Shares of German cannabis companies rise after approval of legalization
Tech investor Christian Angermayer owns 45% of SynBiotic

Shares in German cannabis company SynBiotic rose sharply Thursday, shortly after the new government promised to legalize the drug.
The shares of the Munich-based company rose 33% to 29 euros ($ 33) on the Frankfurt Stock Exchange. The company now has a market capitalization of over 100 million euros.
The center-left party of the Social Democrats, the Greens and the Free Democratic Party agreed on Wednesday to rule together in a three-party coalition for the first time. The so-called "traffic light" coalition agreed on plans to legalize the sale of recreational cannabis to adults in licensed stores.
SynBiotic, headed by Lars Muller, aims to use cannabis preparations to treat diseases such as chronic pain, stress and sleep problems. Cannabis has a number of negative side effects depending on the strength, frequency of ingestion, and the person.
Tech investor Christian Angermayer emailed CNBC on Thursday that he owns 45% of SynBiotic's shares.
"The biggest beneficiary [of German cannabis legalization] is my cannabis platform company SynBiotic, the only German cannabis company listed on the stock exchange - and one of the largest ever," said Angermayer.
Angermayer has invested in a company called ATAI that is trying to develop drugs that can be used to treat mental illness. ATAI's shares rose 40% on their Wall Street debut in June but have halved since then.
Alexander Galitsa, analyst at the investment bank Hauck und Aufhauser, wrote in a message to his customers on Thursday that the German cannabis market will experience "explosive growth" in the coming years.
Galitsa pointed to studies suggesting that legalizing cannabis could generate between € 3.4 billion and € 4.7 billion in annual tax revenues while creating an estimated 27,000 new jobs.
"This is of course excellent news for SynBiotic, which already has a strong position in the European cannabinoid market, and particularly in Germany," he said.
"Thanks to its first mover advantage in Germany and broad coverage of the value chain, SynBiotic is ideally positioned to benefit from the regulatory changes and to establish itself as the European market leader," added Galitsa.
Recreational cannabis use in Canada was legalized in late 2018 and annual sales have already exceeded € 2 billion, Galitsa said, before adding that there are significantly fewer people living in Canada.




