Cannabis stock report: Pot stocks inch back up as news of legalization in Mexico riles investors
Cannabis stocks inched their way back to relevance on Wednesday as The North American Marijuana Index barely gained, jumping up 0.20 points to 106.90. IT was a mixed bag in the US and Canada, with The United States Marijuana Index climbing 0.02 points to 50.79 while The Canadian Marijuana Index dipped down 0.33 points to 189.61.
Meanwhile, the NASDAQ 293.87 points up to 11,141.56 for a gain of 2.71 percent while the NYSE jumped 197.73 points to 12,885.80 for an increase of 1.56 percent.
Cannabis investors had better luck on the international markets, where the news came down that Mexico would be legalizing cannabis. The country, which deemed anti-marijuana laws unconstitutional and unenforceable a few years back, has finally begun to move forward with legislation. After the original deadline to do so was extended because of COVID-19, lawmakers in Mexico finally came back into session on September 1. Reports say they have no interference coming from President Andrés Manuel López Obrador, meaning the country is free to move forward with its legalization efforts.
“Yes, they [the legislators] are going to decide freely, listening to the opinion of all the parties,” said Obrador, according to cannabis website The Bluntness. “There have already been consultations, and if they are going to decide on this matter, that is, there is going to be a legal reform.”
Sen. Julio Ramón Menchaca Salazar of the Morena party was reported to have said that there are some disagreements among lawmakers on the finer points of any potential legislation; however, in the end, the country needs the tax revenue to recover from the economic downturn caused by the coronavirus pandemic.
Key provisions in Mexico’s proposed legislation include the establishment of "The Mexican Institute of Regulation and Control of Cannabis" to regulate the industry & award licenses; adults 18+ could possess & cultivate marijuana for personal use and grow up to 20 registered plants; medical patients could apply for approval to legally grow more than 20 plants; personal possession would be capped at 28 grams, but possession of up to 200 grams would be decriminalized; cannabis sales would be taxed at 12 percent, with some proceeds going to substance abuse treatment funds; and public consumption would be permitted except in non-designated spaces.
Legislators do caution that they are still far apart on issues of social justice and equity. Motley Fool argues that Mexico could drive total global sales of cannabis to upwards of $104 billion within the next five years. Some economists predict that the country could bring in over $1.2 billion in annual tax revenue.
Cannabis stock winners and losers
Meta Growth Corp. (META:CA) climbed $0.015 per share up to $0.13 for a gain of 13.04 percent. C21 Investments Inc. (CXXIF) rose $0.03549 per share up to $0.6305 for an increase of 5.96 percent. Indus Holdings Inc. (INDXF) gained $0.07 per share, jumping up to $1.30 for an increase of 5.69 percent.
Green Growth Brands Inc. (GGBXF) fell $0.0029 per share down to $0.023 for a loss of 11.20 percent. Zenabis Global Inc. (ZENA:CA) decreased $0.01 per share down to $0.095 for a drop of 9.52 percent. cbdMD Inc. (YCBD) lost $0.17 per share down to $2.21 for a decrease of 7.14 percent.
Clint Eastwood is not selling your CBD
Mesa-based CBD manufacturer Patriot Supreme, owned and operated by disabled Air Force veteran Justin Elenburg goes all out on the patriotic motif in its advertisements according to a new article in The Phoenix New Times. The company uses flags, vets, and… Clint Eastwood?
According to the story, the Dirty Harry star who talked to an empty chair at the Republican National Convention a few years ago is suing Patriot Supreme for allegedly illegally using his likeness. The ads, under the headline "Big Pharma In Outrage Over Clint Eastwood’s CBD: Patriot Supreme CBD - He Fires Back With This!” offer some testimony as to why Eastwood allegedly loves CBD.
"We all know and love Clint Eastwood as the charismatic actor and director who has never been shy about advocating for marijuana use,” read one ad. “He has always been focused on making movies, going on tour, and promoting America. However, he shocked everyone when he announced his new CBD line, Patriot Supreme CBD, would be the next step in his career."
Eastwood’s suit argues the ads feature "photographs of Mr. Eastwood and references a fabricated interview with Mr. Eastwood in which he touts his purported line of CBD products. In truth, Mr. Eastwood has no connection of any kind whatsoever to any CBD products and never gave such an interview."
In other cannabis news…
Cresco Labs (CSE:CL) (OTCQX:CRLBF) launched a new cannabis brand called Good News. It includes pre-rolled shorties, disposable vape pens, and gummy edibles.
NJWeedman Ed Forchion is suing Gov. Phil Murphy. Forchion, who’s running for Congress under the Legalize Marijuana Party, alleges the state purposely left his party’s name off the ballot.
Voting to legalize marijuana is bad, writes Politico in an article that screams, “look at me, I need attention!”