The Mexico Lower House of Congress just passed legislation on April 28 to legalize medical marijuana in the country. Now the President, Enrique Pena Nieto, must sign the bill into law to legalize cannabis for medical and scientific uses in the country. The bill passed 371-11.
The ruling “eliminates the prohibition and criminalization of acts related to the medicinal use of marijuana and its scientific research, and those relating to the production and distribution of the plant for these purposes.”
One company sure to benefit from such legislation, Medical Marijuana Inc (OTCMKTS:MJNA), has not seen its share price increase since Congress’s’ approval.
This is significant considering the company is best positioned of any to take advantage of changes to Mexico’s medical marijuana laws. A Medical Marijuana Inc product, a CBD oil called RSHO-X, represents the only cannabis product that can be imported into Mexico.
The company’s subsidiary, Hemp Meds, has pioneered this market. Hemp Meds has a long history. Philosopher, entrepreneur and soap maker, Emmanuel Bronner, founded Dr. Bronner’s soap company outside of San Diego, California.
The company has been subject of many published articles and is celebrated throughout southern California and the U.S. for its moral philosophy and fair trade ingredients. It has since expanded into a multinational, multimillion dollar operation thanks to Dr. Bronner’s heirs. The heirs eventually founded Hemp Meds. It is the division of Medical Marijuana Inc. that has led the charge into Mexico with hemp-derived products.
Medical Marijuana, Inc., first exported to Mexico to help families gain access to THC-free CBD hemp oil Real Scientific Hemp Oil™ (RSHO-X™), after the Health Department of Mexico, COFEPRIS, issued the country’s first-ever government permits on February 2, 2016.
RSHO-X, studied clinically for a tough to cure epilepsy called Lennox-Gastaut, improved the condition of many of its patients. 84% of 39 patients, who took up to 5-7mg CBD/kg progressive doses of RSHO-X™ 5000MG, experienced a reduction in motor seizures; 53% reported better than a 75% reduction in seizures; and 7 reported a complete elimination of all seizures over a 4-month period, with zero reported side effects.The only other comparable product might be GW Pharmaceuticals PLC-ADR (NASDAQ:GWPH).
In January of this year, Medical Marijuana released information regarding expansion of its Mexico operations. HempMeds Mexico had received permission from Mexico’s health authority to import its flagship product Real Scientific Hemp Oil-X in January for a 44-year old woman with Stage 5 breast cancer. At that time, Medical Marijuana was trading for approximately $0.12 per share.
MJNA has been an investor’s favorite as an original marijuana stock on over the counter markets. Thanks to Hemp Meds, it enjoys a major inroad into the Mexico medical marijuana market. Hemp Meds offices are just north of the world’s busiest border between San Diego and Tijuana.
The last increase for MJNA took place alongside increases across the sector in the run-up to November’s 2016 U.S. Presidential election. Shares hit just over 25 cents in November before correcting. It’s all-time high is nearly $2.00 shortly after its initial listing.
Medical Marijuana’s overall market valuation currently is $296 million. It is known to suffer from debts that cause dilution. Despite this, the company is a leader in the space thanks to its history, big money and inroads into foreign markets.
“We applaud Mexico lawmakers for taking this significant step to reform cannabis laws to benefit their citizens,” said CEO of Medical Marijuana, Inc. Dr. Stuart Titus. “We are extremely proud to have been the first company to provide Mexico citizens with legal access to a medical product based on cannabis (THC-free hemp CBD). We believe the successful implementation of our product within Mexico, plus the overwhelming success of our clinical studies have helped to change the dialogue within the country regarding the safety and therapeutic potential of all forms of cannabis.”
Dr. Titus continued: “Given the Mexican Congress’ decision today, we are looking forward to the opportunity to assist an increasing number of citizens that suffer from unsuccessfully treated, debilitating medical conditions. Furthermore, we commend Mexican President Enrique Pena Nieto’s initiative to reform Mexico’s General Health Law and the country’s Federal Penal Code to continue relaxing laws against the medicinal use of cannabis. With the Mexico Congress’ decision today, families will experience fewer roadblocks when it comes to gaining access within the country.”
Medical Marijuana, Inc.’s 2016 revenue increased quarter over quarter by 66% from Q1 to Q4. Net Comprehensive Income increased to $171,387,975 – 731% higher than 2015. The company’s net revenue was $8,003,943 in 2016.