Mexico’s Chamber of Deputies has approved a bill to allow regulated marijuana and hemp industries. But the pending law still has hurdles to overcome and it could be years before a flourishing industry emerges.

Lawmakers in Mexico’s lower house voted largely in support of the bill, with 316 votes in favor and 129 against. There were 23 abstentions.

Next, the Senate needs to review and approve the bill’s revisions before it heads to President Andres Manuel Lopez Obrador for his signature.

After the law is enacted, Mexico will join Canada and Uruguay as the only countries to legalize an adult-use marijuana industry.

However, the scope of the industry and available business opportunities will be largely carved out by the regulations in support of the law.

Those regulations, yet to be developed, will limit opportunities in some cases and open the door to others.

That could have unforeseen implications for businesses and investors.

The Senate approved its version of the legalization bill in November.

Mexico’s  Supreme Court earlier ruled that the absolute prohibition of recreational marijuana was unconstitutional, setting in motion the process to establish a formal law.

Read more about the Mexico vote at Marijuana Business Daily.

Hemp imports were cited as a main driver for Congress voting in 2014 to authorize limited experimentation with the crop after decades of head-scratching policies allowing hemp to be bought and sold in the United States — as long as it was grown somewhere else.

But hemp exports have grown dramatically ever since.

Hemp imports grew 82% in the first year after the passage of the 2014 Farm Bill, from $42.9 million in 2014 to $78.1 million in 2015.

Hemp imports continued to climb after hemp authorization was expanded four years later.

Last year the U.S. imported an estimated $87.8 million in hemp, according to the 2021 Hemp & CBD Factbook.

Non-CBD hemp imports into the United States grew by 10% in first 10 months of 2020, compared to the same period in 2019. 

The value of incoming shipments of hempseed through October jumped nearly a quarter compared to 2019, while the value of raw hemp imports leaped by more than a third.

The 10-month values for these two categories exceeded the full-year values for 2019 and offset severe drops in the import of hempseed oil and oilcake in 2020. 

According to the International Trade Commission, Canada remained the top source for hemp imports in 2020, supplying more than 85% of incoming non-CBD products in the 10 months ended October.

China, Romania, the Dominican Republic and Poland rounded out the top five countries delivering hemp fiber, textile and seed products to the United States during that period. 

Compared to 2018, Lithuania, Germany and Bolivia were new entrants to the top 10 list of hemp-exporting countries in 2020. 

More exclusive intelligence about the hemp industry is available in the Hemp & CBD Industry Factbook 2021 Edition. It’s on sale here.

Canadian Rockies Hemp Corp., a decorticator and processor near Edmonton, Alberta, says its expansion plans to become the largest hemp processing facility in North America are back on track after a $14 million (CAD$18 million) infusion from Merida Capital Holdings, a private equity cannabis investment fund.

The loan will be used to help the processor finish expansion plans to 60,000 square feet that were put on hold for nine months last year after the processor’s original financing fell through, the Alberta Farmer newspaper reported.

The company’s CEO, Aaron Barr, told Hemp Industry Daily by email the financing glitch was related to the COVID-19 pandemic. With construction resuming, he said, the company has some 5,000 acres of hemp in Alberta growing under contract from 20 to 30 farmers. CRHC harvests, bales and transports the hemp to the processing site.

The expansion should be complete by summer.

CRHC is privately held and sells hemp hurd and pellets for animal bedding and cat litter and fiber for textile processing. Barr says the area’s arid climate allows outdoor hemp storage for two to four years without decay, a competitive advantage compared to processors in humid climates who must store bales indoors.

This story first appeared at Marijuana Business Daily.

The development of new genetic-editing technology offers cannabis companies a cost-effective way to make specific changes to marijuana and hemp plants – such as more disease resistance – without creating a genetically modified organism.

The technology, known as Crispr-Cas9, will allow the cannabis industry to build new, improved plants that promise to introduce hardiness and efficiencies into cultivation.

