Agriculture hemp one step closer to reality for Louisiana

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Mexico's Proposed Law to Federally legalize marijuana aims at cutting out drug-related crime

Mexican lawmakers are debating the details of legislation that would legalize marijuana nationwide. Some are projecting that legislation could be ready for consideration as soon as late October, making for a quick turnaround on the issue. 

If Mexico legalizes marijuana for adult use nationwide, the country will become only the third in the world to do so. Uruguay and Canada have both made cannabis legal at the federal level. The decision would put the United States, where marijuana is illegal at the federal level, between two large countries that are getting a big head start in creating legal cannabis markets. 

Lawmakers are considering 13 different proposals during hearings that will include comments from the public, according to Mexico News Daily. These include a bill filed by Sen. Julio Menchaca Salazar of the government’s ruling MORENA party.

Making cannabis unlawful has “only generated the creation of an organized mafia,” the senator said, according to a MORENA press release.

The Supreme Court Cleared The Way For This In Early 2019

Lawmakers are reviewing the legalization proposals because, according to Reuters, the country’s Supreme Court ruled that the prohibition against marijuana was unconstitutional. The decision was part of a series of orders issued by the court on marijuana in late 2018.

Per the Mexican Supreme Court, “the effects caused by marijuana do not justify an absolute prohibition on its consumption.” The decision effectively turned the issue over the government to establish the rules and regulations of a legal system.

President Andrés Manuel López Obrador’s government has since created legislation that creates a medical marijuana industry nationwide, and also would legalize recreational marijuana nationwide, Reuters reported. That move came after the Supreme Court had a six-month deadline for lawmakers to create regulations for medical marijuana to ensure patients who need cannabis can obtain it legally.

Mexico Lawmakers Want Legalization To Help Curtail Drug-Related Crime

The bill filed by the president’s party is one of many that address crime in Mexico, focused heavily on drug-related crime; which continues to be a major issue for Mexico.

Mexican drug cartels reportedly make between $19 billion and $29 billion in drug sales in the United States, according to a joint Mexico-U.S. report, per CNN.   

According to the press release about the bill filed by Salazar, the legislation would make Mexico’s Ministry of Health responsible for designing regulations for the “planting, cultivation, harvesting, preparation, possession and transportation” of marijuana, as well as the laws governing use by adults in the country.

With a possible legislation draft within the next couple of weeks, Mexico could find itself with legalized marijuana nationwide as early as 2020.

Opinion: Here’s your game plan after marijuana stocks got throttled Thursday

I’ve warned investors that making money in marijuana stocks is not as simple as loading up when the news is good. That’s because bad news is sure to follow.

Thursday was a prime example in the stock market.

A lucrative industry does not mean that every company is a good investment. And even when a company is good, it does not mean that the stock is appropriately priced. In addition, marijuana stocks in particular are vulnerable to unsustainable valuations, sentiment shifts, high volatility, short squeezes, and “pump and dump” schemes.

At this time, the last thing marijuana stock investors needed was a punch in the gut, but they got one anyway.

Let’s explore what happened Thursday with the help of a chart.

Chart

Please click here for an annotated chart of marijuana stock Tilray TLRY, +1.60%.

Note the following:

• The chart shows the zone that represents the price paid for Tilray’s stock by a large number of investors who are still holding the stock.

• The chart shows that, on average, a typical investor appears to have lost about 75% of her investment.

• The chart shows the Arora signal to short-sell or sell Tilray as high as $280. The profits on the last tranche have been taken as low as $24. In short-selling, money is made when a stock falls.

• The latest downturn in marijuana stocks is in response to an announcement by marijuana company Hexo Corp. HEXO, -4.11%. Hexo said Thursday that fourth-quarter net revenue will be about $14.5 million to $16.5 million, and net revenue for the year will be about $46.5 million to $48.5 million. Both numbers are disappointing and below consensus estimates.

• Hexo withdrew its fiscal 2020 outlook.

• Hexo attributed the shortfall to slower-than-expected store roll-outs, pricing pressure, regulatory uncertainty and a delay in the approval of marijuana derivative products.

• Hexo’s stock promptly fell more than 20% for the day.

• The inference is that the same factors are applicable to other popular marijuana stocks such as Canopy Growth Corp. CGC, +0.05%, Cronos Group CRON, -0.07%, Aphria APHA, +0.44%  and Aurora Cannabis ACB, +1.48%.

• Recently, in a surprise announcement, MedMen Enterprises MMNFF, +0.81%  abandoned its buyout of PharmaCann, whose price was originally set at $600 million. It was the biggest marijuana deal in the U.S. at that time. MedMen’s CFO was ousted. Those developments created a negative environment prior to Hexo’s announcement.

