Big News for Marijuana Stocks: Mexico Is on the Verge of Legalizing Medical Cannabis Sean Williams - The Motely Fool
go to original May 5, 2017

Mexico's lower house overwhelmingly passed a bill that would legalize the medical and scientific uses of weed. (Getty Images)

The marijuana industry and marijuana stocks have had practically unstoppable momentum over the past couple of years. Well, folks, things are about to get even rosier - or perhaps we should say greener.

As reported last week, the lower house of Mexico's Congress overwhelmingly passed a bill that would legalize cannabis for medical and scientific uses. The measure gathered 371 votes in favor, just seven votes against, and 11 abstentions. The bill, which aims to classify the psychoactive component of cannabis tetrahydrocannabinol (THC) as a "therapeutic," was passed in Mexico's Senate this in December. The next step for the bill is to head to Mexican President Enrique Pena Nieto's desk, where it's fully expected to be signed into law.

Last year, Pena Nieto, who has been a supporter of the legalization and decriminalization effort, commented during a gathering of world leaders that the global strategy of fighting drug use needed revisiting. He's also gone on record as suggesting that the U.S. and Mexico must be on the same page when it comes to marijuana policies.

This is big news for marijuana stocks, even if Mexico's black market is massive as a result of its drug cartels. Legalizing medical weed would give pot-based businesses yet another avenue to legally sell their product beyond Canada and the 28 U.S. states that have legalized physicians to prescribe the drug.

According to Stuart Titus, the CEO of Medical Marijuana, Inc (NASDAQOTH:MJNA), a Southern California-based provider of industrial hemp products, legalizing medical marijuana in Mexico represents a "$1 billion to $2 billion opportunity" in cumulative revenue over the next decade, according to an interview with Fortune.

Of course, Medical Marijuana is no stranger to operating in Mexico. HempMeds Mexico, which is Medical Marijuana's distribution branch in the country, was the first company to be allowed to import cannabis products into Mexico (non-psychoactive cannabidiol products, not THC). The bill currently working its way through Mexico's legislative branches will merely make the infrastructure Medical Marijuana has laid in Mexico all the more effective -- and potentially profitable.

Mexico's medical marijuana legalization efforts also come shortly after Prime Minister Justin Trudeau of Canada introduced a bill to legalize recreational weed. The demand for legal pot, be it medical or recreational, is exploding right before investors' eyes, and producers with the capacity to expand their operations could benefit in a big way.

Read the rest at The Motely Fool

Related: Watch This Penny Stock as Mexico Approves Medical Marijuana (Hacked)

Related: President Vicente Fox Announced as Keynote Speaker for NCIA's Cannabis Business Summit & Expo (PRNewswire)

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