Key points:
- Kanabo (KNB) shares barely moved on German cannabis legalisation news.
- Cannabis investors were unconvinced about the potential impact of the move.
- As a result, it will take much more for cannabis stocks to rally higher.
The Kanabo Group PLC (LON: KNB) share price barely moved despite Germany’s plans to legalise recreational cannabis use. The lacklustre reaction could have been triggered because the move is just a proposal and is scheduled to become law in 2024.
Many cannabis investors are reeling from massive losses despite the legalisation of recreational cannabis in Canada and the partial legalisation of cannabis across many US states. At least 40% of the American population now has access to either medical cannabis, legal in 37 states, or recreational cannabis, legally available in 19 states.
Also read: The Five Best Growth Stocks To Watch In 2022.
A few years ago, many thought that the United States would fully decriminalise cannabis use at the Federal level under President Donald Trump’s administration, but the same did not happen. As a result, the global cannabis industry is in a massive downtrend despite the steps taken by some countries to legalise cannabis use.
Many argue that the path to the legalisation of cannabis is taking too long in most regions, including the Americas, Asia, Africa and Europe, despite the drug’s medical benefits being well documented. In addition, some experts have shown that recreational cannabis use could be the perfect antidote to ending tobacco (cigarette) addiction.
The UK is working towards legalising cannabis vape use as a remedy for drug addiction, although it is unclear if the new government will continue the program. It will take much more for the cannabis industry to recover and for cannabis stocks such as Kanabo Group to rally higher.
Kanabo Group (KNB) shares have fallen 83.4% this year, while Canadian cannabis giant Tilray (TLRY) has seen its stock plunge over 50% since the year started. However, both companies have European operations and could benefit from Germany legalising cannabis use.
*This is not investment advice.
Kanabo share price.
The Kanabo share price barely moved despite news of Germany’s plans to legalise cannabis.