An Israeli-founded medical cannabis firm has hailed a “pivotal moment” for the sector as it edges nearer to its float on the London stock exchange.
Kanabo, which makes vaporisers using a cannabis component, was among a raft of firms competing to become the first cannabis-related business to list in London after city regulators gave a green light last month.
Last week, MGC Pharmaceuticals and David Beckham-backed Cellular Goods opened for trading in London amid burgeoning interest from potential investors.
Kanabo is to make its stock market debut on Tuesday in a listing expected to value the company at £23.2 million.
The business has raised £6 million to fund its growth strategy following the listing.
Avihu Tamir, chief executive, told the PA news agency that both retail and institutional investors were clamouring to enter the rapidly growing medical cannabis sector.
“We could have secured at least £11 million in investment but we had to stop sooner,” he said.
“It’s a really interesting time to be involved in the sector and investors know this. It’s not just retail investors – we were surprised by the number of institutions who have already invested in Canada and are keen to join us and the others listing in London.
“It’s a pivotal moment for us and others in medical cannabis because that FCA (Financial Conduct Authority) decision gave us another level of accountability.”
Mr Tamir said the funds will go towards further clinical trials and expanding the wellness operations of the business.
The vaporiser delivers a precise 1mg dose to users with every inhalation, he said.
Simon Erridge, co-founder and trustee of medical cannabis charity Sapphire Medical Foundation, said: “The disconnect between patient demand and the access of medical cannabis is prolonging the suffering of potentially millions of patients.
“News that Kanabo has developed a medical cannabis vaporising solution that delivers a quality product with a precise measured dose and expects to IPO on the LSE clearly signifies a momentum change that will improve accessibility for patients in the UK.”