COWEN COLLABORATIVE INSIGHTS February 25, 2019 kg per year, which has led to a shortage of supply. In 2018, an import license was granted to Canadian licensed producer (LP), Aurora, for 100 kg of medical cannabis per year to help meet the demand. Italy has a rich history of hemp cultivation and it used to be one of the main producers in the world prior to prohibition of the plant. The market opened up in 2016 when the government announced that a license to cultivate hemp for industrial, food, cosmetic and energy purposes was no longer required. Whereas the rest of the EU requires THC content to be below 0.2%, Italy permits a margin of up to 0.6%. Based on the license exemption, many companies started producing and selling high CBD, low THC referred to as “cannabis light.” Cannabis light products must state that the product is not for human consumption; however, once a person purchases the product the use is essentially up to their own discretion. These products are legally sold and branded as “collectors’ items.” Since it is a “collectors’ item,” imported “cannabis light” products are not taxed. However, it is necessary to have proper test and analytics when crossing the border to guarantee the product passes customs. One of the first “cannabis light” companies, EasyJoint Project, launched in 2017 and is sold in hemp specialist shops. There are now around 1,000 e-commerce sites and other retail stores that sell CBD oil, capsules, CBD for pets, dried flower, vapes and cosmetics. Legally, the Health Ministry must approve products, yet this is not frequently enforced. Foreign companies have invested in land over the last couple of years, including public Canadian companies Wayland, LGC Capital, Canopy and CROP. In 2018, Wayland entered a JV with CBD Italian Factory S.S. with plans to supply the local market with CBD for medical, therapeutic and veterinary purposes. LGC Capital entered an agreement with EasyJoint to acquire 47% of the company to gain access to the loca