Marijuana Inc, Other Weed Entrepreneurs Eyeing Mexico as Possible Medical Cannabis Market

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Mexico may have made quite a reputation in illegal drugs, thanks largely to vicious and outlawed drug cartels. But it does not mean legitimate weed entrepreneurs can't cash in on legalized cannabis in the country.

While cannabis is still prohibited in Mexico, a court ruling back in November 2015 has kept the door ajar for medical marijuana growers and pot private equity firms hoping to make some money out of a possible legalization of medical and recreational marijuana in the South American country.

And, this prompted these companies to turn their eyes on Mexico and consider it a lucrative new business opportunity, despite a possible competition against drug cartels, reports Reuters.

"Me personally, I'm not afraid to go to Mexico," said Daniel Sparks, head of government affairs at BioTrackTHC, a U.S.-based provider of marijuana supply-chain software.

"I am not so optimistic to think that a cannabis business in Mexico would not encounter opposition or violence from the cartels. However, their profit margins are being eroded daily, monthly and yearly by the continued expansion of medical and recreational marijuana programs in more and more U.S. states," he added.

According to Sparks, the drug cartel in Mexico could possibly give little attention in the legal marijuana industry, more so, if reputable pharmaceutical and tech firms were introduced in the equation, the International Business Times also noted.

Brendan Kennedy, chief executive of pot private equity firm Privateer Holdings, also believes that Mexico can be a potential source of investment and also downplayed the possible run-in with the drug cartels citing the fact that many American and international companies were already doing business in the country.

He also cited that, in the US, legalization of marijuana has somewhat lessened the criminal appeal of it and that by doing the same thing in Mexico, investors could be lured.

"It shows North America ... is moving in the same direction, and that's more than just symbolic: it's indicative of what will happen at a global scale," Kennedy said. "Mexico is an interesting investment opportunity."

Kennedy's firm estimates that a legal medical and recreational cannabis market in Mexico could be worth $1.7 billion a year and some of the goods that companies can bring in include marijuana plants for medical usage and cannabis-based medicines to supply-chain software.

According to the reports, the 120 million Mexicans is a sizeable market for businesses even though the legalization process may still take a while before it comes into fruition.