Cannabis stocks collapse as FDA publishes a foggy report on CBD-impregnated foods by Investing.com

Investing.com – Cannabis stocks fell sharply on Friday after the Federal Drug Administration (AFD) said it was still unsure of the safety of the cannabinoid found in marijuana for human consumption.

Tilray (NASDAQ 🙂 fell 3%, while Aurora Cannabis (TSX :), Cronos Group (NASDAQ 🙂 and Cover growth Corp. (NYSE 🙂 fell 4%.

The FDA has launched its first public hearing on Cannabidiol, one of the most common chemical compounds in marijuana, with a host of cannabis-producing companies seeking to convince the FDA to authorize the sale of dietary supplements and food products derived from cannabis.

But even before the standoff began, the agency warned that there was still much to learn about the risks associated with cannabis-based food products.

In his prepared remarks, Commissioner Ned Sharpless stated that "there are real risks associated with THC and CBD and that crucial questions remain about the safety of their widespread use in food and dietary supplements. ".

Although marijuana for medical purposes has been licensed in a number of states to treat various ailments, including acute pain and nausea, the cannabinoid is not allowed in dietary supplements or in foods .

Friday's hearing is unlikely to be a mere fact-finding mission for the agency and many say it's just the first step in a long battle for cannabis who try to legalize their cravings infused with marijuana.