(NEW YORK)–FDA provided some insight on potential rules and frame work regarding CBD infusion in food & beverages at recent Hemp conference.
Lowell Schiller, the Principal Associate Commissioner for Policy at the Food & Drug Administration (FDA) addressed a hemp conference to outline some guidance on how they may regulate CBD infusion into food & beverages.
In short they made clear that CBD infusion in food & beverages remains illegal to sell over the counter without approval. Since CBD was labeled as a drug in past it would have to adhere to clinical trials and safety standards before being allowed to be sold to consumers.
Enforcement May Be Little For Compliant Players
Off hand this sounds really bad for CBD companies, and its is, but there may be some light on the horizon.
You may have been trading CBD stocks over the past few months and thought you bought a stinker of a stock, but that wasn’t totally true. What you had was real money sitting on sidelines waiting to see what the FDA would do since they are a federal agency, and over ride any state laws that currently stand.
But, as we all know, CBD products are already out there in mass, and even if the FDA wanted to crack down on this exploding industry they may not have the man power to do that.
So what what does this mean?
This means although currently they are saying CBD infused foods & beverages may be illegal, if the stock you are trading isn’t making any outlandish claims that CBD can cure certain diseases, and being conservative on their labeling, then you may be ok.
If the stock is claiming to cure a certain disease in their releases, or on their labels, then you should avoid those plays.
If the company is being more conservative in their claims, or just selling hemp oil as a supplement, then those are the best ones to be in right now.
Risks Remains, But So Does Value
This time last year CBD and cannabis stocks were wildly over valued during their epic run into Sept. 2018. But after that bubble burst, and the fear of FDA enforcement set in over past few months, CBD stocks now offer much more attractive discounts for traders looking for good entry points.
Sure risk remains with FDA stating such products are not currently legal, but their ability to enforce any recalls may be little to none. As a new framework comes into clarity this fall then CBD stocks may offer a reverse play of ‘sell on rumor, and now buy on the news’.
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Recent CBD Stocks News
Puration, Inc. (OTC: PURA) announced a financial update is scheduled for release on Thursday, August 22, 2019.
The company announced a $4 million revenue target for 2019, and that it has broke $1 million in sales for the 2018 fiscal year. The company demonstrated over a $1 million base annual revenue run rate in Q1 2019. The company also announced a $1.5 million order to produce private labeled CBD water that represents sales above and beyond its current distribution network sales.
Kali-Extracts, Inc. (OTC:KALY) reminded shareholders they own stock in a Cannabis biopharmaceutical company with GW pharmaceuticals potential.
Frederick Ferri, the CEO of KALY commented, “We are executing on these simple CBD extraction business strategies to sustain our primary biopharmaceutical development objectives. Next week, on Tuesday, when I provide shareholders with the latest updates on our cannabis extract biopharmaceutical developments, it is my intention to remind the market that we are first and foremost a cannabis extraction biopharmaceutical development company with solutions on par with, if not superior to, those of GW Pharmaceuticals.”
LinkRes Pets (OTC:LRSV) is an interesting CBD play as its core focus is on CBD pet supplements, which may place them in better position to ride under any new rules.
The Company announced the pending launch of their Lynks Pet CBD Water product, in conjunction with American Premium Water (OTC:HIPH) for August 29th on www.SingleSeed.com
CBD Stocks to Watch
CVSI CV Sciences
KGKG Kona Gold Solutions
NBEV New Age Beverages
HIPH American Premium Water
MCOA Marijuana Company of America
BKIT Biohemp International
RMHB Rocky Mountain High Brands
RLBD Real Brands
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