Canopy Growth's stock doubles to record weekly gain after Germany votes to legalize pot

By Steve Gelsi

Stock rises another 35% on Friday after Germany decriminalizes cannabis

Canopy Growth Corp.'s stock has now doubled for its best week ever, with an added push coming after a historic vote in Germany on Friday in favor of decriminalizing cannabis.

Canopy Growth Corp.'s stock (CGC) (CA:WEED) was up by nearly 36% on Friday, bringing its rise for the week to about 114%. Tilray Brands Inc.'s stock (TLRY) rose by 13% to bring its gains for the week to 32.4%.

Both companies have a presence in Germany.

Starting April 1, possession and home cultivation of marijuana will be decriminalized in Germany under a measure that won final passage in the Bundesrat, the upper chamber of Germany's parliament.

Under the new rule, it will be legal for adults age 18 and older to possess up to 25 grams (just under one ounce) of cannabis and to grow up to three plants at home. Noncommercial cannabis clubs will be allowed to supply up to 500 members each.

Canopy Growth has exposure to the German market through its ownership of the Germany-based Storz & Bickel vaporizer company. It also operates its Canopy Medical unit, which it describes as a potential top-three player in the German cannabis industry.

"The removal of narcotic status for cannabis is expected to accelerate growth of the German medical cannabis market," Canopy Growth said in a prepared statement.

Tilray operates a cultivation facility in Germany as well as Tilray Pharma, a medical distribution business.

Curaleaf Holdings Inc.'s stock (CURLF) fell 1% on Friday but held on to gains of more than 30% for the week. The company has multiple cannabis businesses in Europe, including Four 20 Pharma in Germany.

"This legislation has set the standard for future cannabis regulatory programs across all of Europe and serves as a wakeup call to U.S. politicians and our regulatory agencies who continue to stall progress," Curaleaf Executive Chair Boris Jordan said in a prepared statement.

Canopy Growth and other marijuana stocks have been in rally mode for much of the month of March after President Joe Biden mentioned the rescheduling of cannabis in his State of the Union speech.

That was followed up by comments on March 15 by Vice President Kamala Harris, who said that the current Schedule I classification for marijuana is "absurd" and that the plant should be rescheduled "as soon as possible."

Cannabis stocks finally fell back Friday after big gains in recent sessions, but Canopy Growth and Tilray sustained their rise on the heels of the vote in Germany.

Also read: Cannabis stocks extend gains after Biden White House shows support of marijuana reforms

-Steve Gelsi

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03-22-24 1329ET

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