Bulls And Bud Of The Week: How To Get A Piece Of The Mexico Cannabis Market And Fast-Acting Edibles With Sunderstorm

Welcome to another issue of Bulls and Bud of the Week.

An Under-the-Radar Play on Mexican Weed

Pretty soon, the U.S. will be sandwiched between two countries that enjoy the health, social, and economic benefits of legal cannabis.

Canada took the plunge last year, and before the end of this year, the good people of Mexico will also have the freedom to purchase and consume this amazing plant without the fear of state-sanctioned violence.

Of course, from an investment perspective, the two countries couldn’t be further apart.

In Canada, there are plenty of publicly-traded cannabis companies in which you can invest. But in Mexico, at least this early in the game, there aren’t many options. Which is unfortunate, when you consider just how lucrative this market will be.
Mexico is the second-most populated country in Latin America, boasting in excess of 1.4 million cannabis consumers. And according to New Frontier Data, its total potential market revenues surpass $2 billion. I suspect that’s a conservative estimate. Either way, cannabis investors would be wise to pay very close attention to the Mexico market, and try to get some exposure to it.

The reality, however, is that this can be difficult, as there aren’t many ways to play this. Particularly because Mexico is trying to limit influence from outside countries. Moreover, it’s likely that small farmers and indigenous peoples will have priority in terms of licensing. As much I want a piece of the Mexico market, I applaud the efforts being taken by lawmakers to ensure that social justices isn’t being considered as an afterthought, and that not just those with big checks can get a seat at the table.

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That being said, there is one public company you can buy now that does have some excellent exposure to the Mexico cannabis market.

The company is called Captiva Verde CPIVF PWR, and earlier this month the company announced that it has a full commercialization license in Mexico.  This is a comprehensive pharmaceutical license to sell, market and distribute an entire suite of pharmaceutical health, wellness and veterinarian products.

Just so you understand the magnitude of this announcement, it is my understanding that when the Senate does officially approve legalization, it will take up to three years to make the rules to actually get a license.  So essentially, Captiva is three years ahead of the curve with its current license.

This particular license covers cannabis, narcotics, and psychoactive drugs, AND is for medical and pharmaceutical purposes to import manufacturing and distribution.

Captiva was able to enter the Mexico market after completing a share exchange agreement with Salud Esmeralda de Mexico SA de CV.  Salud Esmeralda is a distributor of pharmaceutical products in Mexico, and prior to the acquisition, held this license.

Although Captiva Verde is not a well-known name in the cannabis space, and really isn’t a pure play cannabis stock, management pulled off a very big win here.  And once Mexico officially goes legal, I suspect a lot of folks are going to discover Captiva Verde.

Sunderstorm Delivers a Game-Changer in Edibles

It’s not that I don’t like flower or the occasional pre-roll (Wilford pre-rolls are my favorite), but most of the time, I stick with edibles.  I just prefer ingesting it instead of smoking it.

Of course, the downside to edibles is that they take a long time to kick in.

There are certain edibles that I eat all the time. Mostly Defonce and PLUS Products (OTC: PLPRF) With both of those, I know exactly how long they’ll take to kick in.  So I prepare accordingly.  But I’d be lying if I said that I didn’t want these edibles to kick in a bit faster.  And I’m not the only one.

Turns out, the second most common complaint about edibles is the long wait time.  But it looks as if Sunderstorm, which is currently the #3 edibles company in California, has rectified this problem.

A few months ago, Sunderstorm launched a new edibles brand that uses a nanotechnology delivery system which can take as little as 15 minutes to kick in, with an absorption rate that’s five times what you’d get with a typical edible.  It’s called Kahna Nano.

Now to be honest, I’m a bit of a snob when it comes to edibles.  I want them to taste good, I want them to be consistent in dosing, and I want them to do exactly what management claims they can do.  This is why I’m so loyal to Defonce and PLUS Products, and it’s why Sunderstorm has now found a place in my stash.

You see, on my last trip to California, I picked up a bag of these new edibles, and took a spin.  The result: Good flavor, accurate dosing, and most important, a very fast onset time.

Typically it takes about an hour to an hour and fifteen minutes for an edible to start working on me.  This one took about 20 minutes.  

Folks, this completely changes the game.  

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I’ve seen plenty of similar offerings boasting fast onset times, but this is the only one that’s delivered for me.

Now I’m not going to pretend I understand the technology or how this works.  But what I do know is that the ability to deliver a quality experience with a faster onset time puts Sunderstorm in a position of strength heading into 2020.

Much like Defonce and PLUS Products, I suspect Sunderstorm’s ability to create a viable brand that can effectively compete in a fiercely competitive market environment, is going to make it a very attractive acquisition target once the prohibition of cannabis is lifted.  

In the meantime, if you’re itching for an edible, but you’re a bit impatient, give Sunderstorm’s new Khana Nano a go.

Jeff Siegel is the co-founder and managing editor of Green Chip Stocks, a private investment community focused on socially-responsible investing. He is an expert in renewable energy and cannabis investing, has been a featured guest on Fox, CNBC and Bloomberg Asia, and is the author of the best-selling book, "Investing in Renewable Energy: Making Money on Green Chip Stocks."

Photo by Javier Hasse.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.