TGOD Stock: FDA Expedites CBD Regulations, but Will Shares Benefit?

TGOD stock

Since reaching a high of $5.48 CAD in March, shares of The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF) have declined rapidly. TGOD stock has lost roughly 40% in the last few months and now swaps hands for $3.28 at the time of writing.

But today, shares are rallying 2.18%—a reflection of a wider market trend that has seen the entire marijuana index pack on 1.37% in the last 24-hour period.

There are reasons for the bullish momentum. Will TGOD stock continue to climb?

What's Going on with TGOD Stock?

The entire market has been spurred on this week after the US Food and Drug Administration said it would expedite its efforts to create a regulatory framework for CBD. It has set early fall as a rough date to publish a report on its progress.

The acting chief information officer, Amy Abernathy, said in a series of Tweets that the agency is “expediting its work to address the many questions about cannabidiol."

She goes on to say that "this is an important national issue with public health impact and an important topic for American hemp farmers and many other stakeholders.

The Importance of CBD

Recognizing the importance of CBD regulation has given the entire sector a needed boost. With the FDA under pressure to devise rules sooner, it means companies like TGOD may be able to launch certain CBD-infused products much sooner.

It's important to note that at present in the US, companies are allowed so sell topicals and oils containing CBD as long as they don't make exaggerated health claims. The product line remains limited, however, due to regulation.

>> Why Cannabis Licensing Regulations Favor Established Cannabis Companies

TGOD Stock and the US

So where does The Green Organic Dutchman lie in all this?

The Ontario-based company made a sizeable leap into the US beverage space in May. It is now a co-founder and "strategic partner" in the newly formed Califormulations LLC brand.

Operating out of Georgia, the press release states that Califormulations will be:

"[S]erving global branded companies with concept-to-shelf beverage commercialization support including formulation development, technical services, in-house pilot-scale production, and contract manufacturing co-ordination."

The Green Organic Dutchman, through Califormuations, will launch TGOD-branded "organic hemp-based CBD beverages, as local laws and regulations permit."

With the FDA expediting CBD regulations, TGOD stock can only benefit. Hopefully, the company's first foray into the US market will be met with CBD-friendly rules, allowing for sales of its CBD-infused beverages to happen sooner rather than later.

What are your thoughts on this?

>> Read More Green Organic News

Featured Image: Canva

If You Liked This Article Click To Share