Shares of companies related to the medical marijuana market are seeing euphoric gains today. Shares of Tilray (TLRY.US), Canopy Growth (CGC.US), Aurora Cannabis (ACB.US), and Cronos (CRON.US). Earlier this week, Vice President Kamala Harris spoke optimistically about the U.S. administration's efforts to date to reduce federal regulations. Positive news also came from Germany, which intends to loosen regulations, providing cannabis legalization.
- Kamala Harris conveyed that the time has come for the US, 'to legalize marijuana.' This represents only a fraction of the broader background, as the key news for the market came from Germany. The first step in this direction is expected to be the deletion of cannabis from its status as a 'narcotic' to a less dangerous substance, as recommended by the U.S. Department of Health and Human Services, 2023.
- Canopy Growth is trading up nearly 50% today, and has a fairly busy calendar this week, including the prospect of forming a Canopy USA holding company through which it could achieve the rapid legalization of marijuana in America.
- A Marijuana Moment source pointed out that Germany has passed a bill that will likely fully legalize marijuana, after German lawmakers today refused to take a legal step that would have delayed the process by six months.
- As a result, marijuana will become legal in Germany on April 1 - legalizing marijuana possession, home cultivation, and distribution to members of "social clubs." Germany's Health Minister Karl Lauterbach confirmed the reports. The next phase of legalization will come when Germany passes legislation standardizing commercial production and retail sales
- Canopy Growth generates 12% of its revenue from Germany in particular, and is likely to benefit from these changes. The largest U.S. company in the U.S. cannabis market, Tilray generates about 45% of its annual revenue ($285 million) from Europe, the Middle East and Africa (including Germany). Cronos, on the other hand, is less likely to benefit, becasue according to S&P Global Market Intelligence, about 99% of its revenue comes from just two countries: Canada and Israel.
Tilray shares (TLRY.US)
The company's shares are trading up more than 13% today and have broken above the 200-session moving average (red line). 
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