Another marijuana stock profile has been added today as Associated British Foods plc (OTC:ASBFY) (LON:ABF) officially become a cannabis cannabis stock. Associated British Foods' subsidiary, British Sugar, just signed a deal as a cannabis supplier for cannabanoid-based pharmaceuticals company, GW Pharmaceuticals plc (NASDAQ:GWPH). This will help to de-link the performance of Associated British Foods' British Sugar division from sugar price volatility.
From Tomatoes to Cannabis:
As The Telegraph's Business News Editor Julia Bradshaw reports, cannabis "will be grown in British Sugar’s 18-hectare glasshouse in Wissington, Norfolk, where the company, a subsidiary of Associated British Foods, is currently cultivating tomatoes. The space is the equivalent of 23 football pitches."
18 hectares is equivalent to just under 45 acres. This should be a higher margin crop for British Sugar to grow in the greenhouses. That is enough space to cultivate a lot of cannabis. According to Julia Bradshaw's Telegraph report, "the glasshouse will provide enough raw crop a year to treat 40,000 children globally" through GW Pharmaceutical's in-development epilepsy treatment.
Fighting Epilepsy and More:
The cannabis supplied to GW Pharmaceuticals will likely be used for manufacturing both its Sativex multiple sclerosis spasticity treatment (which is also under development for cancer pain treatment) and an epilepsy treatment called Epidiolex that is further down GW Pharmaceuticals' pipeline.
As more information comes out regarding Associated British Foods' step into cannabis, we will be sure to update readers. Be sure to subscribe to The Daily Marijuana Observer's newsletter so you never miss an update.
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