A British company in the marijuana industry is plotting a £100 million float making it the largest cannabis firm to be traded on the London Stock Exchange (LSE). Cannaray is expected to become the only LSE listed cannabis grower.
Marijuana stocks have been a hot topic during the last year. There are several companies around the world listed on different exchanges offering cannabis-based products to the medical industry.
Now, Cannaray is going to become the largest cannabis company listed on the London Stock Exchange. The firm has been raising funds from different companies, including a former Royal Bank of Scotland executive. Until now, Cannaray gathered £7.8 million and it could secure £3.5 million more in the coming weeks.
As per the report, the company is expected to raise up to £30 million next year, through a stock market float. That would value the firm at over £100 million. In addition to it, Cannaray has a first-mover advantage, becoming the only firm in the United Kingdom with a license that allows it to grow cannabis.
According to the Chief Executive Officer of the company, Scott Maguire, they are planning their listing on the LSE rather than on the NEX Exchange. The latter is usually used by smaller companies to raise funds. On the matter, he commented:
“I believe that’s a recipe for failure. You might as well stay private because there’s no volume or liquidity on that exchange. It would be a main board listing that would allow the company to raise the magnitude of capital necessary to become a global cannabis player”
The firm is currently working in order to offer solutions to patients that are suffering from chronic pain. Vomiting and nausea after chemotherapy, epilepsy and many other things. In the United Kingdom, individuals could acquire cannabis-based medicines using a prescription through the NHS.
In addition to it, the firm will be using the funds to grow cannabis, which is already compliant with the medical standards in the country. Moreover, patients can already smoke it or use it through oils.
Although there is no information regarding the place where the firm will have its cannabis growing farm, it is possible for it to be located on the south coast of England. The farm must be secured against individuals that could eventually break into it.
Some of the company’s directors include Chris Sullivan, the former deputy chief executive of RBS and also Sir Nigel Knowles, the former CEO of DLA.
The cannabis industry is expanding in many jurisdictions. There are new firms trying to capitalize the growth the sector is currently experiencing. Cannaray is just one of the many firms around the world that are entering this exciting market.