Colombia Legalizes Export of Medical Cannabis
Colombian President Iván Duque Márquez has signed a decree legalizing the export of medical cannabis. Until now, companies were only allowed to export cannabinoid extracts abroad.
Medical Cannabis Market Projected to Reach 4.7 Trillion Rubles
On July 14, the management of Canamonte, one of Colombia’s leading cannabis companies, sent a letter to President Márquez requesting the removal of the ban on exporting medical cannabis. Company executives stated that cannabis flower accounts for 53% of the total medical cannabis trade, and that export restrictions were causing the industry to lose profits.
The Colombian government legalized medical cannabis in 2016, but authorities did not allow commercial entities to export cannabis flower, fearing that cannabinoid products could leak onto the black market.
President Márquez has now decided to support the cannabis industry by lifting the export ban on cannabis flower. He also authorized the production of cosmetics, beverages, food products, and textiles from industrial cannabis varieties. Officials predict that by 2024, the global medical cannabis market will reach $64 billion (4.7 trillion rubles). The development of the cannabis sector is expected to bring significant dividends and help revitalize the economy, which has suffered due to the COVID-19 pandemic.
Colombian Cannabis Donated for Scientific Research
At the end of June, Colombian startup Clever Leaves launched the “Project Change Lives” initiative to support scientists studying the medicinal properties of cannabis. The company is ready to provide 250,000 bottles of cannabinoid oil and 5 tons of cannabis, worth $25 million, free of charge to research organizations contributing to the development of new medical applications for cannabis. Only U.S.-based research institutions are eligible to apply for this cannabis.
The Nasdaq stock exchange began trading Clever Leaves shares in December 2020. In February, the stock price peaked at $20.95, but later dropped by 57%.
Stock Market Challenges and Future Prospects
The negative trend in the stock market was caused by unsatisfactory company performance. Last year, Clever Leaves earned $12 million, but due to high expenses, posted a net loss of $28.5 million. The only positive note is that the company managed to reduce its losses by 22% compared to 2019, when losses totaled $36.5 million. Clever Leaves’ management hopes that the legalization of cannabis exports will help the company turn a profit in 2021.