RISK OF DELISTING
Canopy Growth’s plan to consolidate revenue ‘impermissible’ under Nasdaq policy
The Nasdaq stock exchange objects to Canopy Growth’s plan to eventually consolidate the financial results of Canopy USA, reports Mj Biz Daily.
The company had announced a plan to speed its entry into the American market by launching Canopy USA. Canopy USA would then purchase the three American cannabis businesses that Canopy had agreed to buy once recreational cannabis was legal under U.S. law.
MJ Biz Daily highlights that under the plan, Canopy Growth would hold nonvoting, exchangeable shares in Canopy USA, creating “a ringed-fence structure” between it and Canopy USA.
Nasdaq has proposed that this kind of consolidation “is impermissible under Nasdaq’s general policies”, however, Canopy has stated it does not agree with the basis of the Nasdaq’s objection. One expert has suggested the development could see Canopy at the risk of delisting.
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MOVING TO GERMANY?
German adult-use plans sparks US interest in European investments
As Germany looks to legalize recreational cannabis, US and Canadian companies are paying attention, reports Stock Head.
With around 4 million adults consuming cannabis in Germany the market could be an attractive option for overseas cannabis businesses. The plans also aim to legalize the
production, supply and distribution of cannabis.
Stock Head highlights that although the legislative process could be quite lengthy, its already drawing the interest of companies such as:
- Curaleaf Holdings, which acquired a 55% stake in Four 20 Pharma GmbH, a German producer and distributor of medical cannabis.
- High Tide, which has unveiled plans to establish a footprint in the emerging adult-use German market.
GERMAN UPDATES
Germany’s official plans for adult-use legislation revealed
Germany on Wednesday announced plans to legalize cannabis for recreational use, reports The Washington Post.
The country’s health minister Karl Lauterbach presented a detailed paper laying out the regulations for legalization to Germany’s cabinet.
Under the government’s new plans:
- Cannabis and THC will no longer be classified as narcotics.
- The substances will be able to be produced, supplied and distributed to people 18 or older, within a licensed and government-regulated environment.
- Adults can possess 20 to 30 g of recreational cannabis, both in private and in public. – Citizens will be able to cultivate their own cannabis.
- A cannabis tax will be imposed.
- An upper limit on THC content for adults under 21 may be introduced. – Advertising for cannabis will be completely prohibited.
- Neutral product packaging will be required.
The Government’s key issues paper said: “The drug policy must be renewed. We want to reform cannabis consumption from a health perspective.”
BUSINESSCANN
Hemp and CBD to be removed from german narcotics act bringing an end to business prosecutions
Germany’s hemp industry has welcomed the country’s draft cannabis laws, reports BusinessCann, as the new cannabis regulations will be removing hemp and CBD products from the German Narcotics Act.
Jürgen Neumeyer, Managing Director of the Cannabis Business Industry Association (BvCW), welcomed the news, telling the publication that: “The BvCW is currently advising the federal government in this direction and calling for the complete new regulation.”
The development will also impact ongoing law cases, as, according to the key points paper, when the new regulations come into force ‘ongoing investigations and criminal proceedings’ related to hemp and cbd will be terminated.
