LONDON’S stock exchange looks set to become the linchpin of the global medical cannabis industry after Kanabo – making its exchange debut this week – saw its value skyrocket.
The Israel-based firm entered the market at 6.5p on Tuesday. By lunchtime today, those stocks were worth 50p – up more than 850% since the IPO. It elevated the company’s market cap from £23.5 million to almost £150m.
Responding to a blokbuster 48 hours, Avihu Tamir – founder and CEO of Kanabo – said the market reaction paved the way for London to become the epicentre of medical cannabis.
“We knew there was excitement around the product but the response has been extraordinary,” said the 40-year-old.
“There is a huge opportunity waiting to be seized for London to become a leader in medical cannabis in Europe.”
Revenue from the IPO will be ploughed back into clinical trials ahead of a much-anticipated launch of the firm’s vape dosing project which has been modelled on a Nespresso-style of operation and the sale of refined cannabis cartridges.
The London Stock Exchange recently opened its doors to the cannabis industry following the FCA’s decision to allow listings for cannabis companies in September.
Next up will be Cellular Goods – a firm with connections to former England footballer David Beckham – which is expected to float before the end of the month.
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