With the recent change to Mexico’s government, is it time to invest in Mexican weed? If you’re a consumer or advocate of cannabis, you should know that Andrés Manuel López Obrador, the leftist candidate from Tepetitán, has been elected to be the new president of Mexico. And this guy has some pretty good ideas in terms of ending the war on drugs.
Although somewhat controversial, Obrador said that Mexico should stop trying to fight the narcos entirely in an effort to ensure peace in Mexico. He’s even looking to provide amnesty for those who have been growing drug crops.
To bolster his efforts, Obrador’s choice for interior secretary recently told reporters that part of her involvement in the new government would be to offer a proposal to end the prohibition of cannabis. She does seem quite focused on ending the war on drugs.
You can get a better sense of this in a recent op-ed she published in Milenio, where she wrote:
“The war on drugs has failed. I do not share simplistic or totalitarian solutions, such as “a drug-free world.” We must be willing to discuss–openly–the need to carry out multilateral institutional actions on an international scale.”
“The birth of new Mexican drug cartels and the magnitude of their expansion on a national scale has left a trail of blood and pain in our country; The figure of dead and missing–which are frightening–directly or collaterally, have been (for more than 20 years) the failure of the anti-crime policy. The debate between justice, health and the drug trade has never been led by the Mexican State; it has only been criminalized and fought with the hardening of sanctions, bringing mourning to thousands of families, both of the federal forces and of those who have mistaken the way to commit a crime.”
And if that’s not enough to get you all giddy, on July 4, the Second Chamber of Mexico’s Supreme Court approved a project that will look to establish a system whereby cannabis seeds can be acquired, legally.
It may not seem like a big deal to some, but when it comes to legalization, even baby steps are important. But couple those baby steps with a new pro-legalization government, and you have makings of some real, positive change.
Certainly, those who champion social responsibility should applaud any efforts to end the war on drugs. And for those who are cannabis investors, this also offers an excellent time to seek out new opportunities that could allow for the ability to profit from any new legalization measures in Mexico.
A Close Eye On Mexico
Truth be told, cannabis investment opportunities in Mexico aren’t quite as abundant as you’d find in Canada or the U.S. However, there are still a few ways to invest in Mexican weed.
There is Khiron Life Sciences (TSX-V: KHRN), which recently announced it was launching a Mexican subsidiary. And of course, through its HempMeds brands, Medical Marijuana, Inc. (OTCBB: MJNA) already has exposure to the Mexican cannabis market.
To be clear, these are not recommendations to buy these stocks just because they could give you exposure to Mexico. But it is worth knowing the names of a couple of the companies that are seeking to profit from legalization in Mexico.
And of course, if legalization does start panning out, don’t be surprised to see some of the bigger players, like Canopy Growth Corporation (TSX: WEED), Aphria (TSX: APH) and the Green Organic Dutchman (TSX: TGOD) looking to use their size, power and deep pockets to get an early piece of this market.
Should You Invest In Mexican Weed?
Now it’s still hard to know exactly how this is all going to roll out. Or even if it will. After all, it wouldn’t be unheard of for a politician to go back on his or her word. But with the rapid expansion of the global cannabis market and the reality that legalization could offer a respite to all the violence that the good people of Mexico deal with on a daily basis, it would be foolish not to keep a close eye on the market for opportunities to invest in Mexican weed.