India Globalization Capital, Inc. (NYSEAMERICAN: IGC), New Age Beverages Corp (NASDAQ: NBEV) and Tilray Inc (NASDAQ: TLRY) are all seeing gains in the market this morning, and for good reason. The DEA made an announcement that wil widen the target audience for all of these companies. Today, we’ll talk about:
- The DEA announcement;
- how it relates to IGC, NBEV and TLRY; and
- what we’ll be watching for ahead.
The DEA Reduces CBD To Schedule V
As mentioned above, some pot stocks are flying in the market this morning after news broke from the Drug Enforcement Administration (DEA). Previously cannabis, including any derivative of the plant, was classified as a Schedule I controlled substance. This meant that on a federal level, all aspects of the cannabis plant were considered to have the highest potential for abuse. This has changed for cannabidiol, often referred to as CBD. In recent news, the DEA reduced the schedule of CBD to a Schedule V, which means that the derivative of the cannabis plant is viewed by the DEA to have the lowest potential for abuse.
How This Relates To IGC, NBEV And TLRY
So, CBD is now a Schedule V substance, what does that have to do with India Globalization Capital, New Age Beverages and Tilray? Here’s why the news is sending these stocks up:
India Globalization Capital And CBD
IGC recently announced a commercialization and partnership agreement. Through this agreement, it will be commercializing several drinks, including the Nitro G energy drink. In the press release announcing the news, the company also said that it would be launching a formulation of the energy drink that includes CBD and potentially, other hemp-related additives. With the news from the DEA, this drink now has a far larger target audience, and the stock is climbing as a result. At the moment (10:07), IGC is trading at $5.91 per share after a gain of $1.31 per share or 28.48% thus far today.
New Age Beverages And CBD
Recently, New Age Beverages announced the launch of a product line of CBD-infused beverages. Therefore, the stock is headed up for the same reasons that we’re seeing gains in IGC. Currently, NBEV is trading at $4.48 per share after a gain of $0.39 per share or 9.54% thus far today.
Tilray And CBD
Tilray is an active company in both the coming recreational and medical cannabis markets in Canada and around the world. Recently, the company announced that it had received approval from the DEA to bring a cannabis related treatment over the border for use in a clinical study. With the news, TLRY now has a larger ability to tap into the medical cannabis market in the United States, which could prove to be a massive one for the company. TLRY is trading at $140.03 per share at the moment after a gain of $8.73 per share or 6.65% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on cannabis industry. In particular, we’re interested in following the story surrounding the changing laws within the industry and how thse changing laws will affect stocks like IGC, NBEV, TLRY and others. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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