After a period of dormancy, the cannabis industry is experiencing a revival in the wake of Germany’s recent legalization move and potential marijuana reclassification in the United States. Tim Seymour, founder and CIO of Seymour Asset Management, in a discussion on Benzinga’s PreMarket Prep, expressed his optimism about the current “exciting times” in the cannabis sector.
The regulatory adjustments announced by Germany, expected to go into effect on April 1, have been a significant driver behind the recent surge in cannabis stocks. With cannabis being removed from Germany’s Narcotics Act, a law that previously classified it as a forbidden substance, the country is opening up to new possibilities in the cannabis market.
“Germany has stealthily surpassed the U.S., and there’s a likelihood they might federally legalize the adult market before we do,” Seymour remarked during the show.
Focusing on Tilray Brands, Inc. (TLRY) as a major player in Europe due to its strategic investments years prior, Seymour believes the company is well-positioned to thrive under the new German regulations.
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Investors are eyeing Germany’s progressive legal moves as a positive step for the cannabis industry, anticipating increased sales and revenue growth. Many hope that the U.S. will follow suit with federal reclassification and potential decriminalization.
Seymour highlighted the growing number of states legalizing medical and recreational marijuana and predicted an inevitable rescheduling in the U.S., noting the Biden Administration’s limited time before the next election.
Vice President Kamala Harris recently urged the DEA to expedite marijuana rescheduling during a White House discussion, denouncing the current classification of marijuana as unjust and illogical.
Seymour foresees significant growth in the cannabis industry, driven by enhanced efficiency and upcoming catalysts. “Investors who are already in this space will undoubtedly reap the rewards,” he affirmed.
According to Benzinga Pro, Tilray shares were up by 0.92% to $2.50 at the time of publication.
