KHRN and TGOD to benefit from Mexican court ruling on marijuana
The Supreme Court of Mexico has found an absolute ban on the recreational use of marijuana is unconstitutional. Under Mexican law, the Supreme Court must rule five times on the same question before a ruling becomes finding. This was the fifth ruling and lawmakers must now proceed to regulate the marijuana industry. We reported earlier that former Mexican President Vicente Fox expressed the opinion that his country would legalize marijuana but we’re not sure anyone believed it. Obviously, Fox knew what he was talking about.
It will still take time for the wheels of Government to turn in Mexico but President Elect Andres Manuel Lopez Obrador will take office on December 1 and with a pro-cannabis Congress, Mexico should pass recreational marijuana without delay.
One of our favorites, Khiron Life Sciences (TSXV: KHRN) is a beneficiary. They are well established in Latin America and former President of Mexico Vicente Fox is on their Board of Directors. So expect to see KHRN participating in cannabis in Mexico. If Mexico and Chile are going to be the drivers of cannabis growth in Latin America, KHRN is the way to go. The Green Organic Dutchman (TSE: TGOD) is in a strategic joint venture with LLACA Grupo Empresarial, a major distribution company in Mexico, to create a company to enter the medicinal cannabis market in Mexico. We believe TGOD will be an early beneficiary in Mexico.
In addition to Khiron and TGOD, other public cannabis companies with exposure in Mexico include ICC Labs (TSXV: ICC) which is being acquired by Aurora Cannabis (NYSE: ACB) and Medical Marijuana (USOTC: MJNA).