- Creso Pharma (CPH) will benefit from a new ruling on cannabidiol (CBD) products in Europe
- The Court of Justice of the European Union (CJEU) has ruled that CBD is not a narcotic and therefore can be freely sold in the European Union
- This new ruling opens doors for Creso, which it will look to capitalise on immediately
- The CBD market in Europe is expected to grow to at least €1.5 billion (around A$2.4 billion) by 2023
- On the market today, Creso is up 17.1 per cent and is trading at 4.1 cents per share
Creso Pharma (CPH) shares are rising after a new ruling on cannabidiol (CBD) products, unlocking major potential for the company in Europe.
The Court of Justice of the European Union (CJEU) has ruled that CBD is not a narcotic as it does not appear to have any psychotropic effect or any harmful effect on human health. As a result, CBD can now freely be sold in the European Union.
The ruling was put into place after a situation where parties produced hemp CBD products in the Czech Republic, which were then imported into France for use in other products. Criminal proceedings then began because the French legislation only allows for fibre and hemp seeds to be put to commercial use.
However, it was determined that the legislation did not apply to CBD obtained from a whole hemp plant as it was not listed as an agricultural product and therefore hemp CBD products are not restricted by the relevant legislation.
"In arriving at the decision, the CJEU noted that, according to the current state of scientific knowledge, the CBD involved doesn’t appear to have any psychotropic effect or any harmful effect on human health and therefore cannot be classified as a narcotic drug," the company explained.
This new ruling opens doors for Creso, which will look to capitalise on the milestone immediately.
According to Orian Research Group, the CBD market in Europe is about €450 million (around A$728 million), representing 31 per cent of the global CBD oil market share. The market is expected to be worth at least €1.5 billion (around A$2.4 billion) by 2023.
"The decision by the CJEU unlocks a number of significant opportunities for Creso Pharma, in a market that the Company already has an established
presence," Non-Executive Chairman Adam Blumenthal said.
"The European market has always played an important role in the Company’s growth trajectory and the most recent regulatory shift will allow us to continue to progress a number of near term initiatives, engineered to unlock value for shareholders," he added.
On the market today, Creso is up 17.1 per cent and is trading at 4.1 cents per share at 1:01 pm AEDT.