Why Aurora Cannabis, Charlotte's Web, HEXO, and Sundial Growers Soared Today
Shares of several cannabis stocks soared today on news that Democrat and Republican representatives introduced a bill in the U.S. House of Representatives that would allow hemp-derived cannabidiol (CBD) products to be marketed as dietary supplements. Charlotte's Web Holdings (OTC: CWBHF) was the biggest winner, with shares jumping 16.2% as of 2:57 p.m. EST on Wednesday. Shares of Aurora Cannabis (NYSE: ACB) were up 11.7%, while HEXO (NYSE: HEXO) and Sundial Growers (NASDAQ: SNDL) rose 13.2% and 11.7%, respectively.
Investors have been concerned about the prospects for CBD sales growth since the U.S. Food and Drug Administration (FDA) issued a consumer update in November warning about the potential risks of CBD. This warning seemed to indicate that the FDA planned to take a hard stance against CBD food products. The consumer update was especially troubling for Charlotte's Web, the leader in the U.S. hemp CBD market.
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Source Fool.com
