The London Stock Exchange is set to get its first cannabis company with Israel’s Kanabo Research aiming to list on the market later this year.
The listing will effectively be a reverse takeover with U.K. shell company Spinnaker Opportunities PLC announcing its intention to purchase Kanabo this February. Spinnaker was launched in May, 2017, to invest in the emerging cannabis industry. It recently secured £1.4m from an unnamed private investor to invest into Kanabo.
Tim Blythe of London-based Blytheweigh Financial PR, acting for for Spinnaker, told CBD Testers the reverse takeover will allow Kanabo access to London’s capital markets.
Kanabo Looks To raise £4m
Kanabo’s CEO Avihu Tamir says the move will support efforts to raise £4 million ($4.8 million) for clinical trials and the launch ‘over-the-counter’ products in Europe. Mr Tamir told the Reuters news agency he sees better prospects of raising capital in London – arguably the global financial hub – and is looking to secure funds from diverse sectors, such as food and health.
In a results’ statement, in June this year, Spinnaker chairman Andy Morrison, elaborated on how it viewed the booming medical cannabis market, saying ‘barely a day goes by without commentary in the mainstream press’.
Listing Allows For Cannabis Investments
He continued: “Conferences that in previous years attracted medicinal cannabis enthusiasts in the low hundreds were this year attended by thousands of people, including high ranking politicians, medical pioneers and the professional investment community.
“Through its proposed acquisition of Kanabo, Spinnaker is at the forefront of efforts to bring the medicinal benefits of cannabis to European consumers, while at the same time enabling investors to participate in the growth of the sector through a public market vehicle.”
Germany Dominates European market
Its patented vaporizer was the first such device to be approved for medical use by the Israeli Ministry of Health. Canadian companies continue to dominate the global cannabis markets and Germany is proving to be the number one destination for these business seeking an additional listing in Europe.
Some say this is due to the uncertainty in the U.K. over its efforts to leave the E.U. and there are also concerns over its regulatory position in particular the Proceeds of Crime Act. A number of cannabis company’s trade on London’s smaller stock markets, such as the NEX Exchange. Companies include The Sativa Group and Ananda Scientific.