THE London Stock Exchange will accept the first cannabis company in its 320-year history next month – marking a significant milestone in the growth and development of the industry in the UK and Europe.
Spinnaker Opportunities has today (January 29) announced the successful completion of a £6m fundraise which will allow its close on its reverse takeover of Israeli firm Kanabo Research.
The February 16 listing will value the company at £23.4m and follows a number of false starts for the company after the UK Financial Conduct Authority (FCA) baulked at expediting an earlier listing, last year.
Speaking to BusinesCann Spinnaker Chairman Andy Morrison said: “It’s been a long-time coming. There have been lots of twist and turns but they are all done. They (the FCA) have stamped it, and we’re going.
A Further 10 Cannabis Companies in 2021
“There are still quite cautious and they will want to see what happens with us, as there are a few other companies waiting to go. They may still be cautious for a while, just to see everything is in order,
“But really the door is open now. So companies with good solid businesses, and who go about it in the right way should find no issues.”
Mr Morrison believes that by the end of the year it could be joined by a further 10 cannabis-related businesses.
He says its latest fundraise has come from over 50 High Net Worth individuals. The £23.4m valuation is based on the IP resulting from the work developing Kanabo’s VapePod medical cannabis dispensing device and projected future sales.
In a release Kanabo CEO, Avihu Tamir, said: “I believe the UK and Europe are ready to embrace the benefits of medicinal cannabis and the overwhelming support and interest from investors has proved this.
“The fundraise was oversubscribed and this will help the company grow and create value faster than previously expected.”
A Monumental Day For UK Cannabis
Kanabo and Spinnaker are members of New Leaf Opportunities which has been established to help support the UK’s development into a world leader in medical cannabis and CBD.
One of its founder members is drug advocacy group Volteface and its Director Paul North warmly welcomed the news
He told BusinessCann: “This is a monumental moment for the cannabis industry, and is another sign that the UK is opening up its doors for the sector to do business in 2021.
“Kanabo is a fantastic company with a sterling reputation, so Volteface is delighted that they will be the first to list on the London Stock Exchange.
“This is a huge leap for all of the cannabis sector, and we sincerely hope more cannabis companies follow suit in due course. Investment will be a hugely positive force for good in the advocacy space, and will undoubtedly improve cost, access and quality for patients in the UK.”
LSE Warms To Cannabis
Today’s development follow last Autumn’s shift of stance by the FCA after it released the first official listing guidelines after it previously blocked entry to the market for all cannabis companies.
The FCA determined that that medicinal cannabis and CBD companies are welcome on the LSE, but those with connections to recreational cannabis companies – even if that be legal in their native jurisdiction are barred.
In May 2017 Spinnaker made its debut on the London Stock Exchange listing as a SPAC (Special Purpose Acquisition Company).
In 2019 it identified Kanabo as a reverse takeover target but was prevented from listing on the LSE by the FCA as a result of its reticence towards medical cannabis companies. Kanabo’s patented the VapePod device which was the first to be approved for medical use by the Israeli Ministry of Health.
Mr Morrison want on to say it would be looking to boost VapePod sales in the UK and Europe and continue to innovate in the delivery space.
As BusinessCann reported last year MGC Pharmaceuticals is also looking to list on the LSE and it is expected to announce its February arrival date over the next week-or-so.