Cannabis Stock News

Cannabis stocks are the big topic of discussion in the market this week, and for good reason. Investors are awaiting the results of an FDA hearing that will decide how to legally handle cannabis and its popular derivative, CBD in the United States.

The hearing is scheduled to take place on Friday, May 31, 2019 and will be open to the public. This is the next step along the road to legalize cannabis and its derivatives, a vehicle that was put into motion with the passing of the 2018 Farm Bill.

While the bill does not include the legalization of cannabis, it does include the legalization of the growth, cultivation, processing and sale of hemp. Although there is a bit of confusion, CBD was not legalized as part of that bill. Instead, CBD was moved under the purview of the FDA.  

CBD is gaining traction in the United States as it is believed to carry a wide range of health and wellness properties. While not a lot of research has been done surrounding CBD as of yet, the chemical is commonly being used as a digestive aid, a treatment for epilepsy, a treatment to reduce the spread of cancer, and more.

Interestingly, CBD-related companies may have a bit of a headache to deal with following the hearing. After all, when the FDA was handed the task of regulating the compound, it immediately said that companies could not add the ingredient to food or beverages. There’s a strong argument suggesting that this will remain the case.

Ultimately, the argument suggests that adding CBD to food and drinks in the United States would undermine the work done by GW Pharma. Let’s not forget, GW Pharma recently became the first company to receive a cannabis-based drug approval from the FDA with its Epidiolex treatment, a treatment for severe forms of childhood epilepsy.

Although Friday’s hearing is not expected to produce any concrete results, it is an important step in not only the CBD discussion, but also the overall cannabis discussion. After all, this will give the different stakeholders of the conversation a highly public forum in which to state their views, drawing attention to the issues that they see as critically important.

During the hearing, it is expected that the following topics will be discussed:

  • Use – The potential benefits of using cannabis and its derivatives will likely take center stage.
  • Safety – Any potential safety concerns to those using, or those in contact with those using cannabis or its derivatives will likely be discussed.
  • Access – It is also expected that we will hear conversation surrounding the safe access to beneficial dietary supplements by consumers.
  • Investment Protection – Finally, the hearing will also start the conversation surrounding the protection of investments made by pharmaceutical companies in the development of cannabis-derived treatments.

Positive Pre-Hearing Developments

While we await the FDA hearing, there has been a big positive development for those that are looking for widespread legalization of cannabis and CBD. In fact, over the Memorial Day weekend, the Transportation Security Administration, commonly referred to as the TSA changed its stance on hemp-derived CBD over Memorial Day weekend.

As a result of new TSA regulations, hemp-derived CBD may now be present in carry on or checked luggage at airports. The TSA said that it will allow products or medications that include hemp-derived CBD “as long as it is produced within the regulations defined by the law under the Agriculture Improvement Act of 2018.

What’s Going On In Cannabis Stocks Today?

As we await the FDA’s hearing on CBD, we’re seeing quite a bit of activity among the popular cannabis stocks. Here’s what’s happening today, (Tuesday, May 28, 2019):

  • Hexo Corp. (NYSEAMERICAN: HEXO): Up nearly 6% in mid-day.
  • Acreage Holdings (OTCMKTS: ACRGF): Up more than 1% in mid-day.
  • MeldMen Enterprises Inc. (OTCMKTS: MMNFF): Up nearly 4% at mid-day.
  • Tilray Inc. (NASDAQ: TLRY): Down under 1%.
  • Aurora Cannabis (NYSE: ACB): Seeing slight gains of less than half a percent.
  • Cronos Group Inc (NASDAQ: CRON): Up almost 3%.
  • GW Pharmaceuticals PLC (NASDAQ: GWPH): Seeing slight gains, just over half a percent.
  • Aphria Inc (NYSE: APHA): Started in the green, now down less than half a percent.
  • Veritas Farms Inc (OTCMKTS: VFRM): Started in the green, now down just over 1%.

Final Thoughts

With the FDA hearing that will play a big role in deciding the fate of CBD in the United States just around the corner, cannabis and CBD investors are on the edges of their seats. No matter how this goes, we’re likely to see strong movement as the FDA hearing takes place. So, keep your eyes peeled for opportunity.

What Do You Think?

Do you think that the FDA will take a more accepting or rejecting tone during Friday’s meeting? Why? Join the discussion in the comments below!

2 COMMENTS

  1. I exited my pot stocks last week to play things safe. No way will they reverse decision on cannabis plant for the med of it considering epidiolex, and I do think they can take a hard line with the synthetic and wellness of it, hemp aside. I agree, just about all “pot” stocks will be affected by the outcome of the Town Hall. I’ll be waiting to get back into any pot stocks after the FDA put’s some news on the wire resultant of the meeting.
    Still wish you would do a write-up on PULM. Even more so now that Cipla is in their picture and the recent shift in management. Thanks for your articles. Truly enjoying them!

    • Thanks for the input, I don’t see a reversal either. Nonetheless, either way this goes, it will be a wild ride. Thanks again for joining the discussion, Larry.

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