🇩🇪 Prost!

Germany approves partial cannabis legalization. Plus, what cannabis investors can learn from Warren Buffett's playbook.

TGIF, Investors! Can California learn a thing or two from the Lone Star State about tax structure? Here’s what panelists at Benzinga's Market Spotlight conference on Thursday had to say about the similarities.

And, check out the newest episode of Cannabis Insider, also available on Apple and Spotify.*

Puff Pass: Did someone forward you this email? Click here to get automatically subscribed.

TOP STORY

Briefly: The Benzinga Cannabis Market Spotlight in California conference on hosted several key discussions about the current mindset of the cannabis industry investors.

So Basically: California's cannabis market is challenged by a lack of growth in jurisdictions, said Morgan Paxhia, managing partner at the cannabis investment fund Poseidon.

So Then: Paxhia, who has been a fan of Warren Buffett's Berkshire Hathaway since he was a kid, noted Berkshire built its business on companies with leadership teams it could trust.

So What? Lack of liquidity is another major challenge in the industry right now. But Paxhia believes addressing trust and culture first could change that. "Respect for the investor has gone down considerably. I would like to see that come back," he said, adding that more capital would follow.

A MESSAGE FROM OUR PARTNERS

FIVE ZINGERS

Law enforcement leaders urge Biden to reclassify cannabis, citing ’Direct conflict between state and federal laws'

New York's unlicensed cannabis fine fiasco: $25M remain uncollected

Kansas repels marijuana policy reform as Arkansas embraces it

U.S. Army invests $1.9M to develop hemp-manufactured buildings for military operations

Cannabis DUIs in New York drop 20% since legalization

ONE FOR THE ROAD

Chevy Chase Dancing GIF

Briefly: The Bundestag approved partial cannabis legalization in a final floor vote on Friday, making Germany the third country in Europe to legalize adult-use marijuana after Malta and Luxembourg.

So Basically: Under Germany’s partial cannabis legalization, known as the CanG bill, cannabis will be removed from the Narcotics Act where it was listed as a banned substance and subject to specific criminal provisions.

So Then: Adults over 18 will now be allowed to possess 25 grams for personal consumption and in public, keep 50 grams of dried marijuana in private, and home-grow a maximum of three plants. Initially, cannabis sales will only be permitted in licensed shops in certain regions.

So What? “With this law, we will achieve a significant reduction in the black market, better protection for children and young people and a safer product for older consumers,” said German Health Minister Karl Lauterbach.

What Next: "The passage of the law is a tremendous victory and we look forward to continued progress in Germany. In the long term, we are ultimately striving for full-scale adult-use legalization across the entire value chain."

A MESSAGE FROM OUR PARTNERS

KEEP READING

Before you go, be sure to subscribe to our other newsletters:

Ring The Bell: If you have to pick just one daily financial newsletter, it’s not a choice. Subscribe here.

The Street Sheet: A Wall Street cheat sheet, delivered every Sunday directly to your inbox. One-click subscribe here.

Future Finance: TradFi is tired. Wake up to the future of finance with this midday fintech and crypto letter. Subscribe here.

The Flag: Top takes from Washington to Wall Street impacting policy and your portfolio. One-click subscribe here.