Medical cannabis grower Hellenic Dynamics is looking to join London’s budding cannabis subsector with a planned initial public offer next month.
Seeking a valuation of £50mln, the Greece-based company grows, exports and sells dried cannabis flower that was developed via a partnership with the highly regarded American Farm School in Greece which is focused on agricultural genetics research.
Its main export market is Germany, which is Europe’s largest market for medical cannabis.
Management have targeted a London Stock Exchange listing after floats for the likes of Kanabo Group PLC (LON:KNB) and a number of other cannabis focused companies in the early months of the year.
Hellenic, which was only founded two years ago, aims to float on the main market via a reverse takeover into a shell company.
“As soon as Kanabo listed in London we were getting phone calls from our lawyers saying, ‘look, London is open, London is going to be the place that a number of cannabis companies will end up listing, and you’d be in very good company if you listed in London,” Hellenic chief executive Davinder Rai told CityAM.
Rai, formerly at Levant Consultants and with board experience in the technology and the natural resources sectors, said the company is appointing Sir Anthony Joliffe, former Lord Mayor of London, as chairman.
Cannabis companies were only able to list in the UK as of last September when the Financial Conduct Authority gave the go-ahead, following a relaxation of government legislation.
Medicines derived from cannabis were made legal in 2018 but there remained a grey area around the Proceeds of Crime Act until the FCA’s green light, helping the UK CBD industry’s strong growth last year.
As well as Kanabo, other cannabis newcomers include Australia’s MGC Pharmaceuticals PLC (LON:MGX) and cannabidiol(CBD)-focused Cellular Goods PLC (LSE:CBX).
Also queuing up are Grow Group PLC, a supplier of medical cannabis; Northern Leaf, a Jersey-based cultivator of pharmaceutical-grade hemp; Apollon Formularies, a Jamaican medical cannabis specialist; Voyager Life Limited, a health and wellness group focused on CBD and hemp seed oil products; and Pharma C Investments PLC, a special-purpose acquisition company looking for cannabis acquisitions.