Greenrise Global Brands has welcomed recent developments in Germany as it awaits guidelines from the German Government in the coming months.
Germany’s “traffic light” coalition made plans to legalise recreational cannabis official in November 2021 with the publication of its agreement.
The coalition, which includes the Social Democratic Party of Germany (SPD), the Free Democratic Party (FDP) and The Greens, agreed to legalise the controlled distribution of cannabis to adults for “pleasure purposes”. With a focus on health-oriented cannabis policy, the development aims to move consumers away from the black market, control quality of products and ensure the protection of minors.
This year, five hearings are planned throughout to discuss the legislative process on the controlled supply of cannabis to adults for recreational purposes, with the first meeting being held in June, at the Federal Ministry of Health.
The Federal Government is anticipated to submit a draft law to Parliament (Bundestag) by the end of 2022.
Read more: Germany to begins consultations for cannabis legalisation
Greenrise Global, which has a wholly-owned medical cannabis subsidiary, AMP Alternative Medical Products GmbH that imports EU-GMP medical cannabis from within the European Union and elsewhere and has well-established relationships with pharmacies and clinics across Germany, has welcomed the development.
Supporter of the health benefits of cannabis and a keystone shareholder and director of Greenrise, as well as co-founder of CannaCare Health, Frank Otto, commented: “The consultation process shows that Germany is no longer talking about whether to legalise adult-use, but how.
“We also believe that there will be a domino effect as European countries are watching very closely as Europe’s largest economy joins Canada and California in legalising cannabis for adult use.”
AMP Alternative Medical Products has reported that preliminary unaudited sales for first half year 2022 increased 14 per cent to €268,479 compared to sales of €236,399 during the first half year of 2021.
Greenrise acquired 51 per cent of CannaCare, which sells CBD wellness products through traditional retail channels in Germany and German-speaking markets in Europe, at the beginning of Q2. The company has reported that preliminary Q2 unaudited sales for CannaCare increased 187 per cent to €474,000 compared to Q1 2022 sales of €165,000.
Managing director of AMP and director of Greenrise, Dr Stefan Feuerstein, said: “The exceptional sales growth from CannaCare during the second quarter confirms our strategy of investing in CBD in addition to medical cannabis as we prepare for the potential legalisation of adult-use in Germany.
“We look forward to the government providing guidelines in the coming months, which will provide certainty on how and when to position our businesses.
“We expect pharmacies to play a significant role and are preparing our pharmacy customers for the possibility of selling adult-use products as well as soon as legislation is in effect. We also realigned our medical cannabis business by streamlining our medical sales team, offering more pharmaceutical cannabis products to doctors to prescribe and are preparing to import high-THC flowers from several European cultivators.”
CFO of CannaCare, Dr Tilman Spangenberg, commented: “Greenrise’s investment allowed CannaCare to launch its CBD products in three leading German drugstore chains, which dramatically increased sales in a very short period of time.
“We expect the full impact of this sales channel to unfold in the third as well as fourth quarter. Our priorities for the remainder of this year are to grow CannaCare’s sales and operating cash flow positive by introducing new sales channels and adding additional drugstore chains.”
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