During the last year, the global cannabis market has recorded significant advancements as new markets in the European Union (EU) and Latin America have started to gain traction. 

Mexico is a market that has been in focus and is an opportunity we are excited about. The country is working to pass recreational cannabis legislation and we expect a positive outcome to be a major catalyst for the entire sector. 

Over the weekend, we read a few articles that stated that the Mexican Senate is prepared to approve legislation to legalize cannabis after it was amended by the Chamber of Deputies earlier this month.

The comments come a few weeks after the Chamber of Deputies passed a legalization bill that had been revised since it was approved by the Senate in late 2020. We consider this to be an important development as it relates to the potential for the legislation to be passed quickly and will monitor how the Mexican market advances from here.  

Under the revised legislation, adults (18 and older) would be allowed to purchase and possess up to 28 grams of cannabis and cultivate up to six plants for personal use. The deputies made revisions to the regulatory structure, rules for the commercial market, licensing policies, and more. 

One of the most significant changes is that the revised bill would not establish a new independent regulatory body to oversee the licensing and implementation of the program. Instead, the amended legislation would give that authority to an existing agency. 

Although we are favorable on how the legislation is moving forward, the bill does not include everything that advocates had been pushing for. One of the examples of such changes is related to how people who want to cultivate their cannabis at home will have to register with the government for approval.

Companies like Canopy Growth Corporation (WEED.TO) (CGC), Aurora Cannabis Inc. (ACB.TO) (ACB), and Khiron Life Sciences Inc. (KHRN.V) (KHRNF), are highly focused on the Mexican cannabis market and we are closely following this market.