Mexico Calls Ban On Recreational Cannabis Unconstitutional: Which Companies Stand To Benefit?

While Mexico began Día de Muertos celebrations, the country's Supreme Court offered a gift of epic proportions. The court ruled an absolute ban on the adult use of cannabis is unconstitutional.

This doesn’t mean cannabis users south of the border can start lighting up in the streets today. But it does mean lawmakers will now be charged with the responsibility of regulating the consumption of the plant. And make no mistake: it's a huge victory for legalization advocates and investors looking to get an early lead in the race to legalize cannabis in Mexico.

Stocks To Capitalize On Mexican Legalization

Khiron

One company that’s been strategic about entering the Mexico market is Khiron Life Sciences KHRNF.

The company recently started an education program by hosting and sponsoring the CannaMexico conference, which former Mexico president Vincente Fox has championed. Not coincidentally, Fox sits on the board of Khiron.

While Khiron is known for its core operations in Colombia, the company is actively seeking to expand throughout Latin America. With the former president of Mexico in its corner, Khiron has a distinct advantage. It also doesn’t hurt that Mexico's new president Andrés Manuel López Obrador is also in favor of legalization.

TGOD

Last month, The Green Organic Dutchman TGODF announced its entry into a strategic joint venture with LLACA Grupo Empresarial to create a company to enter the medicinal cannabis market in Mexico.

LLACA is a distribution company with access to distributors with commercialized pharmaceutical and OTC products. Their reach includes 4,500 pharmacies and 3,100 supermarkets throughout Mexico.

The deal allows TGOD full access to LLACA’s services, which, in addition to distribution, include warehousing, product registrations, regulatory representation and authorized clinical trials.

Others

In addition to Khiron and TGOD, other public cannabis companies with exposure to Mexico include ICC Labs ICCLF — which is soon to be acquired by Aurora Cannabis Inc ACB — and Medical Marijuana, Inc. MJNA.

The bottom line is that the Latin American cannabis industry is projected to be worth nearly $13 billion in less than 10 years, with Chile and Mexico expected to be the engines of growth in the medical cannabis sector, according to Prohibition Partners.

While cannabis investors have been focused on Canada, that focus is moving south to the U.S. and Mexico.

Make no mistake: a legal cannabis market in Mexico is going to occur, and it promises to be incredibly profitable for those who are positioned for the move.

Related Links:

3 Small Cannabis Companies To Keep An Eye On&

Molson Coors Expects To Launch Cannabis Beverage In 2019