Next Mexican President Wants to End War on Drugs
On Tuesday Sanchez Cordero stated at a university seminar that Lopez Obrador has given her broad leeway to review Mexico’s drug policy. “On the subject of decriminalizing drugs, Andres Manuel told me and I quote: ‘Carte blanche, Whatever is necessary to restore peace in this country. Let’s open up the debate’.”
Aphria Signs Attractive International Deal
Though there are no bargains when it comes to marijuana assets, Aphria looks to have received much more current value for the purchase price than the international deal struck by Canopy Growth two weeks ago.
Germany Starting all Over with Licensed Growing Tender
In shocking news out of Deutschland, BfArM, the federal agency responsible for the management of the first tender cultivation bid, has issued a notice that it’s ditching the first tender bid and will start from scratch.
This will likely push off the first medical cultivation of marijuana in Germany to 2020 at the earliest.
Manitoba Adding 6% to Retail Marijuana Tax
This additional tax means Manitoba could have a 41% tax rate on retail cannabis, much higher than the 20-35% tax rates in the US. If taxes are too high consumers will continue to buy from the black market and legal sales with disappoint, similar to what is happening in California today.
Source: Winnipeg Free Press Files
New UK Opinion Poll on Marijuana Legalization is Released
22% of UK citizens polled strongly support marijuana legalization while 29% somewhat support it. This compares to 19% who strongly oppose legalization and 16% who somewhat oppose it. 51% for 50% against or undecided points to a market moving in the right direction but not one that will see recreational legalization anytime soon.
Marijuana Stock Performance for the Week
Marijuana stocks sold off again, week down 8% as a group. Canadian stocks were off 7% with large cap names underperforming which happens very infrequently.
Even with all of the positive momentum on legalization, the stocks are down 9% since the recent bottom in April. Retail investors are still waiting for a rebound in stocks leading up to legalization which could happen for a few weeks just before the October 17 legalization date, but it’s looking like this is going to be a long summer of lacklustre performance.
READ THE MARIJUANA EXPORT MIRAGE FOR AN IN-DEPTH REPORT ON THE STATE OF DEMAND FOR MEDICAL MARIJUANA OUTSIDE OF CANADA
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