Why Marijuana Stock Cronos Group Shot 8%Higher on Friday

What took place

The stock of Cronos Group( NASDAQ: CRON) ended the week on a high note, increasing more than 8%on Friday to outmatch the gains of the wider market. The driver appeared to be numerous media reports of a medical study indicating cannabidiol (CBD) may be helpful in battling COVID-19 Cronos has a significant CBD property in its Lord Jones product line.

So what

Although the results of the study, carried out by researchers at the University of Lethbridge in Canada, were released last month, they are just now hitting the news media and getting on the radar of investors.

The findings are very appealing for CBD, a compound in marijuana and especially in hemp that apparently has medical residential or commercial properties. The Lethbridge research study indicates that it helps obstruct “pathway” proteins that COVID-19 utilizes to go into host cells.

The researchers highlighted that this is only an initial research study, and more research study is needed.

Amongst cannabis business, Cronos sticks out somewhat for having a dedicated CBD product line. It bought U.S. CBD items specialist Lord Jones in 2019; these days, the subsidiary is responsible for more than a quarter of the company’s net revenue after excise taxes.

Now what

We should keep in mind that the Lethbridge research study has actually not yet been peer evaluated, a crucial step with such research study. The scientists are presently seeking funding to broaden their task. Anybody purchased or tracking the development of cannabis stocks ought to certainly watch on developments with this research, and any comparable efforts that may be released.

Eric Volkman has no

position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks discussed.”>