It wasn’t good news late last month for Cannabis stocks. After the US Food and Drug Administration (FDA) issued health warnings over CBD, cannabis stocks tanked. The stocks are now recovering.
Several publicly traded pot firms dropped after the FDA released a scary new list of health warnings directed towards consumers.
According to the FDA, the cannabis ingredient which has been used and promoted to relieve pain and anxiety without getting people high may cause liver damage, “changes in mood,” and “gastrointestinal distress,” among other ailments.
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“Cannabidiol, or CBD, is a compound derived from the cannabis plant that is believed to be nonintoxicating. It has proliferated in drinks, cosmetics, foods and many other consumer products, even in states where marijuana is not recreationally or medically legal, including being sold in major retail chains such as CVS Health Corp, Walgreens Boots Alliance Inc., and Rite Aid Corp.,” Market Watch reported.
And with the FDA update, pot stocks plunged.
“It was the FDA’s first warning ever about the potential health risks of CBD-infused products like lotions and beverages — raising concerns that the agency could crack down on the substance despite Congress removing the marijuana derivative from a list of illegal substances last year,” The New York Post reported.
Among the cannabis stocks that were hit were Canadian pot companies like Aurora Cannabis, which after the FDA announcement closed down 5 percent to $2.30 a share and Cronos Group shares fell 2.3 percent to $6.74. Also, British Columbia-based Tilray had its shares drop 3.5 percent to $20.05 a share and Canopy Growth Corporation’s stocks went down 1.8 percent to $18.11 a share.