Reports surfaced this week that Charlotte's Web Holdings (TSX:CWEB) (OTCQX:CWBHF) has secured a patent for a hemp strain, marking this as the first US patent for a hemp plant. First reported on September 13 by Leafly, Charlotte's Web stock is down Tuesday, around 3%.
Here's what we know about the patent.
Charlotte's Web Stock Down Despite US Patent
The United States has granted Charlotte's Web Holdings a patent for a strain of hemp, described as a patent for “a new and distinct hemp cultivar designated as ‘CW2A." The strain itself is described as “a hardy plant, resistant to cold and capable of producing up to 6.24% CBD and only 0.27% THC.”
There are two benefits of the strain having THC levels of less than 0.3%. First, it means the strain can be considered hemp, making it federally legal. Second, because most plants have around 3% CBD, Charlotte's Web Holdings' strain has more than double the amount. And people are recognizing the significance of the patent, with Avis Bulbulyan, CEO of SIVA Enterprises, being one of them. According to Bulbulyan, several hemp brands have catchy logos but generic products. "There's nothing proprietary about it," he explained. However, when a company has a patent, that changes the game.
>> MJNA Stock Jumps: Agreement with Online Marketplace Dr. Cannabis
It's a big deal, but Charlotte's Web stock is performing in a way Tuesday that tells a different story. Things could change tomorrow, though. After all, Charlotte's Web is now known for not just cultivating high-CBD strains, but for receiving the first patent in the US for a cultivar of hemp.
According to Yahoo Finance, as of 11:18 AM EDT, Charlotte's Web stock is trading at $17.03, which puts it down 0.84%.
Takeaway
What do you think about Charlotte's Web receiving a patent for a strain of hemp? Do you think it could cause Charlotte's Web stock to see an upward trend? Let us know your thoughts in the comments below.
>> Read More Charlotte's Web News
Featured image: Canva
