The Elixinol share price is flying today as the company released a statement surrounding the relaxation of CBD restrictions.
The post Why the Elixinol (ASX:EXL) share price popped 43% today appeared first on Motley Fool Australia. –
The Elixinol Global Ltd (ASX: EXL) share price soared today, after it was announced that the United Nations (UN) has rescheduled its classification of cannabis. According to the company, this is expected to favourably impact its global business.
The Elixinol share price went flying as a result, gaining 43.24% today. This takes shares in the company up to a price of 26 cents.
Today it was announced that the UN has officially rescheduled cannabis, after the UN’s Commission on Narcotic Drugs (CND) voted to accept the World Health Organization’s recommendation.
Moreover, the vote acknowledged the medicinal usefulness of cannabis and clarified that cannabidiol (CBD) is not under international drug control.
What now for Elixinol
As the company noted, the news is expected to have a substantial impact on Elixinol’s ability to drive product sales in Europe and other countries influenced by UN decision-making.
Nonetheless, it is just the latest signal in the global relaxation of regulations surrounding CBD. It follows last week’s landmark ruling from the EU’s highest court that CBD “does not appear to have any psychotropic effect or any harmful effect on human health.”
Elixinol CEO Oliver Horn was understandably pleased with the news, saying:
This is possibly the most important day for cannabidiol – or CBD since it was scheduled as a narcotic in 1961. Since that time, substantial resource has been deployed into understanding CBD and while we have long understood its significant therapeutic value, international scheduling has held it back. This UN vote recognises CBD’s potential, which we believe will positively impact Elixinol’s ability to conduct business in our key regions. Over the last two years we’ve already built a substantial base in Europe which has contributed significantly to our recent performance and from which we can now unlock new value. Given the significant influence of the UN, we also expect positive follow-on effects into other countries where we operate.
Investors are clearly also seeing the upside, with the Elixinol share price soaring by more than 43%.
Where to invest $1,000 right now
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.