November 2, 2018 MJ Shareholders
November 2nd, 2018
Exclusive, News, Top News
North America has dominated cannabis headlines over the past several years with the legalization of medical and adult-use cannabis across Canada and a growing number of U.S. states. But over the past couple of years, the Latin American cannabis industry has emerged from the shadows as the next cannabis frontier, with over 500 million adult-use customers and 4.3 million patients drawing in companies and investors.
In this article, we will look at why investors shouldn’t ignore Latin American cannabis markets and why Chemesis International Inc. (CSE: CSI) (OTC: CADMF) could be a compelling play in the space.
Underappreciated $12.7 Billion Market
Prohibition Partners believes that the Latin American cannabis industry will grow from $125 million in revenue this year to $12.7 billion by 2028. Unlike the North American markets, the UK-based analyst believes that the medical sector will make up more than two-thirds of the revenue. Uruguay became the first country to legalize all cannabis back in December 2013 and ten other countries have already legalized medical cannabis in some form.
Last year, Mexico garnered international attention when the government moved to legalize medical cannabis. President Enrique Pena Nieto signed a bill into law that officially legalized the cultivation, production, and use of medical cannabis products with less than one percent tetrahydrocannabinol (THC) in June 2017. President-elect Andres Manuel Lopez Obrador recently unveiled more detailed plans to overhaul cannabis legislation in a big way.
Columbia could become an even larger opportunity after the government signaled its intent to grow up to 40.5 tons of cannabis per year, which would account for nearly half of the licenses issued around the world. If successful, the country could capture as much as one-fifth of the global market, worth about $40 billion per year. Many Colombian farmers believe that cannabis could be the next coffee in terms of economic potential.
Chemesis Expands into Latin America
Chemesis International Inc. (CSE: CSI) (OTC: CADMF), a vertically-integrated cannabis operator with operations in California and Puerto Rico, aims to expand its global footprint into Latin America through its newly launched subsidiary, Chemesis Latin America. Using its networks and existing expertise, the company aims to explore opportunities for cultivation, production, and export across Latin America.
“Chemesis Latin America is a big step forward in our global growth strategy,” said CEO Edgar Montero in the press release announcing the new subsidiary. “We believe that Chemesis has a major advantage in this region, as the recent acquisition of Natural Ventures can be leveraged to quickly capitalize on upcoming opportunities. With progressive regulations, Latin America becomes a key market that will be a major part of our portfolio.”
Earlier this year, the company signed a definitive agreement to acquire 80 percent of Natural Ventures PR LLC, a seed-to-sale cannabis firm based in Caguas, Puerto Rico. The Puerto Rican company is licensed to cultivate 100,000 sq. ft. of cannabis flower and build out 35,000 sq. ft. of manufacturing floor space to produce extracts. It’s currently producing extracts, edibles, and other cannabis products for the local market.
Latin America could become a significant global player in the cannabis industry, but many investors don’t have meaningful exposure in their portfolios.
Chemesis International Inc. (CSE: CSI) (OTC: CADMF) could be a compelling play in the space following its agreement to acquire Natural Ventures PR LLC in Puerto Rico and its new subsidiary looking for opportunities in the region. Investors may want to keep a close eye on the company as it continues to set up new agreements and expand its presence throughout the globe rather than focusing on just North America.
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
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