Business
Bedrocan owes profit to its focus on medical cannabis: Q&A with founder Tjalling Erkelens
Are medical and adult-use cannabis effectively the same thing, and can businesses thrive in both markets?
Some executives and regulators will tell you there is no real difference, but Bedrocan founder Tjalling Erkelens isn’t one of them.
The Veendam, Netherlands-headquartered cannabis producer does not waver from its focus on and belief in medical cannabis and operates under a clear distinction from adult use – despite the hype that often comes with new recreational markets.
Erkelens says the focus on medical is part of the core reason for Bedrocan being a profitable cannabis producer.
“People were asking me, ‘Why don’t you do rec?’ I said, that will take my focus off what I’m really trying to do. I think adult use in the end will be a bear market – the lowest price will prevail,” he said in an interview with MJBizDaily.
Erkelens spoke with MJBizDaily about what it takes to run a profitable medical cannabis company in Europe, the opportunity in Germany and expanding into new markets such as Denmark.
When Canadians were spending billions to expand their cannabis businesses globally, in countries with no meaningful sales, you didn’t follow them. What did you know that they didn’t?
I want to spend money responsibly.
That’s more or less the old-fashioned moral here in the Netherlands and in Europe in general – if you have investors on board, use and spend their money wisely and make your company profitable.
What I have always been doing is producing on demand. That is a core rule in the company. Figure out the demand, then live up to that level and, if needed, expand.
Overproduction is a major problem in the industry, not just in Canada. Why is producing on demand so important to you?
Produce what you can sell, and don’t produce what you cannot sell.
Your biological assets will go up not in smoke or vape, but they will end up in the trash can in the end, because in the pharmaceutical world, there are expiration dates.
I never had an idea of expanding without demand, thinking the world’s demand would grow (to reach my production).
When people started talking about thousands of kilos and metric tons (for export), I was thinking, “Where are those tons going?”
If you want to sell cannabis in Europe as a medical product, as a pharmaceutical product, you better know what you’re doing.
I have seen North Americans approach this basically from an adult-use attitude and not from a true medical attitude – especially on the cultivation side.
Your cultivated product should have a level of standardization – genetically and chemically – that allows it to be processed as a true pharmaceutical product.
What else is core for Bedrocan?
Your product is also core. You need to know what you’re producing.
If you’re the CEO of a (cannabis) company, you need to know your cultivation department inside out.
You need to know the genetics of your product inside out.
We started with small-scale production. That is where I learned.
Why are you expanding into Denmark now and not five years ago, like most of your competitors?
There was no definitive regulation in Denmark that allowed for commercial export. That only happened two years ago.
There was a pilot program for Danish patients.
A lot of Canadian companies went to Denmark in the hope that the pilot program would be finalized and become part of the law, which eventually happened in the end. (Most Canadian cannabis companies have exited Denmark.)
But those are the things (regulatory and legal evolution) I cannot bet on.
I cannot bet on a regulation or law that is still in the pilot phase and then spend millions on something that might end in a few years again.
So we waited until May 2021, when the Danish parliament approved the definitive law for production, cultivation, processing and exporting.
Now it is law, so we can go there.
Why now? Because of demand. We have demand for product. It’s not a wild idea for us to set up a production facility in Denmark.
The production capacity has been sold for everything we are building now, so I know what I’m getting when I open that facility.
I know the people working there will not be fired two years after it opens.
What I also know is my numbers on production, revenue and profit. I know those numbers already. That’s the way we operate.
What’s your goal for Bedrocan?
Bedrocan will diligently but carefully expand its activities – and footprint if needed – to wherever legitimate demand for its products becomes apparent.
Bedrocan is not focusing on business leadership nor domination but, rather, on fulfilling the needs of patients and their professional caregivers in the most ethical and sustainable way possible.
Medical demand is rising on multiple fronts, on the patient and scientific side, because of the quality and standardized level of our products.
What about recreational cannabis?
I see too many risks in the adult-use market business-wise.
It’s very unwise to mix two totally different markets – to mix them in one company.
One of the mistakes in the boardrooms is when they think cannabis is just cannabis, but that’s not the case.
Cannabis for medical purposes is a very different product compared to cannabis for recreational use.
Medical cannabis is strictly about standardized products, proven quality and efficacy.
One of the things we’re doing is clinical research.
We opened up our clinical research unit just this year because we now have the money to do it.
We’re basically bankrolling everything ourselves.
This is the road we have chosen, to grow incrementally on demand.
Scientific and clinical research for us is a very important leg to stand on.
Some North American businesses bet heavily – and lost – on Germany’s original plan for full legalization. What did you expect and why?
In the German situation, there was unbelievable optimism, but I had never been optimistic about that situation from the beginning.
The political optimism that was there two years ago – we immediately said they’re not going to make it and it isn’t going to work.
Germany as a country will not trespass on (United Nations) and European rules. That’s impossible, because Germany is the driving power in Europe.
In Europe, we are also dealing with a number of countries that don’t want to legalize at all.
I’m still surprised Germany found a compromise (for regional trial programs), but they still have to check back in with the European Union again before they launch the plan for social clubs and homegrows.
What they did in the meantime is separate medical from rec, and I am very happy about that.
Source: https://mjbizdaily.com/bedrocan-focus-on-medical-cannabis-builds-profits-tjalling-erkelens/
Business
Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light
Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).
The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.
India’s Indigenous LEO Satellite Vision
Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.
The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.
According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.
The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.
Regulatory Process Moves Forward
Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.
The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.
Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.
Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.
Broadband, Mobile Connectivity, and Strategic Applications
Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.
The company also intends to establish 20 to 22 ground stations across India to support network operations.
Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.
Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.
Major Step for India’s Space and Telecom Sectors
Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.
The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.
Business
Alleged Crores Pharma Scam Mastermind Arrested from Surat
After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.
Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.
Fake Business Deals and Dishonoured Cheques Used in Fraud
Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.
In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”
Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.
Multiple Identities and Repeated Fraud Pattern
Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.
Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.
Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.
Multi-State Surveillance Leads to Arrest in Surat
A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.
Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.
Growing Threat of Corporate Identity Fraud
The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.
Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.
Experts Urge Stronger Due Diligence in High-Value Transactions
Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.
Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.
Business
EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices
A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.
Investigation Under Digital Markets Act Gains Momentum
The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.
Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.
Industry Groups Demand Swift Action
Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.
Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.
In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.
Google Denies Allegations
Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.
However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.
Potential Billion-Euro Penalties
If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.
Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.
Wider Implications for Big Tech
The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.
A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.
As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.
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