Sativa Wellness Group Inc (LON:SWEL) has hailed a ruling from the European Court of Justice (ECJ) which it said “opens the door for high quality, compliant [cannabidiol] companies to operate in markets across the EU”.
The Aquis-listed firm, which distributes and sells CBD products throughout the UK and EU, welcomed the ECJ ruling that CBD is not classified as a narcotic drug and that a French ban on hemp derived CBD contradicts EU law.
Sativa also said its product range is on track to meet a March 2021 submission deadline for the UK Food Standard’s Agency’s (FSA’s) Novel Foods accreditation, which it said should now be “an easy transition” to the European FSA Novel Foods accreditation.
"We welcome the news of the EU's highest court ruling. As a UK and European company that is committed to working with regulators and delivering the highest quality CBD wellness products, this news helps to enable our expansion plans”, Sativa chief executive Henry Lees-Buckley said in a statement.
“We currently own extraction and production capabilities in Europe and see this large market as a key driver for our growth for not only our CBD isolate and distillate ingredients, but also for our Goodbody CBD brands!", the CEO added.
Shares in Sativa were trading at around 4.2p on Tuesday morning.
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