Canopy Growth rocketed to lead a weed stock rally Friday on news that Germany approved the partial legalization of cannabis in the country.
An announcement from the German parliament early Friday said that cannabis possession and home cultivation will be decriminalized starting April 1 and it will be officially recognized as a nonnarcotic. The new law allows adults over the age of 18 to possess up to 25 grams of cannabis in public and store up to 50 grams at home for personal consumption. It also legalizes possession of three live cannabis plants at home, allowing users to grow their own flowers.
Smoking marijuana in public will be banned in schools, sports facilities and within 100 meters of those spaces.
Canopy Growth applauded the ruling in a Friday news release, calling it, "a clear victory for enhanced medical cannabis access."
Canopy says the changes present an opportunity to expand its commercial presence in the country through its German-based Storz & Bickel vaporizer brand, as well as its Canopy Medical medicinal offerings.
By classifying weed as a nonnarcotic, it opens the door for patients to engage with their physicians regarding medical cannabis treatments, Canopy said.
The news comes days after U.S. Vice President Kamala Harris criticized U.S. marijuana restrictions and urged the Drug Enforcement Administration to expedite rescheduling it to a less-serious drug.
Canopy Growth, Weed Stocks Spike
Canopy Growth stock soared 68.6% Friday on the news, marking nearly a 150% gain on the week, MarketSurge charts show. CGC stock has rallied 50.5% in 2024.
Tilray leapt 18.5% during Friday trade. TLRY stock rallied 33.5% on the week. As of Friday's close, shares are up less than 1% on the year.
Aurora Cannabis spiked 23.5% Friday, putting it within striking distance of its 200-day moving average. ACB stock vaulted nearly 50% on the week.
Cronos Group on Friday jumped 9.2% for a 24.3% rally over the week. CRON stock closed just below a 2.64 buy point for a 23-week cup base.
The Advisor Pure U.S. Cannabis ETF eased 1.5% Friday. Shares leapt nearly 37% year to date.
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