Aphria Inc (NYSE: APHA) has been in the midst of a rollercoaster ride as of late as a short report sent the stock falling, followed by a response that led to gains. Nonetheless, with the recent passing of the Farm Bill in the United States, all eyes are on cannabis stocks. However, not all will benefit from the Bill. So, the question here is, “Is APHA a farm bill winner?” Today, we’ll talk about:
- The farm bill and how it pertains to APHA;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
APHA And The Farm Bill
As mentioned above, many stocks, including Aphria, have seen gains as the result of the passing of the Farm Bill. However, not all canabis stocks will see benefit. Before we get into whether or not APHA may see benefit, let’s talk take a look at the hype surrounding the Bill.
What Does The Farm Bill Do For The Cannabis Sector?
The Farm Bill was passed by the Senate, ultimately leading to legal changes in the cannabis sector. In particular, these changes include benefits to help cultivators as well as a reclassification of a chemical derivative of the plan, known as CBD. As a result of the bill, CBD has been reclassified as a Schedule V substance. Previously, the chemical was a Schedule I substance.
The reclassification is key. Schedule I substances are considered by the United States government to be highly addictive and have no medical benefit. However, Schedule V substances are substances that the US government sees as having little to no chance of addiction or negative harm.
What This Means For APHA
When it comes to all cannabis stocks, this isn’t necessarily going to change things. After all, THC, cannabis flower, and products containing THC are still illegal on a federal level. However, for some, like Aphria, New Age Beverages (NBEV), and others that deal in CBD products, this is great news.
After all, with CBD being reclassified as a Schedule V substance, the production, manufacturing and sales of CBD and CBD-related products will become legal in the United States, opening the door to a wide audience for those who deal in the chemical.
For APHA, that’s great news. That’s because one of the company’s products is known as CBD Oral Solution. This is an oral solution containing CBD, the chemical that is now legal to sell in the United States. As such, APHA may see strong growth in the sales of this product.
What We’re Seeing From The Stock
Aphria is having an incredible day in the market today as investor interest with regard to cannabis stocks continues to fly high! As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:52), APHA is trading at $5.72 per share after a gain of $0.48 per share or 9.16% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on APHA. In particular, we’re interested in following the story surrounding the company’s continued work to expand its presence in the growing cannabis industry, as well as the sales of the CBD Oral Solution, which the company may start selling in the United States relatively soon. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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