Weekly cannabis stock report scares CBD investors

The cannabis industry is expected to triple in the next five years, and many investors are looking to profit. As the United States and some other countries decriminalize or legalize cannabis, there are loads of opportunities for entrepreneurs and existing companies. CBD is the main ingredient in many products sold in the rapidly growing market and many cannabis stocks are involved in CBD trade.

Investors are probably grateful that there are only a few weeks left in 2019 for cannabis stock reports. 

It was a difficult year for them, with cannabis investments losing value due to a myriad of negative factors. This includes supply problems in Canada and high taxation of cannabis in the United States.

The hemp news application Hemp.im will provide you with the latest news in the cannabis sector. Stay in-the-know with our fresh info that is updated regularly.

FDA brings bad news to cannabis stock reports

Among some consumers, CBD-based products have been very popular. This is because CBD is supposed to be useful for a range of medicinal uses.

However, this is not the general opinion of the FDA. The federal health industry regulator has issued an unfortunate update to its guidelines on CBD. The document states, “people may mistakenly believe that trying CBD can’t hurt.”

The document by the federal health industry regulator listed a series of potentially harmful effects associated with CBD consumption, including liver damage, reproductive toxicity in humans and various forms of gastrointestinal distress.

The FDA pointed out that there is a lot of unknown information about the effects of CBD on the body and mind.

This is an important reason why the document has approved the compound for only one drug, GW Pharmaceuticals’ (NASDAQ: GWPH) Epidiolex, used to treat two relatively rare forms of epilepsy.

Cannabis stock reports have been benefiting from CBD’s medical properties

Meanwhile, CBD is the main ingredient in many products sold in the rapidly growing market for cannabis products. It has been found in oils, ointments, sleeping pills, and many other products.

The vast majority of these products “have not been evaluated by the FDA to determine whether they are effective in treating a particular disease or have other effects that could be claimed,” it said in the updated instructions.

“In addition, they have not been evaluated by the FDA to determine what the appropriate dosage is, how they could interact with other drugs or foods, or if they have dangerous side effects or other safety problems,” the document stated.

Since many cannabis stocks are involved in the CBD trade, most fell in share price (with the exception of GW Pharmaceuticals, which is the only manufacturer of CBD-based drugs approved).

Investors and those interested in seeing better cannabis stock reports, should not panic. The FDA added that it has been working on deepening its knowledge of the substance.

Cannabis 2.0 still promising for investors

There are reasons for the market to be optimistic about cannabis stock reports, despite the many challenges facing the cannabis sector.

Cannabis 2.0 is a great example, with the Canadian federal government legalizing the production and sale of by-products such as cannabis-based drinks and gummy candies.

Last week Canopy Growth announced that a beverage production and development facility located at its Ontario headquarters had received a secure and operating storage permit from the Canadian government.

Once receiving the crucial permit it immediately launched production of a new line of cannabis-infused beverages, 11 in total, using a proprietary method called distilled cannabis. Canopy Growth said these libations will be available to consumers “within weeks.”

__

(Featured image by SeaweedJeezus via Pixabay)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Hemp.im, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in Jambon Burst, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Hemp.im assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Hemp.im is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.