Germany’s plans to legalize cannabis stimulate investment opportunities for start-up

During its coalition contract that was presented back in October, Germany’s new government declared its plans to legalize adult-use cannabis.

Up until today, lawmakers are still slacking in terms of drafting Germany’s cannabis legalization bill; not even a schedule has been drawn up thus far.

However, this bleak reality hasn’t dampened the spirit of experts, many of whom remain confident that a legalization law will be curated and passed within the next two years.

Growers are likely to benefit immensely from Germany’s cannabis market (when it eventually transpires) and Berlin-headquartered Sanity Group is one of them. 

The company has constructed a multimillion-dollar cannabis testing and processing facility wedged in the rolling hills of a German vineyard-specked village. 

Sanity Group’s new facility will serve the country’s ever-growing cannabis consumer demographic. As many as five million people are believed to use the plant illegally in the European country.

So far, the specialist company has been on the receiving end of more than 65 million euros (USD$73 million) in financial backing from international and national investors, such as Snoop Dogg’s investment fund Casa Verde and founding members of the Black Eyed Peas

Cannabis legalization in Germany will be a “paradigm shift”

Last September, during the federal election, members of the parties that constitute Germany’s center-left coalition were negotiating their collaborations. Among the many things that were negotiated over, cannabis legalization was one of the first subjects to surface in conversation.

The pact comprises two main junior parties — the environmentalist Greens and the liberal Free Democrats. Each party had been trying to turn the tides in favor of legal weed for quite some time.

The coalition-leading Social Democrats have also been working hard to relax the country’s cannabis laws. 

“The legalization of cannabis [in Germany] is a paradigm shift,” wrote medical doctor and Green member of Parliament, Kirsten Kappert-Gonther, in an email. “Anyone who would prefer to consume a hash cookie instead of an after-work beer in the future should be able to make that decision and stay on legal grounds.”

Now, as industry experts look to the future, full-scale legalization seems highly likely. Should a legal market unfold, Germany could benefit from $5.3 billion in tax revenues and savings on an annual basis.

Cannabis legalization in Germany will be a colossal move for Europe

Europe may have a long way to go before it turns completely green, but things are certainly looking fruitful in the continent, which is home to 83 million people

For example, growing, carrying and consuming cannabis is already legal in Luxembourg. Then there’s Malta, which became the first European country to fully legalize the green plant for adult-use purposes in January.

Switzerland’s “Legalize it” campaign is also generating a lot of momentum. If advocates collect more than 100,000 signatures within an 18-month time frame the plan was accepted by the Council of State Commission in October it could also sway the continent in the direction of overwhelming cannabis reform.

Regardless of what happens, Germany maintains its position as a stern contender in the European medical cannabis market. 

While the drug is still illegal in Germany, small amounts are allowed for personal use following a decriminalization law that was passed a few years ago.

Sanity Group is just a drop in the bucket in terms of the companies that are rushing to generate adequate supply for a looming recreational cannabis market in Germany.

Pharmacies that are currently dispensing medical cannabis will continue doing so, should a recreational market evolve across the country. The aim is to distribute quality-assured cannabis across licensed distribution sites and collect taxes from those sales.