Benzinga - by Maureen Meehan, Benzinga Editor.
News of Germany’s move to legalize limited cannabis possession and consumption for adults sent ripples through the cannabis industry, particularly in the U.S. While the legislation prohibits commercial sales for now, executives see it as a positive step towards broader European legalization, potentially boosting their businesses.
Shares of Curaleaf Holdings (OTCQX: CURLF), the largest US cannabis company by market cap, rose 3.1% on Friday. CEO Boris Jordan praised the development, highlighting its potential domino effect on other European markets. Curaleaf already has a presence in Germany through its 2022 acquisition of Four 20 Pharma, and its prior purchase of EMMAC, which boasts vertically integrated operations in Europe — UK, Germany, Italy, Spain and Portugal
"Big step today in Germany with the removal of cannabis from the narcotics list – the 2nd G7 country to do so. Incredible that the US is still behind Canada and Germany!” Jordan wrote on X, formerly Twitter. “The opportunity in Germany is significant; Curaleaf is prepared w/ a first-mover advantage & the infrastructure to support both the anticipated huge growth in medical demand and potential for future adult use!”
Big step today in Germany with the removal of cannabis from the narcotics list- the 2nd G7 country to do so. Incredible that the US is still behind Canada and Germany! The opportunity in #Germany is significant; #Curaleaf is prepared w/ a first-mover advantage & the…— Boris Jordan (@Boris_Jordan) February 23, 2024
Other US cannabis stocks also experienced gains: Trulieve Cannabis Corp. (OTCQX: TCNNF) (6.4%), Green Thumb Industries (OTCQX: GTBIF) (1.5%) and Cresco Labs (OTCQX: CRLBF) (3.9%). Notably, Tilray (NASDAQ: TLRY) and Aurora Cannabis (NASDAQ: ACB), Canadian companies already supplying Germany, showed mixed results (Tilray down 2.5%, Aurora up 1.5%).
Beyond immediate market reactions, industry leaders see long-term opportunities under Germany's partial cannabis legalization, known as the CanG bill, which removes marijuana from the Narcotics Act where it was listed as a banned substance.
Niklas Kouparanis, co-founder and chief executive of German cannabis company Bloomwell Group, described the vote as monumental, noting that it marks the biggest moment for the industry since the legalization of medical cannabis in March 2017.
“The passage and implementation of the CanG bill is monumental for the German people, especially with regard to decriminalizing and, ultimately, destigmatizing cannabis use,” Kouparanis told Benzinga.
“It’s also extremely impactful and beneficial for medical cannabis patients, as reclassification paves the way for more people in need to access medical cannabis as they would any Rx prescription and at more affordable price points,” he added.
Under the law approved by the Bundestag, Germany’s parliament, starting April 1 adults will be allowed to grow and possess limited quantities of cannabis for personal consumption.
Non-commercial cultivation clubs will be legal starting on July 1.
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Photo: Benzinga edit of images by Matthew Brodeur and Christian Wiediger on Unsplash
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