Israeli cannabis firm to list on London Stock Exchange

Israeli cannabis firm to list on London Stock Exchange

An Israeli cannabis company is set to be listed on the London Stock Exchange (LSE) as part of a drive to raise £4m for clinical trials into medical marijuana.

Tel Aviv-based Kanabo Research is keen to fund detailed studies into the potential health benefits of medical cannabis ahead of launching over-the-counter products as it plans to become the first business of its kind to appear on the LSE.

The
move comes as the UK is gripped in the final throes of negotiating its way out
of the European Union (EU) – a prospect which, according to lawyers and Kanabo’s
CEO, still has the potential to attract huge investment from a wide variety of
sectors.

Avihu
Tamir, who set up Kanabo after being treated with medical marijuana for crippling
migraines he had suffered since childhood, says London still offers opportunities
for pioneers – despite the current Brexit upheaval.

“I believe there is a benefit to being first, I
believe there is a benefit of leading a change in a market,” he said.

“We have a route for generating cash and
revenue almost immediately, but we have potential for much more than that.

“You’re growing fast or being bought and when you need to grow fast it’s much easier to do it as a public company – the London Stock Exchange gives you that added value.”

Promised investment

The surging medical cannabis market in Israel is one
of the Tel Aviv stock exchange’s fastest-growing sectors, but Kanabo – with a
promised investment of £1.5m from cash shell Spinnaker Opportunities – is keen
to seize on the potential of the UK market.

Anticipated products from Kanabo are all largely
medical cannabis administered through a vaping device – a delivery system which
has the backing of Israel’s health ministers.

It is understood Kanabo is counting on the UK to
relax its marijuana laws over the coming years. While a limited number of CBD
products are available in many stores across the UK, uncertainty still
surrounds future legislation.

That
uncertainty has led several lawyers to urge caution. Including Claire O’Donnell
– a partner with Norton Rose Fulbright who told Israeli business site Haaretz
that investors needed to be wary.

“A lot of people are wanting to have a conversation about the
sector,” she said.

“But investors need to tread carefully and take guidance to
navigate what is a complex regulatory landscape.”


Leave a Reply

Your email address will not be published.