Many big companies invested in legal marijuana are thinking about risking doing work with Mexico following a Supreme Court decision that made legalization possible for the country that has been experiencing years of intense drug violence. From medical cannabis cultivators to marijuana private equity firms, many cannabis entrepreneurs see Mexico as an excellent new opportunity although marijuana is still illegal, and the market is run by brutal drug cartels.
“Me personally, I’m not afraid to go to Mexico,” Daniel Sparks, head of government affairs at BioTrackTHC, a U.S.-based provider of marijuana supply-chain software, stated.
He added that just like how mafias and bootleggers stopped selling illegal moonshine after Prohibition ended in the United States, Mexico’s cartels will have little to no interest in a legal cannabis market, particularly if it was compiled of reliable pharmaceutical and technological firms.
“I am not so optimistic to think that a cannabis business in Mexico would not encounter opposition or violence from the cartels. However, their profit margins are being eroded daily, monthly and yearly by the continued expansion of medical and recreational marijuana programs in more and more U.S. states.”
Justin Trudeau, Canada’s new prime minister, has agreed to make the plant legal, and a Supreme Court decision during the end of 2015 gave Mexico the opportunity to one day do the same, allowing the ruling party to draft a bill to regulate medical pot.
“It shows North America … is moving in the same direction, and that’s more than just symbolic: it’s indicative of what will happen at a global scale,” Brendan Kennedy, chief executive of pot private equity firm Privateer Holdings, reported. “Mexico is an interesting investment opportunity.”
His firm has found that legal medical and recreational marijuana in Mexico could generate over $1.7 billion in revenue annually.