Germany’s expanding medical cannabis market is a boon for Canadian companies 📈

DEUTSCHLAND
Germany’s expanding medical cannabis market is a boon for Canadian companies

Driving the news: Canadian cannabis companies are supplying nearly half of Germany’s booming medical market, one of the few bright spots in an industry that has struggled to sustain growth the last few years.  

And it appears there’s plenty of room for them to run.

What happened: In the first quarter of this year, Canada accounted for 43.1% of the 37,223 kilograms of imported dried flower to Germany, according to the Federal Institute for Drugs and Medical Devices (BfArM).

Canada’s first-quarter exports of 16,057 kilograms were nearly half the amount (33,155 kilograms) the country exported to Germany in all of 2024.

What they’re saying: “Canada is in a great position,” Frederico Gomes, an analyst at ATB Capital Markets who covers the sector, said.

“I think it's going to remain the main exporter of high quality cannabis to markets like Germany.”

In a May investor note, Gomes signaled the tide may be turning for publicly traded Canadian companies, long mired in failed consolidations, elusive profitability, and equity dilution.

Read the full story from Chris Casacchia. 

“We want to make sure that New York becomes the cannabis capital of the globe,” New York Mayor Eric Adams said at the New York City Cannabis Festival and Resource Fair. “Learn, get more information and let’s keep lighting up.”

Adams has touted his administration’s push to shut down illicit cannabis shops in the city as part of his long-shot bid for re-election.

Senate advances Terrance Cole’s nomination to lead DEA 👀

The Senate advanced Terrance Cole’s nomination to lead the Drug Enforcement Administration, the agency charge of the cannabis rescheduling process, in a cloture vote 44-43 on Monday evening. The final vote will be today around 11 AM. Cole has said restarting the rescheduling process would be “one of his first priorities,” in office, but declined to give his personal stance on the matter. So far, that process has been stalled under President Trump as the DEA has been led by interim leaders. Read more about Cole’s stance in our May 1 newsletter. 

Texas Hemp ban redux 🚫

Monday was the first day of Texas's special legislative session, and among the 47 bills that were filed was SB 5, which would essentially ban the manufacturing and sale of any hemp-derived cannabinoid except cannabidiol or cannabigerol. The legislature has already scheduled a hearing on the bill this morning at 9 AM before the Senate Committee on State Affairs. Good luck to anyone who had to spend the night racing across the state to make it to the hearing this morning to testify.

North Dakota’s medical marijuana program expands 🌿

North Dakota will add low dose THC edibles to medical dispensaries, as part of House Bill 1203 on August 1. The bill allows edible products in the form of hard or soft lozenges in a square shape that contain no more than 5 milligrams of THC per serving and no more than 50 milligrams in a package. Other edible THC products or beverages remain prohibited.

LIT ALERTS’ INSIGHTS
New Jersey’s independent retailers

A state originally dominated by multi-state operator's products and retail stores has transformed in the last 18 months.

A strong group of excellent retail operators who have taken over the top spots are focused on their local customers and their bottom line. Most of these retailer operators know each other, are willing to help one another, and have found success in creating strong relationships with their local communities and their vendors.

From our partners at Lit Alerts, these are the New Jersey independent retail “heavy hitters” that have burst onto the scene and have held their spots in the top quartile of store performance by estimated monthly sales volume.

As New Jersey continues to expand, look for this group to continue to hold their spots and possibly expand them as they look to open more locations and pull away from their local pack.

Have a look at Lit Alerts’ exclusive insights. 👇

To learn more about Lit Alerts and get a special offer only available to Cultivated readers, visit litalerts.com.

Cresco Labs is leaving California 👋

Cresco Labs, a Chicago-based cannabis firm, announced plans to divest its cultivation, manufacturing, and distribution operations in California. It’s the latest sign of California’s challenging market. The company said that it has yet to secure a buyer, but it expects a tentative deal "within the next several quarters." Cresco was once on the verge of becoming the largest cannabis company in the United States, until its planned merger with Columbia Care fell through. Once it leaves California, the company will still be active in Illinois, Pennsylvania, Ohio, New York, Massachusetts, Michigan and Florida. 

Canaccord Genuity suspends cannabis coverage 📉

As perhaps yet another sign that there is diminishing interest in investing in cannabis, Canaccord Genuity, one of the first major investment banks to work with the industry, said Friday that it would be suspending its coverage of 15 cannabis stocks. The announcement says that coverage is suspended due to the departure of an analyst, but there is no word on whether the company plans to resume coverage with a new analyst any time soon. The bank didn’t immediately respond to a request for comment.

And more: 

Oregon cannabis brand Alibi is launching its line of vapes and pre-rolls in New York.

The White House adds to Drug Control office 🩺

Roneet Lev, a physician and former chief medical officer at the White House Office of National Drug Control Policy (ONDCP), has re-joined the ONDCP. She has previously described cannabis as a public health risk and called it an “insult” to refer to it as medicine. Anti-cannabis group Smart Approaches to Marijuana cheered the move on social media, calling Lev’s appointment a “big win for public health.”

NIDA says cutting ties with Ole Miss is a result of DOGE 🤔

The National Institute on Drug Abuse (NIDA) said earlier this month it is cutting its contract with the University of Mississippi, which is the only federally-approved provider of research cannabis. NIDA says the contract was cut as a result of the Department of Government Efficiency (DOGE). Read more.

• The New York Cannabis Control Board will host a meeting on Friday, July 25 in Troy. Go here for more details — and we’ll bring you the key takeaways next week. 

• Minnesota’s Office of Cannabis Management will host the next lottery for cannabis retail license applicants today at 3 PM Central. The lottery will be for those not selected on June 5. The state will also open cannabis event organizer and testing facility lotteries on August 1.

Cannabis use and genetic changes 🧪

A new study published in the journal Molecular Psychiatry found that cannabis use could be linked to changes in the human epigenome. Researchers say the effect of cannabis use on epigenetic changes is poorly understood. Read more.

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