Why Charlotte's Web Stock Rocketed Higher Today

Shares of Charlotte's Web Holdings (OTC: CWBHF) were off to the races Thursday, surging by as much as 22.2% during morning trading. As of 12:38 p.m. EDT, the stock was still up by more than 15%.

The passage of a new California law cleared the way for the company to increase its sales of CBD-based products in the country's most populous state.

In a press release that dropped early Thursday, Charlotte's Web said it would expand its retail distribution in California in response to the passage of Assembly Bill 45 (AB45), which "formally permits retail sale of products containing hemp-derived cannabidiol (CBD), including dietary supplements, topicals, over-the-counter, and pet products."

Source Fool.com