Next Investors logo grey

United Nations reclassifies cannabis in far-reaching landmark decision


Published 03-DEC-2020 12:52 P.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

In a week that has been dominated by extremely positive regulatory news along with highly promising company-specific developments, Creso Pharma Limited (ASX: CPH; FRA: 1X8) has been greeted with a welcome decision by the United Nations Commission on Narcotic Drugs.

In a significant recognition of the medical benefits of cannabis, the Commission has voted to remove it from Schedule IV of the 1961 drug convention treaty.

Under the United Nation’s system, Schedule IV substances are considered the most dangerous and addictive drugs.

Cannabis will now be classified under Schedule I, the least restrictive drug classification, a landmark decision and in essence, acknowledgement of the potential medical properties of cannabis.

This fits with Creso Pharma’s market positioning as it develops cannabis and hemp-derived therapeutic, nutraceutical, and lifestyle products with wide patient and consumer reach for human and animal health.

Not only will Creso Pharma`s existing global distribution network and footprint benefit from this ruling, the decision also has the capacity to unlock a number of near-term and medium-term opportunities for Creso at a time when the company is well funded and strategically positioned.

Investors have recognised the potential upside for Creso Pharma in relation to recent developments and today’s decision, with its shares up 150% on a week-on-week basis.

53 member states review WHO research in deciding to reclassify cannabis

The vote to reschedule cannabis occurred on 2 December 2020 and was undertaken by the Vienna-based Commission on Narcotic Drugs (“CND”).

The Commission includes 53 member states with the CND carefully reviewing a series of World Health Organisation (“WHO”) recommendations on reclassifying cannabis and its derivatives ahead of the vote.

Creso Pharma co-founder and director Boaz Wachtel has played a prominent role in achieving these outcomes, and he said today, “The UN ruling to reclassify cannabis is a landmark decision and paves the way for the relaxing of cannabis drug classifications in large markets across the world.

“The result of this vote follows 60 years of status quo, three years of scientific review by the world’s leading health organisations, two years of diplomatic discussions and considerable lobbying from NGOs.

“I am proud and privileged to have been a part of a small group of dedicated activists that have fought for decades to reschedule cannabis.

"I am very confident that this decision will unlock a number of near term opportunities for Creso Pharma, and I look forward to working with the Board and management to unlock further value for shareholders.”

Wachtel contributes to European Coalition’s drive for change

Wachtel was part of the European Coalition for Just and Effective Drug Policies (“ENCOD”) which was involved in driving the change in classification of cannabis.

He attended a number of UN Drug Convention meetings in Vienna, assisting in writing and coordinating research papers that were submitted to the Commission of Narcotic Drugs ahead of the vote.

Wachtel also liaised with some of the 250 Non-Government Organisations (NGOs) that signed a petition around the reclassification of cannabis.

The decision is expected to have a major global impact on the cannabis industry, providing further justification for regulatory bodies to adopt a similar stance at a time when there is already growing recognition of the benefits offered by medical cannabis.

Creso Pharma anticipates that a number of near term opportunities will materialise as a result of the ruling, including opportunities that the company was not able to previously pursue, and management will seek to capitalise on these immediately.

Creso has an established global footprint and is well funded to capitalise on multiple growth initiatives.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.