Investor relations

Cannabis Suisse Corp. : CSUI (OTC Markets)

Market background & Business objectives

Switzerland has the highest allowed legislative THC content in Europe (1%) for sales of cannabis products in retail outlets (without medical receipt). This makes Switzerland an ideal geographic location to manufacture cannabis products, with an intent to scale the business into worldwide distribution.

Various diluted sequences of THC/CBD ratio can be produced to match legislation and regulation on individual markets with other permitted levels of THC. This allows for worldwide production of OTC (over-the-counter) products - for example CBD oils, as well as retail branded cannabis cigarettes, and other health related supplements.

Manufacturing production of CBD oils.

The unique strains of cannabis that we have selected and cultivated contains less than 1% THC. A remarkable characteristic of the strains of cannabis is that the THC:CBD ratio is 1:20, meaning the strain induces little intoxicating effects. Our tests have put the CBD content as high as 19%.

This can be exported worldwide and be tailored to each market’s local legislation in regard to THC content - even as low as 0%. Diluting the THC content does not reduce the CBD content of the product.

We produce CBD hemp oil drops made with the whole hemp plant containing both CBD and CBDa. We produce CBD RAW hemp oil drops that aren’t made with any heat or filtering during production so the CBDa is left intact. And it’s the CBDa that’s thought to have effects on other non-endocannabinoid receptors and enzymes. As a result, Raw CBD hemp oil maintains the full spectrum of cannabinoids, terpenes and flavonoids from the original plant.

Developing of a retail brand for sale of traditional cigarette packages

Sales of OTC cannabis cigarettes (over-the-counter retail packages) in Switzerland. Allowing for 1% THC level content in cigarettes, as opposed to 0,2% in most EU countries, utilizes developing of typical cigarette packages containing “marijuana joints”, sold in the same way that retail consumers are accustomed to buying a pack of Marlboro or Davidoff, in a retail outlet like a supermarket chain or a street kiosk.

Due to Switzerland’s high level of authority control and supervision, these cigarette packages can be exported to other markets where medical cannabis is already legalized through pharmacies and other supervised outlets, since the products will have a documented certified content of THC level, and thereby will be very easy to siphon through the local legislations for medical cannabis.

E-cigarette products

As our license axiomatically authorizes us to manufacture nicotine containing products along with THC products, a key market objective is to develop liquids and oils for electronic vapors and traditional e-cigarettes, containing CBD oil with low level THC. The final product can be exported worldwide and customized in different ratios of THC:CBD ratios, in the same way as described in the CBD oil section above.

Customized manufacturing of private label, and niche branded products

Developing an in-house brand of “marijuana joints”, allows us to license our technology or produce private labels for established brands, with individual flavors and customization. We will also develop niche products.

We have initiated a cooperation with one of the world’s most coveted cigar brands, Royal Danish Cigars, in developing the world's first THC/CBD cigar.

The cigar is based on a blend of cultivated cannabis and a medium filler from Costa Rica, Panama, and Nicaragua tucked under dark Nicaragua Jalapa wrapper. A special luxury version is planned as a handmade cannabis cigar, adorned with 24 karat gold and Swarovski crystals, making each cigar a unique work of art.

CBD oil supply to the cosmetics and health industry

CBD oil is increasingly becoming popular in the cosmetics and beauty industry, as an ingredient in skin products and hair products. We plan to supply customized CBD oil to manufacturers of related cosmetics and health products.

Cultivation and sale of seedlings for sale to smaller cannabis farmers

Breeding of mother plants opens up for a market in selling cloned seedlings from our cannabis plants, with controlled THC:CBD ratio, to other farmers in Switzerland. We aim to set a benchmark for taste and genetic sequence, that will provide a consistent customer experience, that our clients will rely on.

Extraction of CBD for other farmers

Many farmers do not possess technology to extract the CBD oil from their cannabis harvest, and only have an option to sell their harvest as a recreational tobacco substitute for smoking. CBD oil has a broader market potential than tobacco products. We will function as an extraction hub, collecting harvest from smaller farmers and extracting CBD oil in a collective system. This will operate in accordance with the same principles as a bigger dairy company processes milk for smaller farmers. The CBD oil can be sold via our channels, or it can be returned to the farmer to be used in his own brands and boutique distribution channels.

Consulting and export of know-how

We plan to consult independent farmers in efficient cultivation methods and related know-how, while providing services and assistance dealing with legal compliance, optimized cultivation methods, acute production complications, progress monitoring and cultivation quality. Particularly using our patented technologies CannaMec™ and MoldStandard™.

Initially our consulting services will be targeted to Swiss farmers, but eventually, as more countries liberalize cannabis legislation, we will target export markets as well.

Market background

In 2017, Swiss legislation regarding production, sale, and use of cannabis was changed, and thereby increased and legalized the level of THC to 1% for commercial cannabis production and sale. The new legislation gives companies the right (with proper authorization and licenses) to cultivate cannabis plants and distribute cannabis within the country.

In February 2017, the Swiss health authorities established the legality of cannabis by indicating that "low-THC cannabis" would be taxed the same way tobacco is taxed, with a similar health warning. This type of cannabis is distributed under different names by different providers. Sales of OTC cannabis cigarettes picked up pace in Bern and Zürich in the beginning of 2017 as more people started to use the product. Sales have increased radically, and the 2019 turnover from cannabis is worth up to CHF500 million ($516 million) in Switzerland alone.

Despite the increase in retailers, supply is lower than demand. Current providers can produce only approximately 1/4 the total Swiss market's demand.

Swiss supermarket Coop Cooperative was the world’s first major chain to sell cannabis cigarettes that contain less than 1% THC in 2017, in its 700 stores across the country. In 2018 Lidl and other retailers joined in. A very significant event is that the 25% tobacco tax was removed in the end of 2019.

Back in August 2018, Forbes magazine listed Switzerland as the third most overlooked marijuana market in the world.

In the next five years, Europe is set to become the world’s largest legal cannabis market. The market is ready, and the industry has grown more in 2019 than the last six combined.

To date six countries have announced new legislation regarding the growth, sale, or consumption of cannabis. France, the UK, and Spain are reviewing current legislation, while Germany, Italy, and the Netherlands are focusing on expanding existing medical programmes.

Medical cannabis flower imported into Germany doubles again in 2019, confirming strong growth. A key government committee in France has set the stage for a two-year medical cannabis trial program that’s expected to kick off in 2020, providing an opportunity for overseas companies to export product to the new market during its early stages.

Ireland is embarking on a five-year medical cannabis pilot program, opening up commercial opportunities for companies to supply the Irish market once their products have met approval requirements set out in legislation.

Germany, Denmark, Malta, Greece, and Italy have all discussed the possibility of a fully regulated cannabis market to 2028, while Luxembourg has promised to introduce a regulated adult use market before 2023.

To expand outside of Switzerland, we are developing customized products because the European Union has different restrictions on THC content.

Media about Cannabis in Switzerland 2018-2020