Medical Marijuana Inc (OTCMKTS:MJNA): Revaluation Still Pending

Back on March 22, we highlighted Medical Marijuana Inc (OTCMKTS:MJNA) as a company to keep an eye on near term. Management had just put out an announcement related to the company's Mexico operations, and we felt that markets had missed the release (or at least, that is, the implications of it) and that this miss was a chance to pick up an exposure to a pending revaluation.At the time, Medical Marijuana traded for around $0.12 a share. At last count, the company went for $0.11. That's a dip, we know. Sometimes our expectations play out pretty quickly. Sometimes they take a while to materialize. In this latter instance, a catalyst is often required to get things moving.Well, we just got that catalyst.Before we get into what we're talking about, here's a bit of background. Medical Marijuana is a holding company with quite a few irons in the cannabis fire. One of these irons, however, and the focus of our previous coverage, is a subsidiary called HempMeds Mexico. There's a subsidiary just called HempMeds that Medical Marijuana set up to develop and distribute its medical marijuana products (generally non-THC, CBD-based products). This subsidiary distributes in the US. HempMeds Mexico, as the name suggests, is the distributor for these products in Mexico.So our previous thesis was based on the fact that one of Medical Marijuana's products, a CBD oil called RSHO-X, became the first and only cannabis product allowed for import into Mexico. Not only that, but that it was subject to a clinical study in a really tough to treat form of epilepsy called Lennox-Gastaut, and that the resulting numbers showed that 84% of children with epilepsy that were treated with RSHO-X halved the number of seizures they suffer experienced.We likened this to the breakthrough treatment (and subsequent approval in the US) for GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) – the company that markets generally regard as being the flag bearer for the cannabis (and in particular, the medical marijuana) space.And this is where the latest news comes into the picture.The Mexican Congress just passed legislation (on April 28) that legalizes the use of marijuana and cannabis for medical and scientific needs in Mexico. The bill, which overwhelmingly passed in a general floor vote with 371 in favor, seven against and 11 abstentions, will now be sent to Mexican President Enrique Pena Nieto to be signed into law. This is a market in which Medical Marijuana already has the one and only foothold from an international company perspective.The news of a freshly legalized market in the medical marijuana space is great for any company that sells medicinal cannabis products, of course. Analysts estimate that the CBD side of the market alone could be worth more than $12 billion, and not surprisingly, there's a raft of companies lined up to have a go at picking up a piece of the pie. Medical Marijuana, however, as things stand right now, has a jump on this raft. It's got the relationships and contacts in place to smooth transition into the freshly opened market, and while it's going to face domestic competition, a US producer is almost certainly going to have a perceived edge on things like quality and reliability.As we’ve said, this is only a small part of the company's operations at the moment. Readers wanting to catch up with the rest of what Medical Marijuana has to offer, and how it plays into a long term thesis, might want to check out our previous coverage here. Outside of HempMeds, the Axim Biotechnologies Inc (OTCMKTS:AXIM) is of particular interest in this regard.For a near term play, however, and based on our expectations of a revaluation catalyst outlined in the introduction, this one remains a potential runner.We will be updating our subscribers as soon as we know more. For the latest updates on MJNA, sign up below!Disclosure: We have no position in any of the securities mentioned and have not been compensated for this article.