Shares of Lifeway Foods Inc. (NAS:LWAY) shot up 44% toward an 11-month high in active afternoon trading Thursday, after the Illinois-based maker of probiotic, fermented beverages announced plans to enter the cannabis market with a drink infused with cannabidiol, or CBD. Trading volume swelled to about 1 million shares, compared with the full-day average of about 37,000 shares. The company said it will enter the market through its Plantiful + CBD product, once it is legalized at the federal level by the Food and Drug Administration. The company said it is also planning to file a comment in support of the FDA developing a science-based structure for the sale of products that contain CBD. plans to release Plantiful + CBD in a biodegradable 3.5-ounce bottle. "Mental health is as important as physical well-being, and CBD shows promise as way to promote lowered anxiety and stress relief," said Chief Executive Julie Smolyansky. "Science has shown that probiotics are natural inflammation reducers, and we believe that the addition of CBD will create an unmatched combination in the beverage space." The stock, on track for the highest close since July 2018, has more than doubled (up 122%) year to date, while the ETFMG Alternative Harvest ETF (PSE:MJ) has run up 30% and the S&P 500 (S&P:SPX) has gained 17%.
June 20, 2019, 1:26 p.m. EDT