New Age Beverages stock got a bit of a boost today as the company prepares to launch its upcoming cannabidiol (CBD) drinks.
According to New Age Beverages (NASDAQ:NBEV) CEO Brent Willis, the company is preparing to show off its new line of CBD drinks next week. It will be doing so at the North American Convenience Store Show taking place in Las Vegas.
While that’s good news for New Age Beverages stock, it isn’t the major launch that some investors may be hoping for. Instead, the company is still talking to retailers about selling the drinks in states where they are legal. This will result in a larger roll out in Spring 2019.
New Age Beverages says that everything it is doing is in preparation for a much larger release of its CBD oil drinks. The company expects the U.S. government to legalize the drinks in all states in the future. If it does, the company says that it will be one of the few ready to take advantage of the situation with its reach, reports Bloomberg.
What’s really holding back New Age Beverages stock at the moment is the illegal state of recreational marijuana in the majority of the U.S. This includes all components of the drug, such as CBD oil. However, CBD isn’t psychoactive. That component of weed is tetrahydrocannabinol (THC).
It’s taking time, but the negative association surrounding marijuana use is being distanced from CBD. This includes a recent shift from the U.S. Food and Drug Administration concerning CBD. It has given approval to GW Pharmaceuticals (NASDAQ:GWPH) for Epidiolex, which contains CBD.
NBEV stock was up 1% as of Friday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.