The Mexican Senate is getting ready to argue a policy that would legalize cannabis in the country.
Thanks to the alignment of the justice, health and legislative studies commissions in the Mexican Senate, the policy was approved and now heads to the Senate, where it will be discussed and reviewed.
The ruling from the three divisions was approved with a final vote of 26 compared to seven against while eight abstained on Wednesday (March 4).
Luis Armendariz, a partner at CAAM Legal and a legal expert on the cannabis industry, told the Investing News Network (INN) that after an expected win for the bill at the next stage, it will take time for the industry to get going and for the creation of the agency tasked with regulating the market to be created.
In an email response, Armendariz said he expects once Mexican businesses begin to obtain licenses and settle in the market, partnerships with international partners will begin to take form.
“There are Mexican business owners looking for foreign partners to commercialize their already existing products with brands in countries like US and Canada,” Armendariz said.
▶️ #HoyEnElSenado las Comisiones Unidas de Justicia, de @salud_comision y de Estudios Legislativos Segunda aprobaron en lo general un dictamen que expide la Ley para la Regulación del #Cannabis, así como reformas a la Ley General de Salud y al Código Penal Federal. pic.twitter.com/9u7i9Zbksv
— Senado de México (@senadomexicano) March 4, 2020
According to a report from El Universal, the eventual law would set up an entirely new policy to oversee the industry along with changes in the General Law on Health and the Federal Penal Code.
This potential bill, as currently constructed, would allow people to possess up to 28 grams of cannabis and institute a 12 percent suggested tax on all products.
Despite the anticipation and cultural impact attached to the legalization effort, some business minds are not thrilled about the current path of reform in Mexico. Alfredo Alvarez, a business partner of Mexican-based Canncura, told Marijuana Business Daily the policy as it stands would cause overregulation for licenses and limit business integration.
Armendariz agrees with the sentiment that the current policy is too restrictive for businesses. However, he told INN this is still a massive step for the country and its relationship with the drug.
It’s been a long road for the country ever since the government of Mexican President Andres Manuel Lopez Obrador hinted at its interest in working out a cannabis policy.
The Mexican government is facing a deadline of April 30 for the legalization of the drug as part of a Supreme Court ruling in the country.
Armendariz told INN he is fully expecting the legalization process to be completed before the deadline given that in his opinion the biggest obstacle for the policy was guaranteeing an agreement between the political parties to put the bill forward for a vote. Given that the ruling party, MORENA, is also in control of the Chamber of Deputies, the expert doesn’t expect a problem with the passing of the motion.
However, despite the interest in the legalization process for the drug, Lopez Obrador threw a curveball at the entire path ahead for the drug after he claimed to support only medical use. A report from The Yucatan Times indicated as part of his daily press remarks, the Mexican president showed his disdain for recreational drug use with a video presentation.
Don’t forget to follow us @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Aion Therapeutic Inc. (CSE: AION) (” Aion Therapeutic ” or the ” Company “) today announced that it has retained KCSA Strategic Communications (” KCSA “), a leading New York City -based communications firm.
Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), today announced the closing of its previously announced marketed public offering of 5,000,000 subordinate voting shares in the United States and Canada (the “Offering”) at a public offering price of C$50.00 per share ( $39.63 per share after giving effect to the conversion rate published by Bloomberg at 4:30pm ET on April 7, 2021 to convert Canadian dollars to U.S. dollars). In connection with the closing of the Offering, the underwriters exercised in full their option to purchase an additional 750,000 subordinate voting shares. As a result, the gross proceeds from the Offering, before deducting underwriting discounts and commissions and offering expenses payable by Trulieve, were C$287.5 million (or $227.9 million after giving effect to the conversion rate denoted above).
The Offering was conducted through a syndicate of underwriters led by Canaccord Genuity, as sole book-running manager, and included Cormark Securities Inc., as co-lead manager, as well as ATB Capital Markets Inc., Echelon Wealth Partners Inc., Eight Capital and PI Financial Corp. All of the shares in the Offering were sold by Trulieve. Trulieve intends to use the net proceeds from the Offering primarily to fund Trulieve’s business development and for general working capital purposes.
Ayurcann Holdings Corp. ( CSE: AYUR ) (the “ Company ” or “ Ayurcann ”), is pleased to announce that the Company intends to complete a non-brokered private placement (the “Financing” ) of up to 2,645,503 units (the “Units” ) at a price of $0.189 per Unit. Each Unit will consist of one common share ( “Common Share” ) of the Company and one-half of a common share purchase warrant ( “Warrant” ), with each whole Warrant entitling the holder to acquire one additional Common Share at an exercise price of $0.38 per Common Share for a period of 36 months from the closing date ( “Closing Date” ) of the Financing, for gross proceeds of up to $500,000 .
The Company will have an option, prior to the closing date, to upsize the offering with the sale of an additional 25% of Units, accounting to aggregate proceeds of up to $625,000.
Lobe invites individual and institutional investors as well as advisors and analysts to attend its real-time, interactive presentation at the Emerging Growth Conference
Nextleaf Solutions Receives Amendment to Standard Processing Licence to Allow for Direct to Province Sales
Nextleaf Solutions Ltd. (CSE: OILS) (OTCQB: OILFF) (FSE: L0MA) (“Nextleaf”, “OILS”, or the “Company”), the world’s most innovative cannabis processor, is pleased to announce that its wholly-owned subsidiary, Nextleaf Labs Ltd. (“Nextleaf Labs”), has received an amendment to its existing Standard Cannabis Processing Licence from Health Canada (the “Amendment” or the “Amended Licence”) that authorizes the sale of cannabis extracts, edibles, and topical products, directly to provincially-authorized distributors and retailers across Canada.