US Markets

Israeli cannabis firm Kanabo to be bought by London's Spinnaker

Israel's Kanabo Research has agreed to be bought by cash shell Spinnaker Opportunities, in what could lead to the first listing of a cannabis company on London's main stock market.

Dec 2 (Reuters) - Israel's Kanabo Research has agreed to be bought by cash shell Spinnaker Opportunities SOP.L, in what could lead to the first listing of a cannabis company on London's main stock market.

In a statement on Monday, Spinnaker did not disclose the value of the proposed reverse takeover, which would allow Tel Aviv-based Kanabo to bypass traditional listing rules.

The companies did not immediately respond to requests for comment on the value.

Spinnaker has also agreed to pump in 200,000 pounds ($256,600.00) into Kanabo, which is looking to grow sales. The Israeli company already has a promise of 1.4 million pounds from the London-listed firm.

Kanabo supplies medical cannabis products that do not contain THC, the psychoactive ingredient in marijuana which causes hallucinations. Its products are delivered through a vaping device.

The London Stock Exchange has not seen many pot firms in its indexes. GW Pharmaceuticals GWPH.O, which makes marijuana-based epilepsy treatments, was listed on the bourse's junior market between 2001 and 2016.

($1 = 0.7794 pounds)

(Reporting by Pushkala Aripaka and Noor Zainab Hussain in Bengaluru; Editing by Maju Samuel)

((Pushkala.A@thomsonreuters.com; Twitter: @pushkala_a; within UK: +44 20 7542 1810, outside UK: +91 80 6749 6633;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Commodities

Latest US Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More