Shares in Kanabo Group more than doubled in value on Tuesday, after the maker of vaporization and inhalation technology for cannabis made its stock market debut in London, highlighting investor appetite for exposure to the fast-growing sector.
Kanabo raised £6 million in cash from a share sale at 6.5 pence per share linked with the deal. The company has a market capitalization of just over £23 million. Proceeds will be used for sales, marketing, and research and development. In September 2020, the U.K.’s financial regulator, the Financial Conduct Authority, said that U.K.-based cannabis firms could list in London, but only if they produce the drug for medicinal purposes. Medical pot was legalized in the U.K. in 2018, but recreational use is against the law.
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