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America's neighbor can soon legalize Marijuana. No, the other – The Motley Fool



This has proved to be an amazing year for the marijuana industry. By far as a taboo subject, we have not observed a lack of "marijuana firsts" in 2018. So far this year:

  • Vermont became the first state to legalize recreational cannabis throughout the legislative process.
  • The US Food and Drug Administration approved its first cannabis-derived drug, not including synthetic drugs.
  • At least five jar containers are resolving from over-the-counter exchanges to more reputable US stock exchanges, such as NYSE and Nasdaq .
  • Tilray became the first major Canadian manufacturer to go the first public offering route through a major stock exchange (Nasdaq).
  • A record share of Americans (66%) will see marijuana legalized, per Gallup.
  • Canada legalized leisure marijuana after nine decades of prohibition.
  Clear jars filled with trimmed cannabis on a counter.

Image Source: Getty Images.

Is the cannabis industry's big year getting even better?

It's this latest game changer that's really turned on your head. Although Canada has handled supply shortages and licensing delays from Health Canada, the industry should be able to reach $ 5 billion or more in increased annual revenue once up to speed.

Canada's legalization has also put additional pressure on the US federal government to consider changing its melody on the pot. Despite the fact that 30 states have passed broad sweeping medical cannabis laws, and nine of these states also allow the use of recreational grasses, the federal government has held marijuana as a Schedule I substance. This means that it is completely illegal, susceptible to abuse, and has no recognized medical benefits.

Now the US federal government can meet a new source of legalization from its neighbor, Mexico.

  A judge's gavel next to dried cannabis buds.

Image source: Getty Images.

America's second neighbor can soon legalize the recreation pool

As reported by the Associated Press earlier this week, the Mexico Supreme Court made two other decisions that the country's ban on leisure marijuana is constitutional. According to AP, "adults have a fundamental right to personal development that allows them to decide their leisure activities without disturbances from the state."

To be crystal clear, it does not mean that recreational marijuana is legal in Mexico. But it provides the basis for combating its illegality in Mexican federal courts, and goes so far as to propose that a blanket ban is not legal. You see under Mexican law about the Supreme Court when five similar decisions about a problem ̵

1; and since 2015 five times reiterated that the introduction of a ban on recreational marijuana is constitutional – the standard of the court is being used throughout the country.

What's next you ask? Although it is impossible to know with certainty, the court decision may encourage legislators to amend the country's existing law to permit legal recruitment of weeds and / or sales. President-elected Andres Manuel Lopez Obrador's employees have suggested that legalization is not out of the question. If you remember Mexico allowed medical cannabis during the summer of 2017 so there would not be much to go with an adult user box.

Was Canada to promise adultery, it would certainly encourage many of the major Canadian actors to consider looking at Mexico as an area of ​​expansion. The country's cartel activity complicates things a bit, but it will nevertheless constitute an expansion of the market potential for North American cannabis.

  A tipping lid with cannabis lies on top of a small pile of cash.

Image Source Getty Images.

These pot stocks should be very excited about this development.

Since we do not know what will happen in Mexico with some certainty, it's a bit of a crapshoot to try to find its potential market size. Nevertheless, there are two marijuana stocks that can see immediate benefits if Mexico went green.

The most logical beneficiary would be a small-pension-proof stock Medical Marijuana, Inc. (NASDAQOTH: MJNA) . Medical Marijuana is a company that mainly sells cannabidiol and hemp oil products, with subsidiaries in a number of countries worldwide, including Mexico via HempMeds. When Mexico legalized medical cannabis in June last year, it opened the door to Medical Marijuana, Inc. to see a nice blow in demand. Should Mexico lift the curtain on a recreational ban, it would certainly expand the company's patient pool, at least with regard to those who want alternative consumer options. Medical Marijuana, Inc. will already be keen to see Mexico-legitimize the recreational pool.

The second pottery who was excited about Mexican legalization would be KushCo Holdings (NASDAQOTH: KSHB) . KushCo is probably best known for offering packaging and branding solutions for cannabis growers worldwide. The California-based company would almost certainly see an increase in business as it works with Mexican companies to remain compatible with its 31 states. It is possible that KushCo could also see benefits from increased alternative consumer spending. Through the acquisition of Summit Innovations, KushCo has access to hydrocarbon gas and solvent production, which is used to make cannabis oil and concentrates.

Long story short, do not overlook Mexico in the coming months.


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