Cannabis stocks are climbing ahead of the German legalization date this Monday, April 1. Indeed, many of the biggest marijuana companies have soared as the country’s long-awaited weed decriminalization process comes full circle.
The German parliament announced last Friday that cannabis possession and home cultivation will be decriminalized in the country beginning at the start of April. Per the new law, cannabis will be officially recognized as a nonnarcotic.
Stocks like Canopy Growth (NASDAQ:CGC), Aurora Cannabis (NASDAQ:ACB) and Tilray (NASDAQ:TLRY) have surged in the past month. CGC stock is leading the bunch, up a staggering 104% in the past 30 days. Tilray and Aurora are also well in the green over the past month; both are up 27% as of this writing.
Just today, CGC and Tilray are up 16% and 7.5%, respectively.
This has helped erase the stocks’ losses since the start of the year. Canopy Growth is up about 51% since Jan. 1, while Tilray is up just 4%. Aurora stock is actually still in the red by about 11% year-to-date.
What Does German Legalization Mean for Cannabis Stocks?
As part of the legislation, adults over 18 are now permitted to own up to 25 grams of cannabis in public or up to 50 grams at home for recreational use. The law also allows for the possession of up to three live plants at home. Smoking cannabis will remain banned in many public locations, including schools and sports facilities.
Perhaps predictably, Canopy Growth enthusiastically supports the new law.
“The re-classification of cannabis as a non-narcotic is a game-changer for patients and physicians who will be empowered to better explore cannabis as a viable treatment option for an expanded range of condition [sic],” said Tara Rozalowsky, Chief Growth Officer of Canopy Growth. “We are thrilled to be able to continue serving the medical community by delivering high-quality cannabis products that meet patient needs and we look forward to increasing our already leading presence in the German medical cannabis market.”
Canopy Growth remains one of the largest players in the cannabis market. The Canadian-based company ranks as the fourth largest cannabis company by market capitalization and has been a favorite among investors since the marijuana-related initial public offerings (IPOs) first hit the market back in 2014.
Canopy is also notable for its plans to expand its presence in Germany through Stoz & Bickel, a German vaporizer brand, positioning the company as a top three player in the burgeoning German marijuana industry.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
