Cannabis policy won last week as Mexico’s legalization plans were pushed forward thanks to a critical vote in Congress.
In addition, another partnership between a Canadian manufacturer and a consumer goods company (CPG) has been confirmed in the industry.
Read on to find out more about the cannabis highlights from the past five days.
Mexico’s cannabis strategy is supported by the president
On Wednesday (March 10), the Mexican Congress voted 316 against 127 against passing a law decriminalizing cannabis for recreational, medical and scientific purposes.
“That leaves the false belief that cannabis is part of Mexico’s serious health problems,” 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 is now being passed to the Senate, which, like Congress, is held by a Morena majority – this seems to indicate a victory for cannabis policy.
“North America is on the way to legalization,” John Walsh, director of drug policy for the Washington Bureau for Latin America, told the New York Times. The expert said this was an “enormously significant” step for Mexico as the country has a reputation for being hard hit by the war on drugs.
The Canadian producer completes the relationship between tobacco giants
New Brunswick-based licensed producer Organigram Holdings (NASDAQ:OGI, TSX: OGI) has a new business partnership with British American Tobacco (BAT) (NYSE:BTI, LSE: BATS).
The deal marks a landmark partnership for Organigram, but it isn’t the first of its kind in the Canadian cannabis sector as other alcohol manufacturers and tobacco companies have entered the room.
Under the agreement, the cannabis producer will receive a strategic investment of CAD 221 million from BAT in return for a 20 percent stake in the company.
“This collaboration is the culmination of extensive discussions and workshops as well as in-depth due diligence,” said Greg Engel, CEO of Organigram, in a statement.
Organigram highlighted the implications of the new business partnership and told investors that the deal will accelerate its product development model and advance its options for US marketing strategy. “With the substantial capital injection, Organigram is even better positioned to expand into the US and other international markets in due course and subject to applicable law,” the firm said.
BAT announced to investors that the deal will help diversify the company’s portfolio beyond nicotine. “This collaboration is in line with our long-term strategy and allows us to collaborate with Organigramm at the R&D level and contribute to their broader activities,” said Dr. David O’Reilly, BAT Scientific Research Director.
Cannabis company news
- Curaleaf Holdings (CSE: CURA, OTCQX: CURLF) has published a financial report for the fourth fiscal quarter 2020 and the entire fiscal year 2020. The multi-state operator reported total revenue of $ 230.3 million for the quarter and a 184 percent increase in total annual revenue year over year, resulting in $ 626.6 million. It continued to post a net loss of $ 35.3 million for the period, resulting in a total annual net loss of $ 61.7 million year over year.
- Subversive acquisition TSX: SVX.U, NEO: SVX.U, OTCQX: SBVRF) acknowledged approval of a receiving mandate to proceed with a specific resolution regarding a proposed plan for the agreement. The company is asking shareholders to extend the deadline for completing a qualifying transaction to August 31, 2021.
- Cannara Biotech (CSE: LOVE, OTCQB: LOVE) announced to investors that they have received conditional approval to list their shares on the TSX Venture Exchange. In a statement, Zohar Krivorot, President and CEO of Cannara said the approval “will give our company greater market visibility and improved liquidity for our shareholders as we wait for a year of significant growth.”
- LIVE cannabis (TSX: LIVE, OTCQX: VVCIF) informed the market that its Vanluven Ontario facility had received EU Good Manufacturing Practices (GMP) certification from the European Union and enabled the company to take advantage of business opportunities in the European cannabis market.
“It will enable us to provide high-quality medicinal cannabis flowers to patients, doctors and pharmacists in Germany, the rest of Europe and beyond,” said Andreas Sander, VIVO President for European Operations.
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Securities Disclosure: I, Bryan Mc Govern, have no direct interest in any of the companies mentioned in this article.