BofA says Mexico cannabis legalization 'still in play' in 2020 after extension - InvestingChannel

BofA says Mexico cannabis legalization ‘still in play’ in 2020 after extension

BofA Merrill Lynch analyst Christopher Carey noted that Mexico’s Supreme Court has granted an extension until April 30, 2020 for Congress to legalize all forms of cannabis, writing in its decision that considering the complexity of the issue it grants the extension “exceptionally and for one time only.” He views this as an important development for the industry since, in addition to opening a potentially large market, it will put even more pressure on U.S. federal action as the country will potentially “place the US between 2 of only 3 countries in the world to have legalized cannabis for recreational use.” 9% of Mexico’s population of 131M is estimated to have consumed cannabis in 2018 and the legal market could be worth $1B by 2024, according to BDS Analytics, noted Carey. Publicly traded companies in the cannabis space include Aphria (APHA), Aurora Cannabis (ACB), CV Sciences (CVSI), CannTrust Holdings (CNTTF), Canopy Growth (CGC), Cronos Group (CRON), General Cannabis (CANN), India Globalization Capital (IGC), Tilray (TLRY) and Trulieve Cannabis (TCNNF).