Medical cannabis company Kanabo Group’s share price soared today on its first day listed on the London Stock Exchange (LSE).
Kanabo manufactures vaporised marijuana pods and inhalers for medical use.
By mid-morning, the company’s share price had jumped some 66.64 per cent on its first day as a listed company.
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 Financial Conduct Authority (FCA) and LSE, 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”.
Flurry of activity
The move follows a flurry of activity in the sector. Just last week fellow medical cannabis firm MGC Pharmaceuticals announced its intention to float on the LSE and before that UK-based Cellular Goods, which is backed by David Beckham, announced it too was seeking a listing.
In September 2020, the FCA allowed medicinal cannabis companies to list on the main market of the LSE.
According to Neil Wilson, chief market analyst at Markets.com, London could be set for a “boom time” for cannabis listings.
“[The FCA’s decision] could create a major European trading hub for cannabis companies which is currently dominated by Toronto and New York,” he added.