Germany’s recent move to legalize limited cannabis possession and consumption for adults has sparked excitement and optimism within the cannabis industry, especially in the United States. While commercial sales are still prohibited under the new legislation, industry executives are hopeful that this development will pave the way for broader legalization across Europe, potentially boosting their businesses.
The news of Germany’s decision had a direct impact on the stock market, with shares of Curaleaf Holdings, the largest US cannabis company by market cap, rising by 3.1% on Friday. CEO Boris Jordan praised the move, highlighting its potential to influence other European markets. Curaleaf already has a presence in Germany through its acquisition of Four 20 Pharma and EMMAC, which have operations in various European countries.
In a statement on social media, Jordan expressed his enthusiasm for the opportunity presented by Germany’s cannabis legalization, noting the significant growth potential in both medical and adult-use markets. Other US cannabis stocks also experienced gains following the news, including Trulieve Cannabis Corp, Green Thumb Industries, and Cresco Labs.
Beyond the immediate market reactions, industry leaders see long-term opportunities under Germany’s partial cannabis legalization, known as the CanG bill. The legislation removes marijuana from the Narcotics Act, where it was previously listed as a banned substance. Niklas Kouparanis, co-founder and chief executive of German cannabis company Bloomwell Group, described the vote as a monumental moment for the industry, marking the biggest development since the legalization of medical cannabis in 2017.
Kouparanis emphasized the positive impact of the legislation on both recreational and medical cannabis users, noting that it will destigmatize cannabis use and make it more accessible to those in need. Under the new law approved by the Bundestag, adults in Germany will be allowed to grow and possess limited quantities of cannabis for personal use starting April 1, with non-commercial cultivation clubs becoming legal on July 1.
Overall, Germany’s move to legalize limited cannabis possession and consumption for adults has generated excitement and optimism within the cannabis industry, with industry leaders anticipating long-term growth opportunities in the European market. The development is seen as a positive step towards broader legalization across Europe, potentially benefiting US companies with a presence in the region.
