CanniMed Therapeutics Inc (TSE:CMED)(OTCMKTS:CMMDF)(FRA:0GB) , Cronos Group(CVE:MJN)(OTCMKTS:PRMCF) , Aphria Inc (CVE:APH) (OTCMKTS:APHQF) andCanopy Growth Corp (TSE:CGC) (OTCMKTS:TWMJF) (FRA:11L1) are among the most heavily traded stocks on their respective Canadian exchanges in the last few days, and the cause is rooted in Germany. The German parliament voted unanimously to pass the “cannabis as medicine” law, which takes effect in March of 2017.
German Federal Minister of Health Hermann Gröhe said in a statement, “People with disabilities need the best possible treatment, and shouldn’t have to resort to drug traffickers if that means cannabis, which will be covered by health insurance.”
Parliamentary secretary Ingrid Fischbach added, “For serious illnesses that cause chronic pain like multiple sclerosis, cannabis in medicinal form helps alleviate those symptoms.”
There is potentially a 230% bump in revenue for Canadian ACMPR growers as a result of the German medical market coming on stream.
The statement concluded that the availability of cannabis in Germany would be through imports until “state-controlled cultivation” can be established.
Germany has a population of 80 million people, and Canada, 35 million. At the end of September 2016, there were 98,460 registered clients who had consumed 4,773 kilograms of marijuana and 2,420 kilograms of cannabis oil. That suggests, if there 2.3 more Germans than Canadians, an increased marketplace totalling 15,750 kilograms of dried bud and 7,986 kilograms of oil.
Or, in simpler terms, there is potentially a 230% bump in revenue for Canadian ACMPR growers as a result of the German medical market coming on stream.
Canadian Cannabis Companies poised to benefit
Some of Canada’s leading Access to Cannabis for Medical Purposes Regulation (ACMPR)-accredited companies applauded the development, as they are already positioned to be a source of medical cannabis for Germans. With the population of Germany roughly double that of Canada, the development represents access to another market that is likely to be worth twice what Canada’s is.
Cronos Group moved to position itself to access the German market serendipitously in October 2016, announcing its wholly owned subsidiary, Peace Naturals Project Inc, had shipped its first export of premium medicinal marijuana to Germany.
“This export marks an important milestone in Cronos Group’s strategic global expansion and the beginning of a long, fruitful relationship between Peace and Pedanios GmbH,” said Mike Gorenstein, Cronos Group’s CEO.