Avihu Tamir is the CEO of Kanabo
Cannabis drug proponents have been predicting for years that the industry will revolutionize healthcare and bring investors a decent profit. That time could finally come.
Take our Kanabo Group, the first medical cannabis company to receive approval from the Financial Conduct Authority last month to list on the London Stock Exchange on February 16, subject to shareholder approval.
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It has raised £ 6,000,000 for an oversubscribed placement, subject to certain conditions, and obtaining FCA approval was the culmination of several years of hard work.
The starting shot is not only a major milestone for Kanabo, but also for the UK market. For several years, America and Canada have been leaders in medical cannabis, creating thousands of jobs and billions in taxable income.
The FCA released guidelines last September that allow cannabis companies to list on the LSE, provided they are medical or pure CBD companies that are not allowed to conduct recreational business. Now is the time for the UK and Europe to catch up and this month it started and a number of cannabis companies are starting to apply for LSE admission.
Kanabo created the VapePod, the only medical device cannabis vaporizer that offers the medical community a real alternative to prescribing cannabis to help with stress, pain and PTSD. General practitioners want to know that every prescription gives patients the same dose every time, and the VapePod offers this in specific dosages.
Each inhalation delivers exactly 1 mg of cannabinoid extract, which is very different from smoking prescribed cannabis flowers, which are difficult to consistently reproduce as an agricultural product and also release undesirable carcinogens, soot and tar into the lungs. The extract formulas developed by Kanabo are pure without additives or diluents.
This is a cornerstone and the publicity gained has been a boon to the industry in general.
In the past few days, an Australian company has been trying to double-list on the LSE, and David Beckham has become involved in the cannabis skin care industry through his investment vehicle DB Ventures. There will be more.
The European medical cannabis industry is estimated to be worth EUR 2.3 billion by 2025 and the European CBD market is estimated to be worth EUR 13.6 billion by 2025.
Last week, UK-based pharmaceutical company GW Pharma, which specializes in a cannabis-derived treatment for epilepsy, agreed to be bought in a £ 5.3 billion acquisition. It’s a great endorsement for the industry.
A deluge of products has emerged in the wellness industry, but consumers find it difficult to understand which products or brands are right for them. Tinctures, oils, gums, themes, and the like offer a wide variety of choices. CBD products for pets are also making an appearance.
On the medical side, clinics are popping up and some even offer video consultations that allow patients to access during lockdown. You have seen a barrage of inquiries that are easy to understand given the mental crisis created by the pandemic.
The market should create thousands of jobs in the UK and create much-needed taxable revenue for the government, but like all emerging economies, especially this one, there needs to be rigorous scrutiny and balancing to ensure the public and medical community are getting it the right information. Supply chains and production should be tightly regulated, but also within reason, to ensure that this sector picks up.
Judging by the reaction of investors and the interest of other companies looking to list in London, this is the start of a huge new industry in this country and in Europe.
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