• The vaping-illness crisis is adding to negative sentiment, especially for a stock like Greenlane Holdings GNLN, +1.74%. For full disclosure, an Arora Report service has a highly profitable short position in Greenlane.

Ask Arora: Nigam Arora answers your questions about investing in stocks, ETFs, bonds, gold and silver, oil and currencies. Have a question? Send it to Nigam Arora.

Additional warning

It is worth repeating Tilray stock’s 75% decline. Many, if not most, marijuana investors have losses in their portfolios. The year-end is approaching. At The Arora Report, we expect significant tax-loss selling in marijuana stocks between now and Dec. 31 unless there is good news that buoys the industry.

What to do now

The plan is to opportunistically pick the points when the selling is the greatest and buy select marijuana stocks. It is important that investors bring sophistication to their marijuana investing by implementing concepts such as long-term core positions and short-term trade-around positions. We also plan to selectively short-sell if there are “up” spikes.

Marijuana investors ought to learn the skill advocated by Arora’s 14th Law of Investing and Trading: “To be successful at investing and trading, become a master of position sizing.”

Disclosure: Subscribers to The Arora Report may have positions in the securities mentioned in this article or may take positions at any time. Nigam Arora is an investor, engineer and nuclear physicist by background who has founded two Inc. 500 fastest-growing companies. He is the founder of The Arora Report, which publishes four newsletters. Nigam can be reached at Nigam@TheAroraReport.com.

‘Green Light’ documentary throws the veil back on medicinal cannabis

The ACT may have just legalised the use of cannabis, but those seeking the drug for medicinal purposes are being left behind. ‘Green Light’ tells the story of two men risking their freedom to treat those in need.

Against the backdrop of the ACT legalising cannabis use and the pending three year anniversary of the government’s highly derided cannabis medicine licensing scheme, comes a documentary that deals with the reality of medicinal cannabis patients on the ground.

Green Light tracks Nicholas Morley and CBD Luke as they provide those in need with organic, whole-plant cannabis medicines, which is the norm in this country, as legal medicinal cannabis is wrapped in so much red tape, it’s nearly impossible to obtain, so those suffering must turn to the black market.

Both Luke and Nicholas have lived a life. Morley had a three-decade-long career in the fashion and music industries that saw him found cult fashion label Buddhist Punk.

However, these days, the pair are taking the compassionate route: risking their freedom to help others.

And not only does Green Light tell a compelling story, but it’s been beautifully shot in the NSW Northern Rivers region by director Ned Donohoe. And the patients that the documentary engages with, make the viewer realise just how valuable the work is that Nicholas and Luke are carrying out.

Legal, but inaccessible

As Green Light points out, cannabis was made illegal in Australia in 1928. And the two best-known molecules present in medicinal cannabis oils are CBD and THC. In the mid-1990s, a system was discovered in the human body, which responds with these molecules and promotes health.

Over the last decade, the awareness of the benefits that medicinal cannabis can bring to those suffering serious conditions grew to such an extent that the federal government passed laws in 2016, which established a medicinal cannabis licensing scheme.

Under the oversight of the TGA, this scheme came into effect on 30 October 2016. Although, three years on, the Office of Drug Control has only issued 20 medicinal cannabis licenses. And what’s legally available is a small trickle of local product and exorbitantly priced imported medicine.

As the Medicinal Cannabis Users Association of Australia related last month, there have only been 14,000 cannabis prescriptions issued since the scheme has been in operation, while a modest estimate of the number of people using cannabis medicine in this country is 100,000 patients.

The path with heart

So, right now, the medicinal cannabis gatekeepers in this country – whether that be the TGA, politicians, the pharmaceutical industry, or the prejudice some medical practitioners harbour about the plant – are withholding relief from the sick and dying.

And Nicholas and Luke have stepped forward to tell their story, which is similar to many other Australian cannabis oil producers, who’ve found themselves in the position of being able to help the sick, when no one else is prepared to.

Sydney Criminal Lawyers spoke with Nicholas Morley about how he came to take this compassionate path, his take on the local legal medicinal cannabis system, and why it shouldn’t be that good people have to break the law in order to benefit their fellow human beings.

Firstly, ‘Green Light’ is a new documentary that follows you and your partner as you provide sick people with cannabis medicine. Prior to this vocation, you actually had a successful career in fashion.

Nick, how did you find yourself helping patients in this way? And as there are risks involved, why would you say you do it?

I’d had quite a long career. I was a hairstylist, a makeup artist and a designer. Then I went back to hair and makeup. I did a whole bunch of different things.

