Charlotte's Web stock sunk to a yearly low over the weekend after the FDA warned 15 firms that CBD products may not be as safe as the general public seems to think.
Booming CBD Market
The explosion of the CBD market both in North America and across the globe in recent years has been hugely impressive, with analysts claiming that the US market could surpass $20 billion USD by 2024. As a result, CBD focused companies, such as Charlotte's Web Holdings (TSX:CWEB) (OTCQX:CWBHF), have seen their share value rocket, with Charlotte's Web stock up nearly 180% in the seven months following its IPO in September 2018. This growth was further boosted by the passage of the updated Farm Act last year, which federally decriminalized the cultivation of hemp plants and the sale of CBD products.
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Charlotte's Web Stock Trades Near Lows
Now, the seemingly endless upward trajectory for CBD stocks has hit a bump in the road. The Food and Drug Administration agency has warned 15 companies in the US that CBD companies may not be as safe as they are telling their customers. CBD has been widely touted as a harmless treatment for a broad range of ailments, from anxiety to muscle soreness, without a great deal of evidence to back up those claims. Despite not actually being named on the list of 15 firms, Charlotte's Web stock dropped to a 2019 low of $11.40 to see out the week.
“We remain concerned that some people wrongly think that the myriad of CBD products on the market, many of which are illegal, have been evaluated by the FDA and determined to be safe, or that trying CBD ‘can’t hurt,’” FDA Principal Deputy Commissioner Amy Abernethy said in a statement today. She added that the FDA said it “has seen only limited data about CBD safety and these data point to real risks that need to be considered before taking CBD for any reason.” Charlotte's Web stock is currently trading for $11.79.
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