Business
Centurion Provides Update on South American Cannabis Market Potential
Vancouver, British Columbia--(Newsfile Corp. - January 7, 2020) - Centurion Minerals Ltd. ( TS...
About this update from Centurion Minerals Ltd.
[{"type":"text","content":"Centurion Provides Update on South American Cannabis Market PotentialVancouver, British Columbia--(Newsfile Corp. - January 7, 2020) - Centurion Minerals Ltd. (TSXV: CTN) (\"Centurion\", or the \"Company\") reports that over the last several quarters, management has undertaken a substantive review and evaluation of legal cannabis cultivation, extraction and distribution opportunities in South America, specifically focused on low-cost, stable jurisdictions including Uruguay, Argentina, Paraguay and Peru. A significant portion of this time has been spent assessing consumer preferences and local sensitivities toward cannabis in an effort to develop a sales-focused and consumer-curated cannabis production strategy.SOUTH AMERICAHaving a larger population than North America, South American countries are moving quickly with varied cannabis legalization presently rolling-out on a country-by-country basis. Brazil alone has a population exceeding 200 million and Centurion envisions a significant business opportunity there following recent cannabis legalization that prohibits any domestic production but allows importation of certain cannabis products.David Tafel, Centurion's President & CEO, comments: \"We strongly believe there is a near-term opportunity in South America for the Company and investors due to: A massive population exceeding more than 400 million people;Broad-based consumer acceptance of cannabis and cannabis derivative products; Per capita annual spending on cannabis exceeding US$200 in mature markets (Source: Grizzle.com, January 2019);Limited domestic supply; and An almost complete lack of capital-markets focus on this region.2019 IN REVIEWCenturion management has carefully observed the maturing of the Canadian and American cannabis space over the past 12 months, which includes excess inventory that was inadequately curated for consumer demand as well as cost structures that were misaligned with operational consumer products companies. Both issues have been pervasive across the sector and have been focal points for investor portfolio adjustment. The Company's objectives are to develop a sales-oriented, South American focused company that can: (a) produce derivative cannabis products as inputs for consumer products companies; and (b) produce an API isolate for the pharmaceutical industry. On this last point, the Compan...