Shares in a cannabis pharmaceutical company, known as “the Nespresso cannabis”, nearly squared in value on their first trading trip on the London Stock Exchange on Tuesday as investors scrambled to buy into the “wellness weed” market.
Kanabo, an Israeli company that makes vaporised marijuana pods, saw its shares rise more than 292% to close at 18.5c. Shares, launched at 4.75p, hit a high of 20.5p earlier in the day.
It was the position of the sections – which raised £ 6m to fund research and clinical trials on the use of cannabis to treat insomnia. Avihu Tamir, Kanabo ‘s chief executive, said: “We could have invested at least £ 11m but we had to stop sooner.
“It’s an exciting time to be involved in the sector and investors know this. It’s not just retail investors – we were amazed by the number of institutions that have invested in Canada and want to join us and the others who list there in London. ”
Kanabo makes a medical grade vaporiser that uses cartridges of liquid derived from cannabis flowers. “It’s something my grandmother can use,” said Tamir, who entered the industry after being one of the early founders of medical cannabis in Israel.
“I found myself sitting in a clinic with a nurse teaching me how to roll cannabis cigarettes,” he said. Tamir said Kanabo vaporiser is an update for patients and doctors as it delivers a precise 1mg dose with every inhalation, and will appeal to users who prefer a smoking-like act rather than a smoker. including pills.
Kanabo is the second pharmaceutical cannabis company to list its shares in the London market in the past two weeks, and analysts said London could have a “boost time” for cannabis listings after regulation Financial Conduct Authority to allow companies to enter the market.
“[The FCA’s decision] it could create a major European trading center for cannabis companies currently controlled by Toronto and New York, ”said Neil Wilson, chief market analyst at Markets.com.
Shares in MGC Pharmaceuticals, an Australian medical cannabis, rose 60% on their first day trading on the LSE last week – and are now 2.5 times higher than the first record 1.75 p.
It is expected to be followed by a group of other medical cannabis companies, including Cellular Goods, which manufactures a range of synthetic cannabinoid products and is backed by David Beckham’s DB Ventures company. Cellular Goods is expected to raise £ 8m through a £ 20m share offer.
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Alexis Abraham, chief executive of Batular Goods, said: “There is a strong market for high quality cannabinoid products but the industry is currently very fragmented and there is no name that consumers can trust across product sectors. . ”
Cannabinoid, also known as CBD, is the non-psychoactive extract from cannabis that has a wide range of uses including relief from anxiety, depression and PTSD.
Globally, the legal cannabis market is projected to grow to £ 50bn over the next five years.