partners.
CannTrust will receive a 25 percent equity stake in Stenocare, one of the first Danish companies to receive its license to grow and produce medical cannabis for both national and international use.
Initially, Stenocare will sell CannTrust’s products markets in Denmark but it will also work towards developing a domestic growing facility.
While medical marijuana is not officially approved in Denmark, however, the Scandinavian country kickstarted a four-year pilot program on Jan. 1 by allowing doctors prescribe medical marijuana.
“This marks the [CannTrust] company’s second international growth initiative [after Australia], and we believe expansion into other international markets – on multiple continents – is a priority for the Company,” said the analyst.