Vaporiser maker to be first medical cannabis firm listed in London

Kanabo issues prospectus for London Stock Exchange after clearance from FCA

An Israeli-founded firm that makes vaporisers is on course to become the first medical cannabis company to float on the London Stock Exchange next month, after regulators gave the green light.

Kanabo set a date of 16 February for its stock market debut and is setting its sights on the UK after securing £6m from investors, valuing the company at £23.2m.

The firm, which issued its float prospectus to potential investors on Friday, expects to be the first to offer UK investors shares in a company that makes money directly from medical cannabis.

It comes after the Financial Conduct Authority said last year that UK-based medical cannabis firms could list in London. Although Kanabo is originally an Israeli firm, it was bought by the UK-based cash shell company Spinnaker in 2019.

Kanabo makes a medical-grade vaporiser that uses cartridges of liquid derived from cannabis flowers.

“It’s something my grandma can use,” said the chief executive, Avihu Tamir, who got into the industry after becoming one of the early recipients of medical cannabis in Israel.

“I found myself sitting in a clinic with a nurse teaching me how to roll a cannabis cigarette,” he said.

Tamir said Kanabo’s vaporiser is an upgrade for patients and doctors because it delivers a precise 1mg dose with every inhalation, and will appeal to users who typically prefer an act similar to smoking rather than ingesting pills.

He added that the company would target the UK market in the belief that patients’ past difficulty in accessing cannabis, despite legalisation, is dissipating.

One of the problems has been that companies required a prescription before they could import and many GPs were not keen to prescribe. But Tamir said new specialist clinics were easing the bottleneck.

“The distributors that have the clinics know how to collect together a sufficient amount of prescription for three or six months ahead, so they can import in bulk and dispense from there,” he said.

While medical cannabis companies can list in the UK, those that sell recreational weed remain barred, even if they operate in countries where it is legal.


Rob Davies

The GuardianTramp

Related Content

Article image
Neil Woodford loyalists pay dearly for stock-picker's style drift
Winding up of flagship fund should also be a big lesson for Hargreaves Lansdown

Nils Pratley

28, Jan, 2020 @6:35 PM

Article image
Quiz float makes fashion firm's founding family some of Scotland's richest
Ramzans aim to stay ‘grounded and focused’ after selling £92m stake in firm that investors hope will become the new Boohoo

Zoe Wood

21, Jul, 2017 @6:20 AM

Article image
More firms cancel dividends as market sell-off continues
FCA asks companies to delay financial results for at least two weeks amid coronavirus crisis

Julia Kollewe

23, Mar, 2020 @5:58 PM

Article image
Medical cannabis companies cleared for London stock market
Regulator agrees to float of UK firms but recreational suppliers still banned

Rob Davies

18, Sep, 2020 @4:34 PM

Article image
City watchdog halts new business at Buy2LetCars
Firm which buys new cars and leases them to consumers with poor credit rating criticises ‘bizarre’ decision

Rob Davies

21, Feb, 2021 @5:26 PM

Article image
Investors in collapsed Buy2Let Cars face losses, FCA confirms
Firm fell into administration last week after City regulator ordered it to stop accepting new investment

Rob Davies

17, Mar, 2021 @2:30 PM

Article image
UK finance watchdog looks to relax rules to boost London listings
Changes are aimed to attract ‘high quality, growth’ firms such as biotech companies

Kalyeena Makortoff

26, May, 2022 @12:30 PM

Article image
Democratising finance for all? An investment app for amateurs and a student trader's death
20-year-old killed himself after mistakenly believing he had lost $730,000 through the Robinhood app

Rob Davies

18, Jul, 2020 @7:00 AM

Article image
Aim investors on target to pocket more than £1bn in dividends
Figures likely to raise concerns about funds going to shareholders rather than investment

Miles Brignall

09, Sep, 2019 @6:44 AM

Article image
Investors received record-breaking dividends in 2017, research shows
Shareholders in companies on London’s main market received £33.3bn during second quarter, up 14.5% year on year

Simon Goodley

17, Jul, 2017 @6:01 AM