The cannabis sector has risen from its slumber following significant regulatory changes in Germany and potential marijuana rescheduling in the United States. Tim Seymour, founder and CIO of Seymour Asset Management, delved into these “exciting times” in cannabis during his appearance on Benzinga’s PreMarket Prep.
Germany’s recent announcement of new laws, scheduled to take effect on April 1, removes cannabis from its Narcotics Act where it was previously considered a banned substance. This move has fueled a recent rally in weed stocks, with Tim Seymour noting Germany’s potential to federally legalize the adult market before the U.S.
Pointing to Tilray Brands, Inc. (TLRY) as a key player in Europe positioned to benefit from Germany’s regulatory changes, Seymour highlighted the foresight of the company’s prior investments in the region.
Investors are optimistic about the growth prospects in the cannabis sector following Germany’s progressive legal stance, anticipating increased sales and revenue. Many are hopeful that the U.S. will follow suit with federal rescheduling and perhaps decriminalization.
Highlighting the expanding legalization of marijuana in multiple states, Seymour sees U.S. rescheduling as inevitable, particularly under the time constraints faced by the Biden Administration before the next election.
Recently, Vice President Kamala Harris urged the DEA to accelerate marijuana rescheduling, emphasizing the unfair categorization of marijuana as more dangerous than fentanyl and heroin.
Seymour foresees significant growth in the cannabis industry, driven by efficiency enhancements and a series of forthcoming catalysts. He believes that current investors are poised to reap substantial rewards in the future.
TLRY Price Action: According to Benzinga Pro, Tilray shares were up 0.92% at $2.50 at publication time.
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