💸 The Tape

Germany’s cannabis landscape has undergone significant transformation in recent years, reflecting a cautious yet progressive shift in drug policy. In April 2024, under Chancellor Olaf Scholz’s coalition government, Germany partially decriminalized cannabis, allowing adults to possess up to 25 grams for personal use and grow up to three plants at home. Starting July 2024, nonprofit “cannabis clubs” with a maximum of 500 members each were permitted, marking a step toward regulated recreational use. This legislation, a flagship reform of the Scholz administration, aimed to curb the black market, reduce drug-related crime, and align Germany with other European nations exploring liberalization. However, the policy remains limited, with commercial sales still prohibited and broader reforms, such as the proposed “Pillar 2” pilot programs for regulated distribution, stalled amid political upheaval.

The collapse of Scholz’s coalition in November 2024, followed by a snap election on February 23, 2025, ushered in a conservative landslide led by Friedrich Merz and his Christian Democratic Union (CDU). Merz, now poised to become chancellor, campaigned on a platform emphasizing economic recovery and stricter migration controls, but his stance on cannabis has raised alarms among advocates. He has consistently vowed to reverse the 2024 decriminalization, arguing it fuels drug-related crime and poses risks to public health, particularly for young people. During the campaign, Merz blamed the policy for an alleged uptick in criminal activity, echoing long-standing conservative narratives about cannabis as a gateway drug.

If Merz follows through, some of the liberties Germans received with the progresing of the Pillar system would be rolled back to a degree but he will have to build coalitions within the German government which would be tough. Repealing the law would reinstate criminal penalties for possession and cultivation, likely driving users back to illegal markets and undoing efforts to regulate quality and safety. Cannabis clubs, only recently established, would face closure, disrupting a nascent community-based system. Critics argue this rollback would be logistically challenging and politically divisive, especially if Merz’s coalition includes parties like the Greens or Social Democrats, who favor maintaining or expanding legalization.

The medical cannabis sector, reclassified in 2024 to ease access, seems less threatened, as it aligns with Merz’s pragmatic economic instincts. Yet, the recreational landscape hangs in the balance, with Merz’s tenure likely to test Germany’s appetite for progressive drug policy against a resurgent conservative tide.

📈 Dog Walkers.

Michigan Spreads The Wealth

Michigan’s marijuana market is firing on all cylinders, pumping nearly $100 million in tax revenue straight into the coffers of 302 cities and tribes. In a true “high-yield” investment, the state’s adult-use cannabis boom delivered a record-breaking $10 billion in sales last year, ensuring roads get paved, schools stay funded, and local governments keep the lights on. With cannabis taxes now outpacing alcohol revenue, Michigan is proving that green isn’t just a plant—it’s a financial powerhouse. As municipalities cash in on their cannabis dividends, policymakers may soon realize that prohibition wasn’t just a buzzkill, but a costly economic misstep.

Jushi Gets Unorthodox

Jushi Holdings just pulled a classic finance move—why wait for $6 million from the IRS when you can take $5.1 million today? Opting for liquidity over patience, the cannabis MSO effectively “factored” its Employee Retention Credit (ERC) claims, trading potential gains for immediate cash flow. Given the IRS’s glacial payout pace—thanks to a backlog and fraud concerns—this was a strategic call. With the ERC window closing soon, cannabis companies still sitting on claims should take note: waiting on the IRS is like holding an illiquid asset—sometimes, cash in hand is worth more than theoretical returns down the road.

🗞️ The News

Cannabis MSO Jushi benefiting from little-used IRS tax-credit program

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Women tear down the walls of Ohio’s cannabis industry

Hemp Haven owner decries shifting Georgia cannabis regulations

📺 YouTube

Trump’s Pardon Czar Leads Biggest Developments in Cannabis This Week | Trade to Black

What we covered:

✅ On the latest Trade to Black podcast, host Shadd Dales dives into the biggest developments in the cannabis industry for the week of February 17th.

Leading the weekly recap is Donald Trump’s surprising appointment of Alice Marie Johnson as the nation’s new Pardon Czar. Johnson, a former nonviolent drug offender pardoned by Trump, is now in charge of clemency decisions—a move that could impact cannabis-related convictions nationwide.

On the business side, Grown Rogue’s (OTC: GRUSF) rapid expansion into New Jersey, bolstering its market presence with new dispensary partnerships.

Meanwhile, Aurora Cannabis (NASDAQ: ACB) is making waves down under, launching medical cannabis pastilles to meet growing demand in Australia.