Cannabis company makes history as first to list on London Stock Exchange

MGC Pharma has become the first medicinal cannabis company in history to list on the London Stock Exchange.

The European based and Australian listed bio-pharma company, which specialises in the production of cannabinoid-derived medicines, has become the first cannabis company to be admitted to the main market of the LSE on Tuesday, 9 February 2021.

The company’s shares have been valued at £6.5 million, with its placement “significantly oversubscribed” and supported by leading UK fund managers, and family office and high net worth investors.

MGC Pharma develops products for patients globally, targeting two widespread medical conditions – epilepsy and dementia – with further products in the pipeline.

The most advanced of these is ArtemiCTM, which recently successfully completed Phase II trials as a potential aid to the recovery of moderate COVID-19 patients.

Following completion, the firm will have cash reserves of approximately $12.6 million, which will be used to fund further clinical trials.

A Phase III clinical trial of ArtemiCTM is planned for later this year, with a Phase IIb clinical trial of its refractory epilepsy treatment CannEpil, also on the cards.

The funds will also support the increased distribution of its product range and expansion into new markets, including Brazil and major EU countries and completing construction of the group’s proposed manufacturing facilities in Malta.

Roby Zomer, co-founder and managing director of MGC Pharma, commented: “We are delighted that following the significant progress and achievements of our company to date, we are now placed to be the first medicinal cannabis company to list on the London Stock Exchange.

“This is something we have been working towards for over 18 months, realising our strategic ambition to be closer to our operations in Europe with greater access to key UK and European strategic investors.”

The Financial Conduct Authority (FCA) issued new guidelines on Friday 18 September, giving the green light to medical cannabis companies to list on the LSE.

It was described at the time as a “long overdue” move by the sector.

“We are already seeing the benefits of this decision, with the strong show of support from a number of leading UK institutional funds and sophisticated investors for the Placing, which was significantly oversubscribed, to coincide with our LSE listing,” Zomer continued.

“The funds will primarily be used to support the Company’s growth ambitions and key clinical research programs for our leading products, as we continue to expand our manufacturing capabilities, increase our product range and expand into new and existing key markets.”

Alongside MGC Pharma, a handful of key cannabis players have set their sights on being the first to trade shares.

Isreali company Kanabo Research, which develops medical cannabis vapourisers, is expected to list on the LSE next week.

Emmac, one of Europe’s largest cannabis firms, are also in the race to list this year.