If you're travelling from Canada, Holland, certain US states, or any other parts of the world where recreational cannabis use has been legalised, step carefully if you plan to visit Japan.
Japanese courts continue to enforce strict laws surrounding the use of cannabis, which can see an offender sent to prison for up to 5 years for personal use.
Of more concern to international travellers who may have consumed marijuana in a legal jurisdiction outside Japan, earlier this year, the Japanese government debated making it a crime for people to have THC inside their bloodstream.
Fair warning Tokyo residents, you may want to steer clear of Amsterdam once COVID travel restrictions are lifted.
Japanese government's pot stock hypocrisy
If a national government condemns the use of cannabis, should it invest in pot stocks?
While the principled answer appears to be 'no', that hasn't stopped Japan's Government Pension Investment Fund from snapping up some US$80 million (AU$103 million) worth of shares in 3 cannabis companies trading on Canada's Ontario stock exchange.
As Bloomberg reports:
Financial disclosures show Japan's Government Pension Investment Fund (GPIF) accumulated stakes totaling some $80 million in at least three pot companies.
With 1.7 million shares of Canopy Growth Corp, which trades on the Ontario stock exchange under the ticker WEED, the fund would be among the top 12 holders of the recreational marijuana dealer.
Now granted, US$80 million is just a tiny fraction of the Japanese Government Pension Investment Fund's US$1.6 trillion in assets.
But still.
So why the seeming hypocrisy?
According to the government pension fund's spokeswoman Nao Honda, "We are dedicated solely to ensuring long-term returns for our members."
Gotcha. Show me the money!
Now the Japanese Government Pension Fund hasn't invested in any ASX listed pot stocks. At least not yet. But there are a growing number of them blooming on the ASX. (Sorry, couldn't resist.)
Two leading ASX pot stocks
There are a number of cannabis companies listed on the ASX.
Some are focused on hemp production, which produces no THC. That's the compound in cannabis that gives users the 'high'.
Others are primarily focused on medicinal marijuana, which has the green light in Australia. And still others are involved in the recreational side of cannabis use in the legal markets, such as Canada.
Cann Group Ltd (ASX: CAN), for example, cultivates cannabis for both medicinal and research purposes. At the current price of 59 cents per share, Cann Group has a market cap of $162 million. The Cann Group share price closed at 59 cents today, up 1.72% in intraday trading today and down 1.7% in 2021.
Creso Pharma Ltd (ASX: CPH) develops pharmaceutical-grade cannabis and hemp-based products to treat human and animal health issues. Creso has finished the day's trading at 22 cents per share, giving it a market cap of $215 million. The Creso Pharma share price is down 4% at the time of writing and up 22% year-to-date.
