Germany Going Legal – Play It With This U.S. Leader

With a total of 15 states legalizing either recreational or medical marijuana in some capacity, the U.S. is slowly moving towards cannabis as an industry worth billions of dollars and could be on track to become one of America’s top five industries by 2020. Continued legalization effort overseas will also help fuel growth for American companies that are already cultivating business abroad.,

The “businesscann” is a business that offers cannabis to businesses in Germany. They are going legal and are partnering with the United States leader, President Donald Trump.

Germany Going Legal - Play It With This U.S. Leader

Germany has recently given cannabis investors cause to rejoice. This week, it was announced that the next German government had already achieved an agreement to legalize and tax adult-use cannabis.

From Marijuana Moment, here are a few additional information.

Party leaders in Germany’s next government coalition have agreed to legalize marijuana across the country.

During the forthcoming parliamentary session, legalizing legislation is likely to be presented. It would also expand drug harm reduction programs and prohibit cigarette and alcohol advertising, as well as cannabis advertising.

While the parliamentarians stressed that the reform’s goal is not to increase the country’s tax income, the FDP claimed in its election program that taxing cannabis like cigarettes might raise €1 billion per year.

Medical cannabis was approved in Germany in 2017, and the industry has grown fast in the previous two years. Germany has similarly decriminalized possession and usage. This bill would provide a framework for legalizing, regulating, and taxing adult-use cannabis in the same manner that alcohol is controlled and taxed.

There are two reasons why this is a positive development for cannabis stocks.

This is a watershed moment for Germany and the European Union as a whole.

Germany Could Be a Huge Cannabis Market: With a population of 140 million people, Germany is the European Union’s biggest and wealthiest nation. If Germany legalizes marijuana, it will undoubtedly become one of the world’s major cannabis marketplaces. Prohibition Partners, a cannabis business research organization, estimates that yearly cannabis sales might reach $3.6 billion by 2025.

Germany is paving the way for other EU countries to legalize marijuana: Equally significant, if Germany becomes legal, it sets a precedent for the rest of the European Union to follow. The European Union has a population of over 740 million people, almost double that of the United States. According to several estimates, Europe will become the world’s biggest cannabis market. The European Union cannabis industry is estimated to reach $37 billion by 2027, according to market research company Research and Markets.

Investors, understandably, want to know how they may profit from the trend. Today, I’ll explain why becoming a pioneer in the cannabis sector in the United States is a terrific approach to invest in the German and European markets.

With a market capitalization of $7 billion, Curaleaf Holdings (CSE: CURL, OTC: CURLF) is one of the biggest cannabis firms in the United States. Curaleaf, based in Wakefield, Massachusetts, has a remarkable portfolio of licenses, dispensaries, and grow operations in some of the country’s fastest-growing cannabis markets.

  • 23 state of operation
  • There are 101 dispensaries in the area.
  • There are 22 cultivation sites in all.
  • 30 locations for processing
  • 350,000 patients have signed up.

While Curaleaf is booming in the United States, the firm has been aggressively expanding into Europe. Curaleaf paid $286 million for one of the top medical cannabis firms in the European Union in March. From the press release, here are some further information.

For a base consideration of approximately US$286 million, Curaleaf Holdings, Inc. has signed a formal agreement to acquire EMMAC Life Sciences Limited (“EMMAC”), Europe’s biggest vertically integrated independent cannabis firm.

EMMAC’s platform brings cultivation, EU-GMP processing, distribution, and R&D operations across several key European medical cannabis markets, including the United Kingdom, Germany, Italy, Spain, and Portugal, as Europe’s largest vertically integrated independent cannabis company. In addition, EMMAC has a presence and collaborations in European Union nations that are implementing new medical cannabis access programs. The cannabis flower production cost leader in the market is EMMAC’s Portugal-based growing facility.

Curaleaf wasted little time once the transaction was completed in getting into the German market. In May, Curaleaf announced the introduction of a medical cannabis product line in Germany via its fully owned subsidiary Adven GMBH. From the press release, here are some further information.

The first introduction of a high THC oil product is intended to fulfill urgent patient demand, but it will be expanded over the year to include a variety of strengths and THC/CBD combinations in both oil and flower forms, meeting a broad range of patient demands.

Curaleaf announced on November 1 that all of its worldwide companies will be renamed Curaleaf International. Curaleaf has made a fantastic effort to boost its brand identification in Europe and simplify operations.

As you can see, Curaleaf is making significant steps in Europe and Germany, and with Germany laying the ground for legalization, these actions could result in increased IG income in the area in the coming years.

Curaleaf has dropped by 45 percent from its 52-week high.

In 2020, Curaleaf has underperformed the larger cannabis market, with shares down over 45 percent from their 52-week high. Despite Curaleaf’s remarkable revenue growth, investors are dissatisfied that there hasn’t been more movement on legalizing since Democrats took control of the White House and both houses of Congress in 2021. Looking forward, I anticipate additional movement on legalization and continued growth from Curaleaf, both of which should help shares. Take a look at the chart below for a 12-month period.


The Big Picture on Curaleaf and Germany

With its recent expansion into the European Union, product introductions, and rebranding, Curaleaf is well positioned to profit on Germany’s legalization efforts. Looking forward, Germany is only the tip of the iceberg; other European nations should follow, and I anticipate Curaleaf to benefit significantly.

Curaleaf Holdings is owned by author Michael Vodicka.

Author Bio & Cannabis Stock Trading

Michael Vodicka is a stock analyst with over 20 years of trading and investment expertise. His work has been published in some of the industry’s most prestigious journals. Since 2013, he has been investing and directing investors in the cannabis industry.

Michael Vodicka

Members of Cannabis Stock Trades benefit from Mr. Vodicka’s knowledge and advice.

Join Cannabis Stock Trades for unique research, trade alerts, and a model portfolio from Mr. Vodicka.

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