NEW YORK – Cannabis stocks soared Friday on the news Germany’s parliament legalized cannabis for personal possession and use.
Canopy Growth Corporation’s stock (NASDAQ: CGC) surged a remarkable 39 percent, capping a weekly gain of more than 106 percent. Others on the NASDAQ, including Aurora Cannabis Inc. (ACB, up 26.6 percent), SNDL Inc. (SNDL, up 21.5 percent), Tilray Brands Inc. (TLRY, up 18.5 percent), and Cronos Group Inc. (CRON, up 9.2 percent), also witnessed substantial increases in share prices.
Under the new law, which will take effect April 1, adults ages 18 and older may possess up to 25 grams of cannabis for personal use and store up to 50 grams at home. The law also permits cultivation of up to three cannabis plants for personal use and limited public consumption. Beginning July 1, specialized “cannabis clubs” will be allowed to grow and dispense cannabis on a limited basis.
The legislative shift opens significant opportunities for businesses that operate in Germany, as Canopy does through its German vaporizer brand Storz & Bickel and its Canopy Medical pharmaceutical products brand.
“This legislation represents a very important and long-overdue step to end the criminalization of cannabis in Germany and sets an important example for the whole of Europe,” said Jürgen Bickel, managing director at Storz & Bickel. “With more than 20 years working in the cannabis industry, constantly advocating for legalization in Germany, I’m proud that consumers will now have a safe and legal environment for cannabis consumption.”
Germany’s declassification of cannabis as a narcotic is part of a wider global reform movement, recently spotlighted by U.S. Vice President Kamala Harris’s critique of America’s marijuana policies. Harris and President Joe Biden have called for the Drug Enforcement Administration to reconsider cannabis’s classification to reflect a more nuanced understanding of the plant’s uses and impacts. The agency is in the middle of a review process many in the industry believe will result in a loosening of restrictions in the United States.
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