That, in turn, could boost profits.

Developed by Emmanuelle Charpentier and Jennifer A. Doudna, the Crispr-Cas9 gene-editing technique revolutionizes genetic engineering in many fields, including medicine and agriculture.

They were awarded the 2020 Nobel Prize in chemistry for their work.

In the case of cannabis, Crispr gene editing can produce new testable strains within a matter of weeks – unlike previous, more manual techniques.

Some possible changes to the cannabis genome include:

• Disease resistance: Large-scale agriculture is susceptible to various pests and diseases. The technique should provide a way to quickly create resistant plants.
• Climate tolerance: Climate change will alter how cannabis is grown in the coming decades. Plants that can withstand a wider range of temperature and daylight will be valuable as that occurs.
• Increased trichomes: Researchers are trying to increase the trichome density on the plants as a way to boost the production of terpenes and cannabinoids.
• Terpene manipulation: Changing the terpene makeup of a plant could provide a way to create distinctive and brandable cannabis products.
• CBD-to-THC ratio: Hemp producers use the gene-editing technique to inhibit or eliminate the production of THC in the plants. It can also be used to manipulate the creation of CBD.
• Biomass improvements: The ability to create specific traits and improvements to non-THC and CBD producing biomass of plants could help increase cultivator profits by minimizing plant waste.
• Plant-wide THC production: In the vein of biomass improvements, work has already begun on the development of marijuana plants that produce THC in more parts of the plant.
• Novel cannabinoid production: As the industry begins to understand cannabinoids other than THC and CBD, look for gene editing to be at the forefront of manipulating plants to produce them.

The Crispr-Cas9 process creates new DNA but technically does not create a genetically modified organism (GMO) because it does not introduce foreign DNA to the plant.

The process works by removing the section of the DNA the cultivator is hoping to change.

In addition, a guide piece of RNA is created and attached to an enzyme called Cas9.

Together, these two elements make up the Crispr tool.

The tool finds the targeted section of DNA while the enzyme cuts out the section as scissors would. New genetic material is introduced and attaches to the missing segment.

Companies are already using the technique to manipulate hemp and marijuana plants.

Evergreen, Colorado-based Ebbu, which was acquired by Canada-based Canopy Growth Corp. in 2018, was an early adopter of gene-editing techniques to try to produce single-cannabinoid strains, among other traits.

CanBreed, an Israeli company focused on developing genetically stable seeds, licensed the Crispr technology to enhance the traits of those seeds.

In late 2020, CanBreed announced the purchase of a 3.5-acre farm in San Diego.

A Canadian manufacturing company that makes agricultural equipment for the marijuana and hemp industries is accusing U.S. Customs and Border Protection of wrongly blocking imports needed by its Washington state subsidiary to build a hemp-trimming machine.

Keirton USA says that Customs agents seized last month in Blaine, Washington, calling the equipment “drug paraphernalia.” The seizure took components the company needed to make vacuums and trimmers.

The company says its Washington state location imports components from Canada, China, Taiwan and Japan.

Keirton filed suit Tuesday, seeking the return of its equipment, plus a court order requiring Customs to allow Keirton’s shipments.

“Keirton has taken appropriate steps to ensure that its merchandise is used only for lawful purposes,” the company said in its lawsuit.

Keirton USA also sued Customs last year, resulting in a settlement. Keirton says the agency broke that agreement in continuing to seize imports.

Keirton is based in Vancouver, British Columbia. Its subsidiary Keirton USA is based in Ferndale, Washington.

Law360 first reported the Keirton lawsuit.

Canadian hemp and marijuana producer Tilray cut its annual loss to $271 million for 2020 — an improvement from the Nanaimo, British Columbia company’s $321 million loss in 2019, according to the full-year and fourth-quarter results released Wednesday.

Tilray, which is on the verge of being merged with Canadian peer Aphria, lost only $3 million in its fourth quarter ended Dec. 31, 2020.

