The Elixinol Global Ltd (ASX: EXL) share price soared today, after it was announced that the United Nations (UN) has rescheduled its classification of cannabis. According to the company, this is expected to favourably impact its global business.
The Elixinol share price went flying as a result, gaining 43.24% today. This takes shares in the company up to a price of 26 cents.
Image source: Getty Images
What happened
Today it was announced that the UN has officially rescheduled cannabis, after the UN's Commission on Narcotic Drugs (CND) voted to accept the World Health Organization's recommendation.
Moreover, the vote acknowledged the medicinal usefulness of cannabis and clarified that cannabidiol (CBD) is not under international drug control.
What now for Elixinol
As the company noted, the news is expected to have a substantial impact on Elixinol's ability to drive product sales in Europe and other countries influenced by UN decision-making.
Nonetheless, it is just the latest signal in the global relaxation of regulations surrounding CBD. It follows last week's landmark ruling from the EU's highest court that CBD "does not appear to have any psychotropic effect or any harmful effect on human health."
Management comment
Elixinol CEO Oliver Horn was understandably pleased with the news, saying:
This is possibly the most important day for cannabidiol – or CBD since it was scheduled as a narcotic in 1961. Since that time, substantial resource has been deployed into understanding CBD and while we have long understood its significant therapeutic value, international scheduling has held it back. This UN vote recognises CBD's potential, which we believe will positively impact Elixinol's ability to conduct business in our key regions. Over the last two years we've already built a substantial base in Europe which has contributed significantly to our recent performance and from which we can now unlock new value. Given the significant influence of the UN, we also expect positive follow-on effects into other countries where we operate.
Investors are clearly also seeing the upside, with the Elixinol share price soaring by more than 43%.
