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Kanabo becomes second cannabis company to list on the LSE

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Fellow cannabis company MGC Pharma became the first to enter the market last week

This week, Kanabo Group Plc become the second cannabis company in history to list on the main market of the London Stock Exchange, just a week after MGC Pharma’s IPO.

Following a reverse takeover which saw Spinnaker Opportunities acquire Kanabo Research Ltd, the Israeli company, now called Kanabo Group Plc, has listed on the LSE.

Kanabo hoped to become the first cannabis company to list on the LSE but was pipped at the post by MGC Pharma, which announced its initial public offering on the 9th February.

Kanabo successfully completed its initial public offering (IPO) of £6 million yesterday. As with MGC Pharma, Kanabo was significantly oversubscribed, giving it a valuation of roughly £23.5 million on admission.

Its shares launched at 4.75p but by the end of the day, they had almost quadrupled in valued, closing at 20.5p, according to The Guardian.

Founder of Kanabo, Avihu Tamir believes this is a “game-changer” for the sector and demonstrates that the UK could be following in the footsteps of North America in its acceptance of medicinal cannabis.

“There is going to be a swift change in Europe. I think that what we saw starting in the US and Canada around like five years ago is now reaching Europe,” Tamir told Cannabis Health.

“Once you have the public market in a certain country being opened, you suddenly see the shift in how the cannabis industry is being perceived by decision-makers.”

Tamir takes Israel as an example, where medical cannabis has been legal since 2007.

“It was the first federally legal medical cannabis market in the world,” he continued.

“You would always see these articles; interesting stories about cannabis or someone famous that got their license. The story is similar to what you have now in the UK, with the problem of accessibility and orientation of medical health.

“Once you start to see [cannabis] companies going to a public market, everything changes because the story is moved to the mainstream, business sector. The discussion is different suddenly, it’s a legitimate business, it is not a drug anymore. It is a medicine.”

Kanabo seeks to provide an alternative solution to the smoking of medicinal cannabis flowers. Its flagship product, the VapePod, is the first-ever medically certified vaporiser for cannabis oils.

It can administer an accurate, measured dose of cannabis extract, which the company hopes will improve patient access and boost trust amongst medical professionals.

“The challenge is the physicians and medical establishments because we need to convince them that a vape is a medical route of administration,” Tamir explained.

“But with cannabis, physicians are actually prescribing flowers for smoking. [We are] bringing a medical device that is a metered dose, that is always the same. In the cartridge, you’re getting the same consistency of the formula; the same CBD levels and the same THC levels.”

In Israel, the company has been granted licences for further cannabis research and pre-clinical trials for insomnia and sleep disorders. The data from this research will, for the first time, produce bioavailability graphs for vape pens.

Tamir hopes that this will build further confidence in medical professionals who he says do not understand the unpredictability of oral administration.

He said: “When doctors see this information, they will understand that when you take in an inhalation, after three hours, the amount of cannabis your system is reduced to a very low amount.

“In oil consumption, it may be as much as eight hours.”

Outside of Israel, the company is currently selling products in the UK and Germany and says it is ready to scale up to meet market demands.

It recently launched a pilot programme for its non-THC product line in an effort to improve access to medical-grade cannabis products for people who are not able to get a prescription.

“We want to take the knowledge and experience we have in medical cannabis and give access to people that can’t get a prescription,” Tamir said.

“Our non-THC product line is pure hemp extracts, natural and makes our [products] accessible across the board in the UK and in Europe.”

Currently in advanced stages to receive the EU-registered CE mark, Kanabo is in talks with several distributors who have taken an interest in partnering in the EU.

Future products on the horizon for Kanabo include a second-generation medically certified device, new medicinal cannabis oils, and further clinical trials.

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