Cannabis stocks are mostly in the red Monday, except for ALEF stock. Shares of Aleafia Health (TSX:ALEF) (OTCQX:ALEAF) moved higher this morning after the company said it's entering the German cannabis market.
Here's what we know.
ALEF Stock: Aleafia Health Entering German Cannabis Market
On May 6, Aleafia Health announced it is entering the German medical cannabis market. It is doing so through its joint venture with Acnos Pharma GmbH, a German pharmaceutical wholesaler. Under the terms of the agreement, the joint venture entity will buy Aleafia Health's branded cannabis oils for distribution and for usage in clinical trials. More details on the move can be read here.
Julian Fantino, Chairman of Aleafia Health, said the Toronto-area cannabis company is happy to "soon see the export of our cannabis health and wellness products" to the German market.
The cannabis market appears to share this excitement. And that's not a surprise for several reasons. For starters, the German cannabis market is going to grow significantly over the next six years. According to the press release, and citing a Bank of Montreal report, the market could potentially bring in revenues of $5 billion by 2025 for cannabis producers.
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“Germany will not just be the largest medical cannabis market in Europe," said Maximillian Claudel, Acnos co-owner. "It will also become the model example for Europe in regard to regulations and quality standards."
Figures such as this could have played a role in why ALEF stock is up in double-digits Monday.
According to Yahoo Finance, as of 12:23 PM EDT, ALEF stock is trading at $1.55 on the TSX, putting the cannabis stock up 12.32%. Earlier in the trading day, ALEF stock was hanging around 13%.
The German cannabis market's potential might not be the only reason ALEF stock is up today. After ALEF stock lost ground last week after reporting 2018 earnings, Aleafia Health investors might have needed today's news to regain confidence in the cannabis stock.
Takeaway
What do you think about Aleafia Health entering the German cannabis market? Do you think it will allow the Canadian cannabis company to grow internationally?
Let us know what you think in the comments below!
Featured image: Canva
