Crackdown on CBD
Yesterday, the New York Times reported that the Department of Health and Mental Hygiene had ordered restaurants under its jurisdiction not to sell food products containing CBD. The health department added that eateries in New York are not allowed to add anything not proven to be safe, which includes CBD.
CBD is a non-psychoactive chemical compound closely related to tetrahydrocannabinol or THC, the main component of cannabis. CBD doesn’t get consumers high, and it has become popular over the last few years to treat anxiety, pain, inflammation, and insomnia. CBD is derived from hemp, which was legalized at the end of 2018. However, the FDA published guidelines that do not allow CBD to be added to food and drink products.
The crackdown on edible CBD products isn’t restricted to New York City. Health officials in Maine and Ohio are also asking eateries and retailers to remove CBD-infused edible products from their offerings.
The crackdown on edible CBD products appears to have led to a fall in cannabis companies’ stock prices. From the above graph, you can see that only two of the nine cannabis companies we’ve considered were trading in the green today around 1:15 PM ET.
The Green Organic Dutchman Holdings (TGODF), Planet 13 Holdings (PLNHF), and Wayland Group (MRRCF) saw major losses with their stock prices falling 6.5%, 5.9%, and 5.3%, respectively.
VIVO Cannabis (VVCIF), Trulieve Cannabis (TCNNF), MedMen Enterprises (MMNFF), and Acreage Holdings (ACRGF) had fallen 3.2%, 2.9%, 2.8%, and 2.3%, respectively. Only Curaleaf Holdings (CURLF) and iAnthus Capital Holdings (ITHUF) were trading in the green, with their stock prices rising 0.5% and 6.5%, respectively.