- North American cannabis firms, facing prohibitive laws, an overcrowded market and a deeply entrenched illicit sector at home are ramping up investments in Germany after the country partly legalized marijuana use.
"Canadian market is very challenging for these producers and Germany is probably the largest opportunity for them," said Frederico Gomes, analyst at brokerage ATB Capital Markets. Canada's OrganiGram had in June announced a 14 million euro investment - 16.5% of its overseas investments funds - in Berlin-based Sanity Group.
Another draw is that Germany does not impose high taxes on medical marijuana sales, keeping prices competitive to the illicit market in contrast to Canada, OrganiGram CEO Beena Goldenberg said.BMO Capital Markets chief investment strategist Brian Belski joins Morning Brief to break down his chart for the Yahoo Finance Chartbook, which highlights the S&P 500 max drawdown during the second year of a bull market.