Marijuana, the smooth stock market journey
Mexico has great potential to enter the marijuana market. In spite of being one of the main producers of this herb in the world, its horizons have been limited for more than 20 years because it cannot be legalized in the country.
Globally, the preference for this psychotropic plant has been increasing, as more than 190 million people currently consume it. In 2021, the legal market for this herb could reach 31 billion dollars a year, a figure that would turn this market into an important investment pole for any country that decides to enter it, according to one of the annual reports of the United Nations Office on Drugs.
In the Mexican territory, the future of marijuana is promising, if regulated a potential market of five billion dollars a year would be created, equivalent to 100 billion pesos, which, among other things, could be used to lift millions of Mexicans out of poverty, according to information from the Cannabis Industry (Anicann).
For the Mexican government, the legal use of cannabis is the subject of debate and controversy.
After nearly 20 years of demonstrations by a segment of Mexican society to legalize, the only progress that has been made is the authorization to use it in some cases for medicinal purposes.
In the next 10 years, medicinal marijuana could reach a potential value of two billion pesos, according to estimates by KPMG Mexico.
Producing, buying and consuming marijuana in the country became more tangible after President Andrés Manuel López Obrador (AMLO), at the beginning of his six-year term, presented a bill in the Senate to regulate the different uses of this plant.
Key aspects of this bill included the regulation of consumption, marketing, production and use of marijuana derivatives for medicinal purposes, and will also focus on mitigating the violence generated by organized crime.
Although the Cannabis Regulation Bill was only one step away from approval in October, the Senate asked the Supreme Court of Justice of the Nation (SCJN) for an extension until April next year to definitively set the course for the plant.
Mariana Sevilla, a member of the RIA Institute, comments that the obstacles they are putting in the way of the approval of this law have to do with a lack of political will on the part of both the SCJN and the Legislative Power. Moreover, in the last document presented by the United Commissions of the Senate, it does not satisfy anyone's needs and only benefits certain social sectors.
There is a lack of knowledge of the plant because they are not giving it the importance it deserves. Let's hope we have news before the end of this year so that once the other begins it will be sent with and can be taken into account for the calculation of the next budget. - Mariana Sevilla
INTERNATIONAL MARIJUANA BUSINESS
The marijuana business is growing by leaps and bounds in the world, so much so that large companies from countries such as the United States, Canada, and the United Kingdom have entered the Stock Exchange.
Companies dedicated to the cultivation, development, as well as a supply of medicinal and recreational marijuana, have placed shares in the Exchange to expand their businesses and so that investors can benefit from the profits obtained from this resource.
There are a variety of companies specializing in different kinds of products. The three main categories of marijuana stocks are related to producers, biotechnology and suppliers.
Currently, among the best companies to invest in marijuana are Canopy Growth; Cronos Group; Aurora Cannabis; Tilray; Hexo Corp, and Kush Bottles.
Aldo Contró López, member of the Mexican Cannabis Movement, assures that Mexico has a marijuana production of many years, even more than the United States and Uruguay where this plant is already regulated, however, he comments that this type of market is far from being carried out in the country, due to the treaties that exist with various countries.
"In matters of cultivation, Mexico is a power that could clearly exploit, but the market is not a possibility because regulating it would be impeded by all the countries that are signatories of the international treaties on drugs. International commitments prevent states from regulating the market, countries that already have legalized some are violating these commitments.
Source: Reporte Indigo
HOW THE MARIJUANA MARKET MOVES IN OTHER COUNTRIES IN THE REGION
Uruguay, Chile, and Colombia already have investments from multinationals from Canada and the United States, while in Peru they are waiting for the regulation of medicinal cannabis
The progressive legalization of medical marijuana in the countries of Latin America and the Caribbean has created a market whose potential begins to attract investments from Canada and the United States.
In Peru, the medicinal use of medicinal cannabis and its derivatives was approved in 2017; However, to date, this law has not been regulated, so its application is still pending.
There are already international companies interested in entering Peru, as noted by the Canadian Canopy Growth, which already has offices in the country.
"The panorama for medical cannabis continues to evolve rapidly in Latin America and Peru is about to take a leading role with the introduction of new regulations that we hope will prioritize patient access," said Antonio Droghetti, CEO of Canopy LATAM, it's a statement.
In other countries of the region, however, the advance of the cannabis market already adds investments in production plants and acquisitions of local companies with authorization to market products made from medical marijuana.
In December 2013, Uruguay became the first country to regulate the medical marijuana market from its sow until its sale to the public.
Former, a company with Uruguayan and foreign capital that has been operating in the country since 2017, has already invested the US $ 7 million in laboratories and crops. In December 2018, ICCLabs, owned by the Canadian Aurora, opened a laboratory to produce hemp - a plant similar to marijuana - with an investment of US $ 12 million. The National Drug Secretariat of Colombia reported that another US company is being installed in the country, with an investment of more than US $ 40 million, explained El Nuevo Herald.
According to the same source, more than 20 companies are developing from medical marijuana. The Colombian government estimated months ago that the country would receive investments of US $ 120 million in this field.
In Chile, there are three international firms that offer medicinal cannabis products. In 2018 came the Canadian Canopy Growth, the largest traded marijuana company in the world, whose local investment totaled the US $ 10 million; then also the Canadian Tilray, who acquired the Chilean cannabis producer Alef Biotechnology. for the US $ 3.9 million.
This month, Khiron was the last to land in the country, associating with the holder of the first license for medicinal cannabis cultivation in the country (Dayacann) and the Daya Foundation, the main promoter of the use of cannabis-based treatments, according to La Tercera.
Since the end of 2015, the Chilean government authorized the preparation and sale of medicines based on marijuana.
The government of Colombia authorized the production and manufacturing of cannabis for medical purposes in 2016. At the end of 2018, more than 214 companies or persons licensed to produce medical marijuana were registered.
American and Canadian firms such as USA Real Estate Holding, Foods Organization and Khiron Life Sciences acquired eight businesses among projects, specialized clinics and firms established in Colombia.
According to El Tiempo, a study by ProColombia estimates that the country would reach markets in excess of US $ 43,000 million in 2025, due to the regulatory framework, competitive advantage, and its export potential. In addition, another study from the Universidad del Rosario says that in the future the medicinal cannabis market could contribute 0.4% of the Colombian GDP.
At the end of 2018, the Mexican government authorized the commercialization of the first products made from cannabis. In that same year, the Canadian Aurora Cannabis bought Farmacias Magistrales, the first Mexican company licensed to import medicinal products based on marijuana, says Expansión.
This acquisition, according to forecasts by Baker McKenzie, would be the beginning of a stage of transactions in the form of an association between foreign firms making deals with Mexicans. It is estimated that Mexico could reach, in a year, the same sales figure registered by Canada in five years, because it has twice the population and is one of the leading producers of marijuana in the world, after Morocco, according to United Nations data. United.
A report by Grand View Research estimates that the global market for legal marijuana could reach the US $ 146 billion by the year 2025, according to a report by Grand View Research.