Elixinol Global Ltd (ASX:EXL) (OTCMKTS:ELLXF) (FRA:E8M) is encouraged by a United Nations decision to remove cannabis and its derivatives from schedule IV of the 1961 Single Convention on Narcotic Drugs following recommendations from the World Health Organisation (WHO).
This emanated from WHO recommendation 5.1, which recognises the medical value of cannabis and will see it removed from Schedule IV of the 1961 Convention - reserved for substances with ‘particularly dangerous properties’ and little or no therapeutic value.
UN adoption of the WHO recommendations acknowledges the medicinal usefulness of cannabis and clarifies that cannabidiol (CBD) is not under international control.
This vote followed an independent scientific assessment undertaken by leading experts, convened by WHO in 2017-2018, where evidence and testimonials from all corners of the world were reviewed.
It also follows last week’s landmark ruling from the European Union's highest court, the Court of Justice of the European Union (CJEU) that CBD is not a narcotic as it does not appear to have any psychotropic effect or any harmful effect on human health.
“Possibly most important day since 1961”
Elixinol chief executive officer Oliver Horn said: “This is possibly the most important day for cannabidiol, or CBD, since it was scheduled as a narcotic in 1961.
“Since that time, substantial resources have been deployed into understanding CBD and while we have long understood its significant therapeutic value, international scheduling has held it back.
"This UN vote recognises CBD’s potential, which we believe will positively impact Elixinol’s ability to conduct business in our key regions.
“Over the last two years, we’ve already built a substantial base in Europe which has contributed significantly to our recent performance and from which we can now unlock new value.
“Given the significant influence of the UN, we also expect positive follow-on effects into other countries where we operate.”
There was a strong response from investors to the news with shares more than 43% higher to A$0.265.