Last week, the California Assembly Appropriations Committee unanimously passed Assembly Bill 228. This week, CV Sciences, a Las Vegas-area cannabis company, announced its full support of the committee's decision; a move that seems to be working in favor of CVSI stock.
Here's what we know.
CVSI Stock: The Latest
It's not surprising to see CVSI stock trading up after CV Sciences (OTCQB:CVSI) announced its support for Assembly Bill 228. Last week, the California Assembly Appropriations Committee passed Assembly Bill 228, which, according to Yahoo Finance, permits the retail sale of hemp-derived cannabidiol in supplements and foods. And of course, this impacts CV Sciences as the company manufactures hemp CBD products through its PlusCBD Oil brand.
While the legislation still needs to be approved (it's en-route to the full Assembly), CV Sciences is still benefitting from announcing its support of last week's unanimous vote.
According to Yahoo Finance, as of 1:11 PM EDT, CVSI stock is trading at $4.87; this puts CVSI stock up 7.41%.
But maybe the jump CVSI stock is experiencing today has less to do with the actual passing of Assembly Bill 228, and more to do with the perspective CV Sciences has taken on it. According to CEO Joseph Dowling, “the unanimous vote last week reflects broad support to clarify the law." He also said the vote allows "Californians to continue to have access to and experience benefits from quality hemp-derived CBD products."
Long-Term Impacts
The hemp industry is growing at a rapid rate. Many have forecasted it will continue to do so for a while, and the unanimous passing of Assembly Bill 228 will likely help make those predictions come true.
But will CVSI stock continue to benefit from the news? Let us know what you think in the comments below and don't forget to follow along with this story over the next few weeks!
Featured image: DepositPhotos
