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Boris Jordan, executive chairman of Curaleaf Holdings, and other cannabis executives praised Germany’s removal of cannabis from its list of drugs on Friday, saying it could boost marijuana businesses as stocks in the sector soar. did.
As a compromise, the law stopped short of imposing sanctions on commercial cannabis sales.
From April 1, adults will be allowed to grow and possess limited amounts of cannabis for personal consumption under a law approved by Germany’s Bundestag.
Non-profit cultivation clubs will be legal from July 1st.
Curaleaf
karf
It ranks as the largest cannabis company in the U.S. by market capitalization, and is also establishing a presence in Germany by acquiring a majority stake in Four 20 Pharma for approximately $20 million in 2022.
“Today’s progress is an important first step toward widespread legalization in Europe’s largest economy, and the implications this will have for other European markets,” Curaleaf’s Jordan said in an emailed statement to MarketWatch. “The potential domino effect should not be underestimated.”
Curaleaf stock rose 3.1% on Friday, while AdvisorShares Pure US Cannabis ETF MSOS rose 3.3%. Other cannabis stocks from U.S. companies with little or no direct exposure to Germany also rose.Trulieve Cannabis Corporation
TCNNF
Up 6.4%, Green Thumb Industries Inc.
GTBIF
Cresco Labs Inc., up 1.5%.
CRLBF
It rose 3.9%.
Tilray Brands, Inc.
TLRY
Aurora Cannabis Inc. fell 2.5%.
A.C.B.
It increased by 1.5%. Both Canadian-based companies supply the German market.
Other cannabis executives with a presence or interest in the German market also offered positive comments.
Niklas Koupalanis, co-founder and CEO of German cannabis company Bloomwell Group, said the vote was the biggest moment for the industry since medical cannabis was legalized in March 2017.
“The most important aspects of this law have to do with the medical market and the reclassification of medical cannabis as a non-narcotic drug,” Koupalanis said.
He said demand for medical cannabis is growing “rapidly and significantly” and expects the number of patients to increase by up to 10 times next year.
“Physicians will be able to prescribe cannabis the same way they would prescribe Rxs, and the price will be more affordable for patients,” Koupalanis said.
Adam Wilkes, CEO of cannabis licensing company Karma Holdco, which handles brands from celebrities such as Mike Tyson and Ric Flair, said the company is currently in Germany to “bring our products to the rapidly growing market.” “We believe there is an opening for expansion,” he said.
Also read: Canadian cannabis giant Canopy Growth seeks shareholder approval to accelerate entry into US market
Michael Sasano, CEO of Somai Pharmaceuticals, a European company that sells medicines containing cannabinoids, said the move was an important step for regulators in the European Union and around the world to “offer a safer alternative to big drug companies.” It is seen as a “first major step” to support the government. Currently available. ”
Jason Adelstone, a senior associate at cannabis law firm Vincente LLP, said the German government had “turned the page” on cannabis prohibition.
“Germany’s recognition, along with Malta and Luxembourg, that restrictions are better than bans to protect the health and safety of its citizens may prompt other European Union countries to do the same.” ” said Adelstone.
Also read: New York cannabis farmers may have to throw away 250,000 pounds of product due to retail bottlenecks
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