Kanabo shares up by 700% in less than two days of trading
Following its impressive stock market debut on Tuesday, Kanabo, the medical cannabis company, soared again on day two.
Kanabo made further gains of 108% at mid-afternoon trade on Wednesday, with the Kanabo share price up to 38.4p. At one point, Kanabo peaked at 48.95p per share.
Kanabo closed on 18.38p per share on its debut, more than 292% up from its opening price of 4.75p. The company had set an IPO price of 6p.
Since the company was floated on Tuesday morning, Kanabo shares are up by over 700%.
Avihu Tamir, chief executive of Kanabo shared his excitement around the company’s initial public offering (IPO).
“We share the enthusiasm shown by the investment community in the UK for this important day. The reaction we have seen since we published our prospectus two weeks ago has been overwhelming,” Tamir said.
Kanabo follows MGC Pharmaceuticals, another medicinal cannabis company, which listed on the LSE recently. Analysts are predicting more of the same following the FCA’s ruling permitting cannabis firms to join the stock market.
“[The FCA’s decision] could create a major European trading hub for cannabis companies which is currently dominated by Toronto and New York,” said Neil Wilson, the chief market analyst at Markets.com.
The money generated by the IPO will be reinvested into research into a cannabis treatment for insomnia, among other areas.
Avihu Tamir believes his company’s float is just the beginning.
“With the support of the Financial Conduct Authority (FCA) and the London Stock Exchange, the medical cannabis industry is set to take off in the UK and in Europe, similar to what’s happened in North America in recent times. This is just the beginning.”