SYDNEY, AUSTRALIA: Althea Group Holdings Limited (ASX:AGH) (‘AGH’, or ‘the Company’), a global leader in the manufacturing, sales, and distribution of cannabis-based medicines and recreational cannabis products, is delighted to share pivotal developments in Germany’s approach to cannabis.
Overview of Legislation Approval The Federal Council of Germany has given its approval to the bill legalising recreational cannabis for personal use. This approval signifies a clear pathway towards the legalisation of recreational cannabis in Germany. Starting from 1 April 2024, adults aged 18 and over would be allowed to possess up to 25 grams of cannabis in public spaces and 50 grams and cultivate up to three cannabis plants in private homes.
The bill, previously passed by the Bundestag, does not include provisions for the commercial sale of recreational cannabis at this stage. However, the coalition government is also expected to begin developing the second pillar of its cannabis policy, which involves establishing a pilot program to explore the controlled sale of recreational cannabis.
Impact on the Industry and Market Sentiment The positive sentiment surrounding Germany’s legalisation of recreational cannabis is significant. With the third-largest economy in the world legalising cannabis and setting it on a path for commercialisation, the industry anticipates a wave of momentum. Removing cannabis as a narcotic would also create more patient access opportunities to medical cannabis in Germany, benefiting companies like Althea.
Furthermore, with a powerhouse country like Germany taking significant steps towards normalising cannabis consumption, it could lead to positive developments across the continent of Europe and may even influence policy decisions in the US.
Althea’s Position in Germany Althea intends to capitalise on this positive sentiment through the expansion of MyAccess Clinics from the UK and Ireland. A subsidiary of AGH, MyAccess Clinics is a private medical clinic model specialising in medicinal cannabis, offering convenient and affordable consultations for patients. MyAccess Clinics provides a capital light way for the business to expand with minimal investment required.
AGH CEO and Managing Director, Joshua Fegan, said: “Althea Group Holdings views this approval as a significant step for the cannabis industry in Germany, signalling a promising future for both pharmaceutical and recreational cannabis operations. We are exhilarated by the prospects this decision unlocks, as it signifies a seismic shift in the perception of cannabis, not only within Germany but also across the global stage.”