Around £45 million has been raised in the London markets for cannabis companies just this year, say analysts.
Whilst this is just a drop in the ocean compared to the £30 billion raised in North America expect to see more cash heading into Europe over the coming months. The Proactive Investors website highlights research from stock broker Liberum, which calculates cannabis sector fundraising totalling £45 million, in 2019, so far.
It also quotes Ben Langley, chief executive of London-based cannabis company Grow Biotech, as saying that a ‘steady wave of capital is flowing to Europe’ from across the Atlantic
Cash To Deploy
He went on to say North American interest in Europe should be seen as an ‘enabler of growth, rather than something to be feared’ adding these entrepreneurs have ‘cash to deploy, global ambitions, and experience operating in legal markets’.
While the overseas interest in Europe may be in part due to the tumbling stock values in North America – down 50% year on year – there is no doubt we are witnessing a blossoming interest in the Europe, and particularly the U.K.
The most high profile recent investment into London was by Canadian investor David Stadnyk, one of the founders of Supreme Cannabis. His company World High Life was recently launched on London’s NEX Exchange and subsequently spent £9 million on U.K. company Love Hemp, as we reported earlier.
Largest U.K. Cash Raise
CBD testers also recently reported on one the largest U.K cash raises so far this year by Cannaray, which has raised almost £8 million and Proactive Investors reports it is now aiming for a £100 million float that ‘would make it the largest cannabis business on the London Stock Exchange’.
Proactive Investors reports that its funding round came from a group of private investors, of which 60% was from the U.S. Here at CBD testers we reported on Equinox International – a U.K. company backed by former US Defence Secretary – which is aiming to raise $15 million for a market listing.
British start-up Daye has secured $5.5 million in funding from high-profile investors in the U.S. to launch a pain-relieving CBD tampon. U.K. medical cannabis firm Eco Equity has raised £5 million in the London capital markets to create a medical cannabis cultivation business in Zimbabwe.
And we have also reported of U.K. investments into Israeli firm Kanabo and moves by Australian firm MGC Pharmaceuticals to trade on the London markets.
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