Adjusted EBITDA was $2.2 million.

Tilray reports its financials in U.S. dollars.

Overall revenue rose to $56.6 million in the quarter, up from $51.4 million for the July-September period.

Revenue attributed to cannabis was $41.2 million, up from the previous quarter’s $31.4 million.

Hemp revenue, on the other hand, fell 23% quarter-over-quarter to $15.3 million.

Tilray shares trade as TLRY on the Nasdaq exchange, and Aphria shares trade as APHA on the Nasdaq and Toronto Stock Exchange.

Read more about Tilray’s financials at and the merger at Marijuana Business Daily.

A Canadian hemp producer says it has acquired the water rights necessary to pursue its plan to grow hemp in northwestern Colorado and process the hemp into construction components for affordable homes on the same land.

Global Hemp Group says it has acquired control of Western Sierra Resource Corp. of Steamboat Springs, Colorado, and its water rights.

Terms of the acquisition weren’t announced. Global Hemp Group said last month that it planned to issue 10 million purchase warrants to Western Sierra’s parent company, Prescient Strategies Group, and to loan Western Sierra $3,842,269 as part of the deal.

Global Hemp Group CEO Curt Huber told Hemp Industry Daily that he plans to acquire land and develop a parcel where hemp could be grown, processed into construction components, and then used to build affordable homes all in one place.

“We can’t conceivably build enough houses to solve the (affordable housing) problem, but we can certainly put a dent in it,” Huber said.

Global Hemp Group trades on the Canadian Stock Exchange as GHG.

(A version of this story originally appeared at Marijuana Business Daily and will be updated.)

An Irish pharmaceutical firm, Jazz Pharmaceuticals, has agreed to purchase United Kingdom-based GW Pharmaceuticals, one of the largest medical cannabinoid companies in the world, for $7.2 billion, the drug companies said Wednesday.

The proposed cash-and-stock deal would be the largest acquisition in the cannabis industry to date and a key move by a pharmaceutical company into cannabis. GW created the only plant-derived cannabis medicine approved by the U.S. Food and Drug Administration, Epidiolex.

It could also could spur increased research and development into the burgeoning field.

Under the terms of the transaction, each GW shareholder would receive $200 in cash and $20 in Jazz ordinary shares for each GW American Depositary Share, resulting in an aggregate consideration of $7.2 billion.

“What we’ve been able to demonstrate at GW over the last 20 years is that the cannabinoid platform is a real and compelling science,” Justin Gover, CEO of GW Pharmaceuticals, told analysts during a conference call.

“There is very significant growth potential within the approved indications.”

GW’s main product is Epidiolex, which the company said achieved approximately $510 million in annual sales within two years of its launch.

Epidiolex has been approved in certain countries for the treatment of certain seizure disorders.

Jazz Pharmaceuticals CEO Bruce Cozadd sees opportunity to expand sales in Europe.

“This product is not that far into its launch. The GW team has done an excellent job, but there is lots of room to grow in the existing indications, including THC, which was fairly recent,” Cozadd told analysts.

“Similarly, there is lots of room in Europe. If you look at other product launches in this space, that’s what we’ve seen over time, as physicians get more and more comfortable with the use of these agents in these patients that really need a different therapy to get additional benefit.”

Gover said there is unlocked opportunity beyond Epidiolex.

“It’s not just Epidiolex. For each one of the pipeline assets, we’ve been very thoughtful about the exclusivity approach,” he said. “We understand and appreciate good medicine needs to primarily be transformative for patients, but it also needs to … return value to investors.

“There is still more to come, even with Epidiolex itself. This is an IP estate that is going to continue to build.”

The proposed deal has already been approved by the respective companies’ boards and is expected to close in the second quarter of this year.

Before the GW deal, Jazz Pharmaceuticals had said it expected to report revenue between $2.32 billion to $2.38 billion in 2020.

