Germany has decriminalized cannabis. And it is reviving optimism for many publicly listed cannabis companies.
What’s happening:
- German lawmakers have officially passed new regulations which fully decriminalize cannabis in Germany
Why it matters:
- Cannabis being recreationally legalized in more European countries has been one of the largest looming catalysts for cannabis cultivators and brand operators
- Germany decriminalizing cannabis is widely seen as the first step towards a complete legalization of cannabis in the country, a precedent which has been seen in many other countries globally including Canada
Market reaction:
- Shares of Canopy Growth (NASDAQ: CGC) are up +82% since the announcement
- Shares of Aurora Cannabis (NASDAQ: ACB) are up +23% since the announcement
Yes, but:
- Many publicly listed cannabis companies have struggled to find funding or outright collapsed amidst the continued regulatory uncertainty around the future of cannabis becoming federally legal in the United States
- It still remains unclear when new federal policy will happen for cannabis in the United States, despite repeated attempts to have cannabis formally rescheduled by policymakers
The fine print:
- The new laws laid out by German politicians allow individuals to possess cannabis legally and cultivate cannabis within their own residences, however it does not yet allow for cannabis to be sold in licensed dispensaries to individuals
