Earlier this month, Mexico’s push to legalize recreational cannabis was halted after Senate Majority Leader Ricardo Monreal said that is attempting to extend the Supreme Court’s deadline to change the current law.
This development was not well received by the market as Mexico was on the verge of becoming the third country to legalize recreational cannabis. So far this year, we have seen a spike in the number of viewers that are closely following the Mexican cannabis market, and this is an opportunity that we have been bullish on.
Large-scale Canadian Licensed Producers (LPs) such as Canopy Growth Corporation (WEED.TO) (CGC) and Aurora Cannabis Inc. (ACB.TO) (ACB) claim to be levered the Mexican cannabis market and we will monitor how the industry advances from here.
Khiron Life Sciences (KHRN.V) (KHRNF) is another cannabis operator that is focused on the Mexican cannabis market. Mexico’s former President Vicente Fox is a member of Khiron’s Board of Directors and we expect his involvement to help the company capitalize on the cannabis market (when legislation permits).
Currently, Mexico’s revised cannabis proposal is under consideration and there is uncertainty about when the legislation will be voted on again. Senate Majority Leader Monreal said he wants politicians to debate the topic in the legislative session that will start in September.
He and other high-ranking members have voiced concerns about changes to the legislation. Some of the issues include the regulatory body that will oversee the sector, permits for individuals that are growing cannabis for personal use, businesses’ ability to request multiple licenses, the lack of clarity around the advantages that are provided to small-scale farmers, and research opportunities for hemp.
For years, Mexican lawmakers have been arguing over the legal cannabis since the Supreme Court declared the current ban unconstitutional in 2018. In late 2020, the Senate approved a previous version of the bill, which would legalize the use, sale, and production of cannabis. We believe the topic of legal cannabis in Mexico will be discussed later this year and hope that lawmakers can pass legal cannabis legislation.
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