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This year has been incredible for the marijuana industry. Long considered a taboo subject, we have not missed any "marijuana novelties" in 2018. Up until this year:
- Vermont has become the first state to legalize cannabis for recreational purposes entirely through the legislative process.
- The US Food and Drug Administration has approved its first-ever cannabis-derived drug, excluding synthetic drugs.
- At least five marijuana stocks are moving from the over-the-counter market to more well-known US markets, such as the NYSE and the US. Nasdaq.
- Tilray became the first major Canadian producer to launch the first public offering via a major stock exchange (the Nasdaq).
- A record percentage of Americans (66%) want marijuana to be legalized, by gallup.
- Canada has legalized marijuana for recreational purposes after nine decades of prohibition.
Source of the image: Getty Images.
Is the big year of the cannabis industry on the brink of improvement?
It's this last game changer that really turned heads. Although Canada faces supply shortages and delays in licensing from Health Canada, the industry should be able to add $ 5 billion in additional annual once fully operational.
The legalization of Canada has also put additional pressure on the US federal government to consider changing positions. Although 30 states have extensive medical cannabis laws and nine of them also allow the use of weeds for recreational purposes, the federal government has steadfastly maintained marijuana as a prescription drug. Appendix I. This means that it is totally illegal, subject to abuse and that it has no recognized medical benefits.
At present, the US federal government may be faced with a new source of pressure to legalize its other neighbor, Mexico.
Source of the image: Getty Images.
The other neighbor of America may soon legalize the recreational pot
As reported by the Associated Press earlier this week, the Mexican Supreme Court has issued two further rulings that the country's ban on recreational marijuana is unconstitutional. According to the AP, "adults have a fundamental right to personal fulfillment that allows them to decide their recreational activities without interference from the state".
To be perfectly clear, this does not mean that marijuana for recreational purposes is legal in Mexico. However, he is preparing the ground to fight against his illegality in the Mexican federal courts and goes so far as to suggest that a blanket prohibition is not lawful. You see, under Mexican law, if the Supreme Court makes five similar decisions on an issue – and since 2015, it has ruled five times that the imposition of a marijuana ban for recreational purposes is unconstitutional – the standard set by the court is applied throughout the country.
What's next, you ask? While it is impossible to know with certainty, the court's decision may encourage legislators to modify the legislation in force in the country to permit the legal consumption and / or sale of weeds for recreational purposes. The collaborators of President-elect Andres Manuel Lopez Obrador suggested that legalization was not out of the question. If you remember, Mexico has legalized cannabis for medical purposes during the summer of 2017, so that it would not be so difficult to advance on a custom pot bill. adult.
If Canada were to legalize weeds for adults, it would certainly encourage many major Canadian players to consider Mexico as an expanding region. The country's cartel activity complicates things a bit, but it would nonetheless represent an expansion of the market potential for cannabis in North America.
Source of the image: Getty Images.
These pot stocks should be very excited about this development
Since we do not know for sure what will happen in Mexico, trying to determine the size of its potential market is a bit of a mistake. Nevertheless, two stocks of marijuana could have immediate benefits if Mexico goes green.
The most logical beneficiary would be the small-cap penny stock Medical Marijuana, Inc. (NASDAQOTH: MJNA). Medical Marijuana is a company that mainly sells products based on hemp oil and cannabidiol, with subsidiaries in several countries of the world, including Mexico, via HempMeds. When Mexico legalized medical cannabis last June, it allowed Medical Marijuana, Inc. to experience a surge in demand. If Mexico lifted the curtain on the prohibition of recreation, it would certainly expand society's pool of patients, at least with respect to alternative consumption options in search of thirst. Medical Marijuana, Inc., which already has record sales months, would be eager to see Mexico legalize the recreational pot.
The other pot stock that would be delighted with a Mexican legalization would be KushCo Holdings (NASDAQOTH: KSHB). KushCo is probably best known for its packaging and branding solutions for cannabis producers around the world. The California company would almost certainly see an increase in business as it works with Mexican companies to stay in compliance with its 31 states. It is possible that KushCo can also see the benefits of increased use of alternative consumption. Through the acquisition of Summit Innovations, KushCo has access to the production of hydrocarbon gases and solvents, used respectively for the manufacture of sunflower oil and concentrates.
Long story short, do not neglect Mexico in the coming months.
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