These Companies Are Ready To Capitalize On Marijuana Policy Reform In Germany, Here's Who Could Stand On The Way

German lawmakers are expecting a recently revised version of the marijuana legalization measure to bring about the long-awaited policy change in the coming spring.

As members of the national parliament are set to vote next week on a measure that would legalize the use and cultivation of recreational marijuana, while setting up social clubs that could distribute cannabis to members, the question of creating a commercial sales pilot program was still left hanging, Marijuana Moment’s Kyle Jaeger writes.

However, Health Minister Karl Lauterbach is an optimist.

“The schedule set for next year appears to be achievable at this point,” Lauterbach said at a Wednesday meeting before the Bundestag. The legislation was first introduced in April and recently amended to relax penalties for possessing slightly over the allowable amount of cannabis and increase home cultivation limits from 25 to 50 grams, with similar administrative violation terms for 50 to 60 grams.

Not Everyone In Agreement

While the Bundestag seems to be favorable toward the cannabis policy change, the Bundesrat - an independent legislature comprising the German states - is not so fond of it.

According to the Bavarian state government, the jurisdiction intends to launch a legal challenge to impede the reform.

“We will definitely examine legally…whether we can still legally defend ourselves against it,” said Judith Gerlach, Bavarian Health Minister.

She indicated that should legalization be implemented, Bavarian officials would interpret its provisions “as restrictively as possible.”

These Companies Are Ready To Capitalize On Cannabis Policy Change In Germany

Either way, cannabis companies in the U.S. and Canada are capitalizing on the expanding European market, with Germany being at the forefront of the change and by far the largest market.

According to a recent report by cannabis analyst Pablo Zuanic, cannabis giants Tilray Brands Inc. TLRY TLRY and Aurora Cannabis Inc. ACB ACB are among the best-positioned companies to benefit from Germany legalizing retail distribution, possession and home growth of recreational marijuana.

Another big player in the space is Curaleaf Holdings, Inc. CURA CURLF, which last year acquired a 55% stake in Four 20 Pharma GmbH, a fully EU-GMP & GDP licensed German producer and distributor of medical marijuana. The move solidified a strategic pathway to acquire complete control of Four 20 Pharma two years after the commencement of legal adult-use cannabis in Germany.

Another company eyeing the new market is CBD of Denver Inc. CBDD with its acquisition of a German-based CBD specialist as well as its wholly-owned subsidiary, Luxora. CBDD is taking a significant step into the European cannabis market by signing four Letters of Intent (LOIs) for the establishment and operation of four Cannabis Clubs in Germany in September. Last week, the company broadened the reach of its flagship product, the Magic Lappen, by entering into a teleshopping partnership with Channel 21, Germany's third-largest teleshopping channel.

Organigram Holdings Inc. OGI entered into a supply agreement for dry cannabis flower with the medical division of German cannabis company Sanity Group GmbH in May. Under the terms of that agreement, the company will provide indoor-grown dried flower products to Sanity Group and grant Sanity Group strain exclusivity on certain genetics. Before that, in September 2022, British American Tobacco BTI announced its investment in Sanity Group GmbH along with Snoop Dogg’s Casa Verde Capital as part of the tobacco giant’s bid to diversify beyond nicotine. Sanity secured $37.6 million in a BAT-led Series B funding round.

On the local level, Cantourage, a Berlin startup became the first medical cannabis company to list on the Frankfurt stock exchange in late 2022. Founded in 2019, Cantourage imports, processes and distributes marijuana for medicinal purposes,

Photo: Benzinga edit of images by Matthew Brodeur and Christian Wiediger on Unsplash