Florida cannabis operator Flora Growth Corp. (Nasdaq: FLGC) is investing millions into Germany’s cannabis sector. Following legalization late last month, the company believes it will become the world’s largest adult-use market.
Flora just announced that it will acquire the nation’s company TruHC Pharma GmbH and its EU-GMP-certified cultivation facility. The Florida pot producer will provide TruHC with over 2.7 million common shares, currently valued at just under US$7.4 million.
The German cannabis market is projected to be valued at over US$10 billion in the coming years. Flora says that banking and tax constraints will not be an issue for the country’s sector like they are in the United States.
“TruHC brings an EU-GMP facility and a management team that pioneered the cannabis industry in Germany to the Flora family,” Flora chief executive Clifford Starke said. “Together, we are excited to assume pack leadership in a sector poised for explosive growth.”
Flora claims that one of its German subsidiaries was responsible for selling the first gram of medical cannabis in the country. Furthermore, the company says it was the first to receive a medical pot license in Germany. The nation currently has about 230,000 medical marijuana patients.
German citizens are now permitted to keep up to 50 grams of dried cannabis at home and can grow up to three plants. Non-profit social clubs will start selling up to 25 grams to residents in July: the amount citizens are permitted to carry in public. Although the legal change is significant, a large-scale distribution framework is still needed.
“By joining forces, we have created a leader in German cannabis at a uniquely opportune time,” TruHC CEO Hendrik Knopp added.
Thousands flocked to Berlin's Brandenburg Gate for massive celebrations as cannabis legalization took effect in Germany. pic.twitter.com/K1QmYTm2Of
— RT (@RT_com) April 1, 2024
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Canopy Growth celebrates; Catholic Church and others not so enthused
Canada’s major cannabis operator Canopy Growth Corporation (TSX: WEED) is quite pleased with Germany’s legalization move. The company has a German vaporizer brand: 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,” Storz & Bickel’s Managing Director Jürgen Bickel said.
However, others are not so enthusiastic about the large grass fire now burning outside in Germany.
The Catholic Church maintains that “the use of drugs inflicts very grave damage on human health and life. Their use, except on strictly therapeutic grounds, is a grave offence.” The Catholic News Agency published an article voicing concerns on Tuesday.
Meanwhile, the German politician and lawmaker Thorsten Frei told the nation’s Augsburger Allgemeine newspaper he would help to revoke the new laws if given the opportunity. He is the State Chairman for the CDU Baden-Württemberg political party.
“In our view, drugs policy, particularly with respect to protecting young people, is an issue of such central significance that we will revoke the legalization of cannabis in the event we take power,” Frei said.
rowan@mugglehead.com
