Join our daily newsletter At The Bell to receive exclusive market insights
- Roots Sustainable Agricultural Technologies (ROO) says it is well-placed after the United Nations (UN) decided to declassify medicinal cannabis
- The drug is now classified under the least restrictive classification, meaning it’s a substance with “medical value and low potential for abuse”
- As a result, Roots is expected to benefit from the new ruling, as existing cultivation operations are likely to increase production
- More broadly, new countries are now poised to enter the medicinal cannabis sector
- The company’s technology addresses critical problems faced in agriculture today, including plant climate management and the shortage of water for irrigation
- On the market this morning, Roots is up 30.4 per cent and trading at 3 cents each
Roots Sustainable Agricultural Technologies (ROO) says it is well-placed after the United Nations (UN) decided to declassify medicinal cannabis.
The United Nations Commission on Narcotic Drugs (UNCND) has voted to remove cannabis from schedule four of the 1961 drug convention treaty. Substances that are classified in this category are considered “with no medical use and with high potential for abuse.”
Essentially, this means that cannabis is on the same level as some of the most dangerous and addictive drugs, such as heroin.
Now, however, cannabis will be classified under schedule one, which is the least restrictive drug classification aimed for substances with “medical value and low potential for abuse.”
Roots is expected to benefit significantly from the new ruling as some existing cultivation operations are likely to increase production and new countries will enter the medical cannabis sector.
The company’s technology addresses critical problems faced in agriculture today, including plant climate management and the shortage of water for irrigation.
“The UN ruling to declassify cannabis is a landmark decision and paves the way for the relaxing of cannabis drug classifications in large markets across the world,” CEO Boaz Wachtel said.
“The result of this vote follows 60 years of the status quo, three years of scientific review by the world’s leading health organisations, two years of diplomatic discussions and considerable lobbying from [non-government organisations],” he added.
On the market this morning, Roots is up 30.4 per cent and trading at 3 cents each at 11:37 am AEDT.