I was living in Bali. Then I moved back to Australia. I spent a year in Sydney and then I moved to Byron. And when I moved there, I was really depressed. I’d had a bad breakup. And things just went horribly wrong.

I met Luke, and he helped me deal with that depression. One of the ways that we did that was by using CBD.

Once I got myself well, I had an epiphany. I thought I can’t go back to working in fashion: you’re either helping people sell clothes that will end up as landfill, or creating images that are there today, and gone tomorrow. And I needed to do something with more substance.

I’ve always had a compassionate side to me. And I decided I wasn’t going to do anything unless it was helping people. So, providing CBD was one way of doing that.

You’re providing high-quality organic oils to patients for a range of ailments. What are some of the conditions that you’ve been helping people with?

From extreme cases of cancer – like pancreatic cancer, I’ve got one guy who was given three months to live, and that was four years ago – all the way down to depression to motor neurons and to Parkinson’s. There are so many different conditions, it’s crazy.

You’ve just touched on this. But, I’d like to ask you, as cancer is a condition that comes up a number of times in Green Light. Nicholas, in your understanding, can medicinal cannabis turn cancer around?

Yes. It can halt it. And it can turn it around, absolutely. It doesn’t work in all cases. But, I’ve seen it work a lot of times. It’s been those times when nothing else has worked. They’ve tried that, and it’s worked.

It’s not a cure. I don’t call it a cure for cancer. But, it can definitely halt it, and it can prolong people’s lives.

And it’s a fantastic tool for helping people to get through all the side effects of having cancer, whether that’s the pain, or the effects of chemotherapy and radiation.

The Narcotic Drugs Amendment Bill was supposed to set up a legal cannabis medicine supply chain. How would you describe the system this legislation established?

A broken joke. We call it the scenic route. It’s doesn’t work. It wasn’t designed to create easy access for patients. In fact, it has made things more difficult. I don’t think the government had people’s best interests in mind when they were putting it together.

So, you’d say it wasn’t a serious attempt at making medicinal cannabis available for patients who need it? 

No, not at all. If they wanted to get serious about making it available, they’d just legalise it across the board and let people do what they want with it.

The documentary points out that what was actually legalised in this country were pharmaceutical isolates of cannabis for medicinal use. 

Now, what you’re providing is whole plant medicine. How do these two different forms of medicinal cannabis stack up against each other?

There’s no comparison. I’m a firm believer that the most important thing on this planet is soil and its quality. That’s where all our life force comes from.

So, if you’re eating good food that comes from good soil, you’re going to get well. It’s always going to taste better. It’s going to be better for you.

If you eat food that’s grown hydroponically, there’s not a lot of nutrients in it, or they’re nutrients that they’ve actually put in. It’s the same with cannabis medicine.

When cannabis is grown outdoors organically, it can be incredibly powerful, and a fantastic healing plant. But, if it’s not grown right, and if it’s not treated right, it’s nowhere near as good.

So, we won’t provide people with products that aren’t grown outdoors organically.

There are also a lot of concerns about isolates. I don’t think it’s necessary to isolate things. The only reason that they’re isolating it is so they can make more money out of it. And that’s not what this is about.

If the government had everybody’s best interest at heart, we’d be looking at this seriously. Australia actually has the perfect climate for growing cannabis. We could do two turnaround crops a year outdoors. There’s no need for any indoor farming.

So, how did it come about that you made Green Light? And as what you’re doing is illegal, why’d you go public like this?

We came to make it because I’d seen another documentary that Ned Donohoe, the director, had made. It was about another cannabis provider, Andrew Katelaris. And I thought it was a very good short piece. It’s called The Pot Doctor.

It just happened to be that my nephew knew Ned. He connected us, and I had a chat with him. I told him it was a really good piece and if he was interested in doing anything else, let me know. We ended up catching up about a year later, and we decided to make this documentary.

In regard to the legality of it all – and the risks involved – to be perfectly honest, the best place to hide is in plain sight. The other thing is, what I am doing is a human rights issue. I’m not some sort of drug dealer.

And lastly, I saw Green Light over the weekend and found it engaging. Nicholas, how did you feel about the documentary when you saw it? And why would you say people should get out and see it?

We’re happy with the results. If people are interested in this topic, it’s a good way of looking at it. It’s an interesting human story. Luke and I both have stories to tell. My past is such a contrast with what I do now.

It’s a nice story of human compassion. There are things that Luke and I have done in our lives that we’re not that proud of. There have been a few dark days. And that comes through in the film.

This is our chance to give back and help people. That feels good.

We both get high off helping people.