ASX-listed medicinal cannabis player and hemp-based products manufacturer Bod Australia (ASX:BOD) has seen its share price climb 4.17% in afternoon trades after the company’s receipt of certification from the US Hemp Authority (UHA).
Specifically, that certification has been given to Bod to be used in the advertisement of its CBD extracts and other CBD products.
The certification from UHA sees Bod boost its regulatory compliance credentials; the company also boasts Novel Food Application status in the UK, as well as an FDA classification titled ‘Generally Recognised as Safe Status.’
The US Hemp Authority has awarded its certification status to 25 other companies, making Bod the 26th recipient on UHA’s list. The UHA is also responsible for publishing industry standards for the US hemp industry.
“Being awarded UHA certification follows a long and stringent testing process, uindertaken on all facets of Bod’s [CBD] extract and products by a third party,” Bod Australia CEO Jo Patterson said.
“This validates the superior quality of the Company’s extract…we anticipate the UHA’s seal of approval will provide consumers with added confidence in the company’s products.”
On its website, the authority notes a lack of stringent regulatory frameworks surrounding the hemp industries (and CBD products by extension) as enforced by the FDA, the US government’s health products regulator.
CBD refers to cannabidiol, a non-psychoactive compound naturally occurring in cannabis plants which is widely accepted as possessing medicinal properties. CBD, unlike THC, is viewed as more desirable for treatment in many contexts, given its lack of side effects.
The private UHA is the flagship North American certification body rewarding high-quality and FDA-compliant companies operating in the sector with its seal of approval, which Bod expects to see reflected in improved revenue sales due to a higher level of consumer trust.
The US Hemp Authority has awarded its certification status to 25 other companies, making Bod the 26th recipient on UHA’s list. The entity is also responsible for publishing industry standards for the US hemp industry.
At the end of the June quarter, Bod Australia had $3.6m in cash and spent $0.826m in opex over the period.
The company has a market cap of $10.5m and is ranked 180 of 211 constituents in the healthcare sector.
However, the company has not recovered losses made since October 2021, when shares were valued at 30c. Today, shares are worth 10c.
Heavy selling has defined Bod Australia’s performance this year as macro trends suppress positive sentiment for the healthcare sector wholemeal.
A surface look at Bod’s share price performance summarises this with, with data currently reflecting:
One month returns up 7.5%
One year returns down -64.9%
Year to date performance down -58.33%
Get the latest news and insights direct to your inbox