Thailand legalizes medical use of cannabis, opens up a new region for pot stocks

After Uruguay and Canada, Thailand has now amended its drug law to legalize marijuana for medical purposes. However, unlike the other two counties, legalization does not apply to recreational use.

After the parliament voted to push the bill, one of its lawmakers called it a “New Year gift to the Thai people.”

Ironically, South East Asia is a region that prescribes the toughest penalties for drug-related offenses. In Indonesia, Singapore, and Malaysia, weed-related offenses may lead up to capital punishment.

This is great news for companies involved in medical marijuana research including Tilray (TLRY), Canopy Growth (CGC), Aphria Inc (APHA), Innovative Industrial Properties (IIPR) and KushCo Holdings (KSHB). The companies currently concentrate most of their in Canada, where marijuana was legalized in October this year.

Shares of most cannabis stocks opened higher on Wednesday during pre-market trading.

The legalization not only opens up a new market for these companies but also a gateway to a much bigger region.

According to the Bangkok Post, pot users will be allowed to carry only prescribed amounts that are required for medical use. The consumers will also need to furnish a recognized certificate to authorities as sale and production of weed will be in a controlled manner.

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Research shows that marijuana is effective in pain relief, besides the treatment of nausea caused due to chemotherapy. Clinical studies are underway to study the other medical applications of marijuana.

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