Tiny pot stock Creso Pharma Ltd [ASX:CPH] is soaring today. The CPH share price is trading 22.22% higher at time of writing.
A huge boost for investors as the market eyes up this fascinating stock.
However, what is far more fascinating is the reason for Creso’s surge today. Rising higher on the back of a surprising and landmark decision from the UN…
Cannabis reclassified for good
As Creso notes, the UN has decided to reclassify cannabis. Removing it from the Schedule IV status that it has held since 1961.
Under Schedule IV, cannabis was treated as one of the most dangerous drugs. Sitting alongside other narcotics such as heroin. A severe judgement to say the least.
Now though, just over half a century later, the UN has turned a new leaf.
Cannabis will now move to Schedule I — the least restrictive schedule of the four. And while that still means the UN isn’t quite ready to remove it from the list entirely, it is a huge development. One that suggests the organisational body may finally be recognising cannabis’ medicinal potential.
For pot stocks like Creso, this is a huge sentimental win.
It proves yet again that the tide is continuing to turn. With more groups, governments, and individuals slowly realising the potential of this demonised drug. A drug that is rapidly cultivating a sizeable industry.
As Creso Director Boaz Wachtel notes:
‘The UN ruling to reclassify cannabis is a landmark decision and paves the way for the relaxing of cannabis drug classifications in large markets across the world.
‘The results of this vote follows 60 years of status quo, three years of scientific review by the world’s leading health organisations, two years of diplomatic discussions and considerable lobbying from NGOs.
‘I am proud and privileged to have been a part of a small group of dedicated activists that have fought for decades to reschedule cannabis. I am very confident that this decision will unlock a number of near term opportunities for Creso Pharma, and I look forward to working with the Board and management to unlock further value for shareholders.’
For shareholders that is certainly welcome news. As for how and when Wachtel hopes to ‘unlock’ this value though, remains to be seen.
After all, Creso investors have had a rough year. And now, more than ever, management needs to turn things around.
Hopefully this decision will help provide a catalyst for this goal.
What’s next for Creso?
The ongoing challenge for Creso is to continue to market and sell its established products. Largely revolving around a range of pharmaceutical and nutraceutical goods.
However, Creso also has cannabis-based products for cosmetics and animal wellbeing as well. So, they certainly have plenty of avenues to explore. It is simply a matter of seeing what sticks and what doesn’t.
With a little help from today’s exposure, they may be closer to making that happen.
For Money Morning
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