Mexican investors turn to the legal cannabis market
The cannabis industry continues to grow and in the United States its legalization for recreational use continues to increase and in Mexico, there are already some legal initiatives to make it legal. While the law is passed in our country, several Mexican investors show interest in the North American market for cannabis.
In the United States, medical cannabis is legal in almost all states, while its recreational use has already been legalized in eleven states. This has resulted in an outbreak of companies related to its commercialization.
But those who seek to invest in cannabis should know that getting involved in this market does not mean simply planting and cultivating the plant in the garden of your home, in addition, there is a risk of losing a good part of the investment, and with them the savings, if the company does not pay. One of the main fears is that most of the companies in this sector are tiny and have a price per share of less than a dollar. The volatility of these small companies is huge, there is almost no information available from companies and some are bought in unregulated markets.
Even so, global development has generated interest from investors in Mexico for participating in companies in this industry. However, according to information from the Bolsa Mexicana de Valores Group, there is no instrument in the International Quotation System, or Global Market, that is linked or that provides exposure to the medicinal or recreational cannabis industry.
For now, investments in this industry can be made through virtual brokerage companies that operate on the Internet with authorized licenses in the different countries where the instruments are listed. One of the options available in Mexico is Etoro, an Israeli digital brokerage house that has gone from the operation of traditional assets to some instruments such as commodities and cryptocurrencies.
Last year, the platform opened to its global investors access to instruments such as the "Cannabiscare" portfolio, the Horizons Marijuana Life ETF, of Horizons ETFs Management Canada, and the direct purchase of stations such as Aurora Cannabis, all related to the industry. of marijuana.
Each of these alternatives has a minimum investment required. To invest directly in a station that offers exposure to marijuana for medical use requires an investment of 2 thousand pesos, while for the ETF 10 thousand pesos are required, and for the portfolio 100 thousand pesos.
Another investment alternative is the opening of an account for foreign investors in the bank and brokerage firm Charles Schwab Corporation, which operates directly with customers, but it is necessary to fund the account with resources for 25 thousand dollars for an international account.
Mexican companies seek to create Chamber of the Cannabis Industry
Companies that produce and market medicines, cosmetics and food, among other products derived from marijuana, will form a Chamber of the Cannabis Industry in Mexico, in order to guarantee the free entry of these items into the country.
Raúl Elizondo, director of Hempsmeds for Mexico and Latin America, stressed that the scope of the office issued by the Ministry of Economy on cannabis import tariffs does not affect cannabis products.
At the end of last year, the Federal Commission for the Protection against Sanitary Risks (Cofepris) released around 60 permits to produce raw materials, food, beverages, food supplements, cosmetics and cannabis-based pharmaceuticals.
The cannabis industry continues to grow and in the United States its legalization for recreational use continues to increase and in Mexico, there are already some legal initiatives to make it legal.