News of Germany’s decision to legalize the possession and limited consumption of cannabis for adults has had repercussions in the cannabis industry, particularly in the United States. While the legislation bans commercial sales for now, executives see it as a positive step towards broader European legalization, potentially boosting their businesses.
Shares of Curaleaf Companies CURLYthe largest U.S. cannabis company by market capitalization, gained 3.1% on Friday. CEO Boris Giordano praised the development, highlighting its potential domino effect on other European markets. Curaleaf is already present in Germany through the acquisition of Four 20 drugs, and his previous 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 list of narcotics – on the 2ndnd G7 country to do so. Incredible that the United States is still behind Canada and Germany!” Jordan wrote on X, formerly Twitter. “The opportunity in Germany is significant; Curaleaf is ready with first-mover advantage and the infrastructure to support both the tremendous expected growth in medical demand and the potential for future adult use!”
Other US cannabis stocks also posted gains: Trulieve Cannabis Corp. TCNNF (6.4%), Green thumb industries GTBIF (1.5%) e Cresco Labs CRLBF (3.9%). In particular, Tilray TLRY AND Alba Cannabis (NASDAQ:ACB), the Canadian companies that already supply Germany, showed mixed results (Tilray down 2.5%, Aurora up 1.5%).
Beyond immediate market reactions, industry leaders see long-term opportunities in the partial legalization of cannabis in Germany, known as the CanG law, which removes marijuana from the narcotics law where it was listed as a banned substance.
Niklas Kouparanisco-founder and CEO of the German cannabis company Bloomwell Groupdescribed the vote as monumental, noting that it marks the most important moment for the industry since the legalization of medical cannabis in March 2017.
“The approval and implementation of the CanG law is monumental for the German people, especially regarding the decriminalization and ultimately destigmatization of cannabis use,” Kouparanis he told Benzinga.
“It is also extremely effective and beneficial for medical cannabis patients, as the reclassification opens the way for more people in need to access medical cannabis as they would with any Rx prescription, and at more affordable prices,” he added.
According to the law approved by the Bundestag, the German parliament, starting from April 1st adults will be able to cultivate and possess limited quantities of cannabis for personal consumption.
Non-commercial grow clubs will be legal starting July 1.
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Photo: Benzinga editing images by Matthew Brodeur and Christian Wiediger on Unsplash