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ECJ decides: Cannabis active ingredient CBD is not an addictive substance – huge opportunities for investors

Wednesday,
11/25/2020
14:58

from PERSONAL-FINANCIAL.COM editorial team

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In its ruling, the ECJ found that, unlike THC, CBD “apparently has no psychotropic or harmful effects” on the human body. In other words, CBD is neither a drug nor an anesthetic.


The judgment of the European Court of Justice is considered groundbreaking. It gives the opinion of the EU Commission a comprehensive rejection, according to which CBD is a narcotic in terms of the International Narcotics Convention. The federal government also agreed with this ruling.

It is now official: CBD is not an addictive substance and has no psychoactive effect. Therefore, the provisions for the free movement of goods within the EU apply.

The court ruled last Thursday that CBD products are allowed to be marketed and cannot be banned by one EU member state if they have been lawfully produced in another member state. This judgment applies to all products made from whole cannabis sativa plants, including the flowers and fruit heads.

Most recently, the EU Commission even sought to ban CBD, so that trade would only have been permitted as a prescription narcotic. This is off the table for the first time with the new judgment.

After a long period of uncertainty, this is finally a positive development and a clear statement on the cannabis and legal and over-the-counter CBD industry.

Europe is the second largest CBD market in the world

The market research company New Frontier Data, in collaboration with Deep Nature Project and Mile High Labs, published the third part of its publication series on CBD in Europe: “EU CBD Consumer Report Series: Market Size & Demand”

This report assumes that without regulatory changes, the EU CBD market will grow by 10.4% to 13.6 billion euros by 2025.

For 2020, the total annual spending on CBD in the EU is estimated at 8.3 billion euros. The current annual CBD expenditure in Germany is estimated at 1.83 billion euros, the highest annual expenditure for CBD in the EU.

Cannabidiol (CBD) is one of the many non-psychoactive cannabinoids found in the cannabis plant. CBD products have seen explosive growth worldwide in recent years. The versatility of CBD makes it an increasingly important ingredient in health and beauty products. It is also used in food and beverage products including oils, tinctures, teas, capsules, and balms, and as an ingredient in cosmetics & nutritional supplements.

The European cannabis market is a billion dollar market with extreme growth potential. Estimates see a market potential of 123 billion euros by 2028.

Over 740 million people live in 50 countries in Europe. That is twice as many residents as in the USA and Canada combined. The result is a rapidly growing demand for cannabis products and services across Europe.

The growth prospects are unbelievable: Industry experts estimate that sales for medical cannabis and cannabis in the recreational sector could increase to 123 billion euros by 2028. 65 billion of these are said to be used purely for leisure purposes.

It is very important to see that in Europe, as in the rest of the world, visibility and public acceptance are constantly expanding as new scientific discoveries increase the understanding of social and economic benefits.

Breakthrough in CBD long-term research

On November 23, 2020, Canopy Growth (NYSE: CANOPY) published the results of a study on the long-term effects of cannabidiol in the preclinical model “C. elegans ”. In it, Canopy announces that cannabidiol (CBD) at physiological concentrations has shown no degree of acute or lifelong toxicity or related liabilities! Instead, CBD extended median lifespan by up to 18 percent and increased late-life activity by up to 206 percent compared to the untreated controls within the study.

Studies on the acute and long-term exposure to CBD in physiologically relevant concentrations were investigated in the worm model Caenorhabditis elegans (“C. elegans”) on the basis that 60-80 percent of their genes are shared with humans and their comparatively short lifespan of 2-3 Weeks makes such studies possible.

Despite the widespread use of CBD, this is the world’s first analysis of lifelong toxicity studies to determine the effects – or potential effects – of long-term CBD exposure. It is a true milestone in research into the potential health benefits of CBD for wider use!

The fund management of the GF Global Cannabis Opportunity Fund invested in the cannabis company Canopy Growth as part of the asset allocation.

Background information on the fund:

The team of experts at <~text text="GF Global Cannabis Opportunity Fund"><~text text=" ">(WKN: A2P2FA) analyzes the trends in Cannabis and psychedelics sector and allocated to the most attractive companies of the two investment megatrends. The security selection process includes, among other things an in-depth analysis of the balance sheet and the technical situation of each share with clearly defined entry and exit points. A quick reaction to company and industry news is essential for sustainable investment success in this relatively young sector!

Trust the high level of expertise and many years of experienceThe fund management and you can read more information about the fund here.

Further information on the fund can be found on the website of IFM Independent Fund Management AG.

Brief profile of the fund:

Surname

GF Global Cannabis Opportunity Fund

Fund type

Undertaking for Collective Investment in Transferable Securities (UCITS / UCITS) /

(suitable as UCITS target fund)

ISIN

LI0507461338

WKN A2P2FA
Ticker Bloomberg CANABIS LE
Ticker Germany
Subscription fee Max. 5% (100% discount on the front-end load by smartbroker.de)
Use of success Accumulating
Management compensation 1.30% p.a.
Performance fee 15%, hurdle rate 6% and high watermark
UCITS asset manager First Personal-Financial.com Management Group GmbH
Depositary Lichtensteinische Landesbank AG
Management company IFM Independent Fund Management AG
Information point for investors in Germany Hauck & Aufhäuser Privatbankiers AG
Kaiserstrasse 24, D-60311 Frankfurt am Main

Risk notice:

Conflict of interest: The Canopy Growth mentioned in the article is currently in the fixed assets of the GF Global Cannabis Opportunity Fund.

All published information is for your information only and does not constitute investment advice or any other recommendation. Long-term experience and awards do not guarantee investment success. Securities are subject to market-related price fluctuations which the active management of the asset manager or the investment advisor may not be able to offset. This information cannot replace a consultation. All information has been provided with care and to the best of our knowledge based on the state of knowledge at the time of creation. Despite all care, the data may have changed in the meantime. Further information on opportunities and risks can be found on the website www.hanffonds.de and www.ifm.li. The sales prospectus and further information are available free of charge in German from the management company IFM Independent Fund Management AG (Link). The UCITS asset manager is First Personal-Financial.com Management Group GmbH, Munich. The depositary is the Liechtensteinische Landesbank AG.

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