CannTrust (CTST) Stock Rallies On FDA News

CannTrust CTST Stock News

CannTrust Holdings Inc (NYSE: CTST) is making a run for the top in the market this morning. However, with no press releases or SEC filings issued this morning, many are wondering why the stock is up more than 13.5% as we head toward mid-day.

The gains follow an announcement made by the FDA surrounding its decision with regard to CBD, and CTST isn’t the only stock that’s headed up as a result. In fact, the news seems to be sending cannabis stocks across the board to the top. Here’s what’s going on:

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CTST Heads Up On FDA News

Most cannabis stocks are making their way up in the market today after the FDA said that it is speeding up its process with regard to regulatory framework for CBD. In fact, the regulatory body said that it expects to publish a report on its progress by no later than early fall.

The news came through a series of tweets sent to the public on Friday. The series of tweets included three separate posts in which Amy Abernathy, acting information officer at the FDA, addressed the CBD topic. Here’s her series of tweets:

At the moment, the FDA is working to comb through comments offered by more than 100 speakers that presented at a public hearing on the topic on May 31, 2019. In the tweets, Dr. Abernethy urged anyone who still plans on submitting information to do so by tomorrow, July 16, 2019.

Of course, CTST and other cannabis stocks would benefit greatly should the results of the FDA’s review allow for the sale of cbd-infused products throughout the United States.

CBD is a non-psychoactive ingredient found in cannabis. It is widely believed to have wellness properties that treat pain, inflammation, anxiety and more.

While we know that due to the GW Pharmaceuticals cannabis based drug, epidiolex, the FDA is not likely to allow for CBD to be used in edibles. After all, it is the active ingredient in the recently approved drug for epillepsy.

Nonetheless, there are other uses for CBD. In particular, CTST and other cannabis companies are hoping for the FDA to approve the use of the cannabis-derived chemical in topical and other products to address pain, inflammation and anxiety.

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Final Thoughts

With the FDA expected to publish a CBD-related report soon, cannabis companies and investors are on the edge of their seat. Nonetheless, there’s a strong chance that the FDA will allow for the use of CBD in topicals and other products, opening the door to a strong stream of revenue in the United States for CTST and others in the space. So, keep a very close eye on this story!

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