What happened
Charlotte's Web Holdings (OTC: CWBHF), a fairly middling stock in an industry out of favor with investors, was a standout on Wednesday. The cannabidiol (CBD)-products specialist saw its shares zoom nearly 11% higher on the day, thanks to positive news from the laboratory.
So what
Tuesday afternoon, Charlotte's Web announced that a third-party clinical study it participated in demonstrated that its products "realized a distinct and palpable improvement in their quality of life and well-being."
Image source: Getty Images.
Most of the study's participants regularly ingesting Charlotte's Web Original Formula showed improvements in other areas of their health, including sleep quality and stress management. These results were markedly better than the trial's control group, which didn't experience notable improvements.
"Independent third-party research and reporting on the efficacy of hemp wellness products help build long term consumer trust and is an ongoing commitment of Charlotte's Web," said Tim Orr, president of research-unit CW Labs.
The trial was a randomized and controlled study evaluating the effectiveness of CBD products such as Charlotte's Web Original Formula. It was conducted by healthcare-tech company Radicle Science.
Now what
Beset by a host of challenges, the marijuana industry (in which CBD producers are typically included) isn't very popular just now. So it's quite the happy jolt when an encouraging piece of news like this comes more or less out of the blue.
The study's results were quite clear and very heartening. And very possibly, they'll encourage new customers to buy the types of CBD products Charlotte's Web -- a leading company in the segment -- is peddling.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Charlotte's Web and Charlotte's Web Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