Diverging strategies

The Jazz-GW transaction highlights diverging strategies by some large companies when it comes to deploying capital in medical cannabinoids.

GW differentiated itself in the field of medical cannabis by developing a suite of products via traditional regulatory-approval pathways, including through expensive clinical trials. GW became the largest medical cannabinoid company in the world in the process.

The UK company’s R&D spending amounted to $290.5 million in 2019 and the first three quarters of fiscal 2020.

GW employs 278 people in research and development, more than the 192 people involved in manufacturing and operations.

The company has exported its products to more than 30 countries, according to financial disclosures, for either commercial or research purposes.

GW’s intellectual-property portfolio includes 767 issued patents outside the United States and 57 issued patents in the U.S., according to the company’s annual disclosure.

Additionally, the company said it has 259 pending patent applications worldwide.

Issued or pending claims cover:

• Plants.
• Plant extracts.
• Extraction technology.
• Pharmaceutical formulations.
• Drug delivery.
• The therapeutic uses of cannabinoids.
• Plant-variety rights.

GW leases three growing facilities in the United Kingdom, measuring a combined 2.1 million square feet in size.

In December, Canopy initiated a lawsuit against GW in U.S. federal court, alleging that the U.K. company knowingly infringed upon Canopy’s intellectual property.

According to a complaint, GW uses a Canopy-patented method to extract the CBD that’s the active ingredient in its Epidiolex medication.

In a statement emailed to Marijuana Business Daily that month, GW said that, “based on our preliminary review of the complaint, we are confident in our position and will vigorously defend against this lawsuit.”

GW trades on the Nasdaq as GWPH. Jazz trades on the Nasdaq as JAZZ.

Matt Lamers is Marijuana Business Daily’s international editor, based near Toronto. He can be reached at [email protected].

The first Big Tobacco company to join the hemp and marijuana industries is getting back out.

Pyxus International, one of the world’s largest tobacco suppliers, said Thursday that it will focus on its more profitable tobacco and liquid nicotine products after filing for bankruptcy in June.

Based in Morrisville, North Carolina, Pyxus was growing hemp in the U.S. and marijuana in Canada. But the company was hard hit by declining tobacco consumption and coronavirus-sparked supply disruptions.

Pyxus’ Canadian subsidiaries, Figr Brands, were not part of the initial bankruptcy filing but have since filed for bankruptcy protection in that country. Pyxus is looking for a buyer for its Figr companies.

“We maintain our belief that there is value in FIGR, and its growth can be accelerated with the right capital structure and partner,” Pyxus CEO Pieter Sikkel said in a statement.

Pyxus, formerly Alliance One International, was part of the influx of Big Tobacco and Alcohol into the cannabis industry.

Pyxus trades on over-the-counter markets as PYXX.

Molson Coors Beverage Co. says it has launched CBD drinks in Colorado through TRUSS CBD USA, its joint venture with HEXO Corp.

The beverage line will be available in three flavors – Grapefruit Tarragon, Strawberry Hibiscus and Blueberry Lavender under the name, “Verywell,” Molson Coors and HEXO said Wednesday.

The companies first partnered in 2018 to launch beverages in Canada through another joint venture called Truss Beverages, which sells non-alcoholic cannabis-infused drinks.

“Our joint venture with Molson Coors Canada saw Truss Beverage Brands become the No. 1 choice for consumers in Canada, and we are expecting similarly great results in the U.S.,” said HEXO CEO and co-founder Sebastien St-Louis.

Production and distribution for the Colorado CBD beverages will be kept within state lines because Colorado is one of the few states with an established regulatory framework for hemp-derived CBD in food and beverages, the companies previously said.

The companies did not elaborate on where in Colorado the drinks would be sold. Pete Marino, president of the emerging growth division for Molson Coors, told Bloomberg that Colorado will be a testing ground for the new brand.

Molson Coors trades on the New York Stock Exchange as TAP. Hexo Corp. trades on the Toronto Stock Exchange as HEXO.