Cannabis Weekly Round-Up: Cannabis Bill Moves Forward in Mexico
Cannabis policy secured a victory this past week as Mexico’s legalization plans moved forward thanks to a critical Congress vote.
Additionally, the industry saw the confirmation of another partnership between a Canadian producer and a consumer packaged goods (CPG) firm.
Keep reading to find out more cannabis highlights from the past five days.
Mexico’s cannabis strategy has backing of president
On Wednesday (March 10), Mexican Congress voted 316 in favor to 127 against for the passing of a bill to decriminalize cannabis for recreational, medical and scientific purposes.
“With this, the false belief that cannabis forms part of Mexico’s serious health problems is left behind,” sitting lawmaker Simey Olvera, a member of President Andres Manuel Lopez Obrador’s Morena party, said during the session, according to a Reuters report.
The bill will now move on to the Senate which, like Congress, is held by a Morena majority — this seems to point to a victory for the cannabis policy.
“North America is heading toward legalization,” John Walsh, director of drug policy for the Washington Office on Latin America, told the New York Times. The expert said this is an “enormously significant” step for Mexico, given the country’s reputation as being severely affected by the war on drugs.
Canadian producer locks down tobacco giant relationship
New Brunswick-based licensed producer Organigram Holdings (NASDAQ:OGI,TSX:OGI) has closed on a new business partnership with British American Tobacco (BAT) (NYSE:BTI,LSE:BATS).
The deal represents a landmark partnership for Organigram, but it isn’t the first of its kind in the Canadian cannabis sector, as other alcohol makers and tobacco firms have entered the space as well.
As part of the agreement, the cannabis producer will receive a C$221 million strategic investment from BAT in exchange for a 20 percent stake in the company.
“This collaboration is the culmination of extensive discussions and workshops and in-depth due diligence,” Organigram CEO Greg Engel said in a statement.
In highlighting the effects of the new business partnership, Organigram told investors the deal will accelerate its product development model and advance its US market strategy options. “With the significant capital injection, Organigram is even better positioned to expand into the U.S. and further international markets at the appropriate time and subject to applicable law,” the firm said.
For its part, BAT told its investors that the deal will aid in the pursuit of the company’s “beyond nicotine” portfolio diversification. “This collaboration aligns with our long-term strategy, and will enable us to work with Organigram at an R&D level, as well contributing to their wider operations,” said BAT’s director of scientific research, Dr. David O’Reilly.
Cannabis company news
- Curaleaf Holdings (CSE:CURA,OTCQX:CURLF) issued a financial report for its fourth fiscal quarter of 2020 and its full 2020 fiscal year. The multi-state operator reported total revenue of US$230.3 million for the quarter and a 184 percent year-over-year uptick in annual total revenue, resulting in US$626.6 million. It still reported a net loss of US$35.3 million for the reporting period, leading to a total yearly net loss of US$61.7 million, down from the previous year.
- Subversive Acquisition TSX:SVX.U,NEO:SVX.U,OTCQX:SBVRF) confirmed the authorization of a receipt order to move ahead with a special resolution relating to a proposed plan of arrangement. The company is asking shareholders for an extension on its deadline to conduct a qualifying transaction, until August 31, 2021.
- Cannara Biotech (CSE:LOVE,OTCQB:LOVFF) told investors it has secured conditional approval to list its shares on the TSX Venture Exchange. In a statement, Zohar Krivorot, president and CEO of Cannara, said the approval “will provide our business with greater market visibility and enhanced liquidity for our shareholders as we look ahead to a year of significant growth.”
- VIVO Cannabis (TSX:VIVO,OTCQX:VVCIF) informed the market that its Vanluven facility in Ontario has secured European Union Good Manufacturing Practices (EU-GMP) certification, granting the company the option to pursue business opportunities in the European cannabis market.
“It will allow us to start to provide patients, physicians and pharmacists with high quality medical cannabis flowers in Germany, the rest of Europe and beyond,” said Andreas Sander, VIVO’s president of European operations.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.