For years, Colombia has been associated with some of the most dangerous drug cartels in the world. Pablo Escobar being an example of one. Drug Trafficking has been a well-known problem in this South America country and the government has finally answered back in hopes to rattle the cartels. Last year, Colombia President Juan Manuel Santos formally legalized medical marijuana for domestic use. The laws permit commercial cultivation, processing, and exporting medical marijuana products such as, oil and creams. Officials are hopeful that that the move to legalize cannabis will help fight against Colombia’s drug trafficking business.
Colombia’s health minister reported in an email, “ We think that Colombia can build a successful international business around the exportation of medical marijuana. He added, “The country is ready to participate in this emerging global market.”
One company that has positioned themselves for a first-mover advantage of these newfound laws is New Colombia Resources Inc (OTCMKTS:NEWC) joint venture Sannabis SAS. Sannabis SAS legally produces medical marijuana products in the Republic of Colombia. The company was formed in April 2014 before the new laws were implemented giving Sannabis a first mover advantage. The company has made several key announcements that have solidified their position in this rapidly growing space.
On July 20th 2016, New Colombia Resources release a press release announcing that Sannabis products were showcased at first ever-medical marijuana co-operative that included Colombia’s Minister of Justice and Health in attendance along with 52 additional indigenous families. The company’s most recent press release on July 27th 2016, the company announced Sannabis would work with a non-profit organization called CORPROPAZ to develop hemp fields throughout different areas of Colombia to launch a pilot program to create new industries.
With Sannabis already having a presence in the medical marijuana products industry and now expanding to the rapidly growing hemp industry the company has created another revenue to help their company grow. According to ArcView Market Research, the market for legal marijuana in the United States is projected to grow to $7.1 Billion in 2016. This can present an opportunity for Sannabis to export their products and now hemp products into the U.S. where they are growing it at a cheaper price and able to sell it for a premium in the U.S.
As of Friday August 5th 2016, NEWC is currently trading between price levels of $0.012-$0.015. The last time NEWC was trading at these current levels back in April of this year the stock jumped to 52-week highs of $0.05. This could present investors with an opportunity to capitalize off of some of the crucial events happening in the U.S. in the coming months such as the Presidential elections and the DEA vote to re-schedule cannabis. New Colombia’s Sannabis seems primed to take advantage of a growing popularity of medical marijuana in Colombia.