- UN removes cannabis from a convention that treated it as a harmful substance
- Several ASX cannabis stocks rallied yesterday off the back of the news
- Stockhead spoke with several cannabis executives yesterday about the news
- 5 reasons stood out: paving the way for further reform, validating cannabis as a medicine, the potential for a larger market with less red tape, the potential for more research and capping off a great year for the sector.
The ASX cannabis sector got yet another boost yesterday after waking up to a major UN decision.
Overnight on Wednesday, the United Nations formally rescheduled cannabis, culling it from Schedule IV of the 1961 Single Convention on Narcotic Drugs.
This document had classified cannabis as a harmful and addictive substance along with heroin and cocaine among others.
The broader cannabis sector lauded the move and investors did too sending many cannabis stocks up.
Stockhead spoke to six cannabis industry executives yesterday about why this decision was such a big deal. There were five broad reasons why.
1. Paves the way for further reform
While this may seem merely symbolic for now, it has been argued this could be a catalyst for further reforms at nation state levels. The biggest jumper was a stock whose co-founder played a major part in this move.
Creso Pharma’s (ASX:CPH) Boaz Wachtel told Stockhead yesterday he was involved in this move by submitting research papers to the Commission of Narcotic Drugs. He also attended a number of UN Drug Convention meetings in Vienna.
“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,” Wachtel said.
“The result 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.”