Kanabo, the UK’s first cannabis IPO, has seen its shares double as the medical cannabis company celebrates its very first day on the London Stock Exchange.
Immediately after it officially entered the London stock market, the Israeli cannabis company appears to have become a huge hit among investors.
Yahoo reports that the cost of the company’s shares doubled to around 20p following the launch on Tuesday. Thismomentum persisted throughout the day, as the shares were still selling at around 16-17p late in the afternoon.
Prior to the historic event, in a statement, Kanabo CEO Avihu Tamir said: “We share the enthusiasm shown by the investment community in the UK for this important day.
“The reaction we have seen since we published our prospectus two weeks ago has been overwhelming.
“With the support of the FCA and London Stock Exchange, the medical cannabis industry is set to take off in the UK and in Europe, similar to what’s happened in North America in recent times. This is just the beginning.”
Kanabo became the first cannabis company to “hold an initial public offering (IPO)” on the LSE after meeting all of the Financial Conduct Authority (FCA) requirements in January.
While talking to Canex, Mr Tamir revealed that the company wanted to enter the stock market in order to create the biggest medical cannabis company in Europe and to help the European market to grow.
He told us: “If you look at Europe, it’s maybe five years behind the US. Now we’re getting to the point when people stop arguing whether cannabis is here to stay. It’s the right time to start doing business with medical cannabis in the UK.
“To be an open company is a massive advantage in the cannabis industry. It legitimises you, and it’s good for business development as well.”
Mr Tamir added that he believed the moment when GPs across the UK would be able to prescribe medical cannabis was “very close.”
Kanabo, an Israeli company that started trading on the medical cannabis market in 2017, offers a special vaporising device, VapePod, that is designed for a wide variety of conditions, including insomnia and sleep disorders, pain management and PTSD.
Last year, during a roadshow where the team was meeting businessmen in the UK, investors showed utmost interest in Kanabo and what they have to offer, which resulted in more than £6 million in investment into the company.