Canada stood at the center stage of investors’ attention for months during the lead-up to the country’s legalization of recreational marijuana in October. But now there are two emerging opportunities that could be much more significant over the long run.
In just the last few days, major developments have occurred in Mexico and Thailand that could potentially change the dynamics of the global cannabis industry. Leaders like Canopy Growth(NYSE:CGC), Tilray (NASDAQ:TLRY), and Aurora Cannabis (NYSE:ACB) just might be poised for additional growth sooner than expected. Here’s what you need to know about these two largely under-the-radar stories — and why they could be huge news for marijuana stocks…
Mexico’s monumental court decisions
Medical marijuana is already legal in Mexico. Arcview Market Research and BDS Analytics project that the country will become the fifth-largest international marijuana market in the world outside of the U.S. and Canada by 2022. Even then, though, total medical marijuana sales are estimated to be less than $100 million.
But the opportunity in Mexico could change as a result of recent decisions by the country’s Supreme Court. On Oct. 31, Mexico’s highest court issued two rulings that effectively overturned the country’s prohibition of recreational marijuana. The Mexican Supreme Court stated in a news release translated by drug policy think tank Transform that “the fundamental right to the free development of the personality allows the persons of legal age to decide — without any interference — what kind of recreational activities they wish to carry out and protect all the actions necessary to materialize that choice.”
Technically, recreational marijuana will remain illegal in Mexico for now. However, the country’s legislators have 90 days to revise Mexican law. There are two primary approaches that the Mexican Congress could take. It could opt to…
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