Proposals to set a minimum valuation level for companies looking to list on the London Stock Exchange could limit the number of cannabis entrants to the market. A new consultation paper from the Financial Conduct Authority recommends that only companies valued at £50m and above should be permitted entry to the LSE’s main market. If the rules were in place now they would impact a number of aspiring companies and could have impacted some of this year’s market debutants. This comes as the FCA has updated its guidelines for cannabis businesses looking to access the UK public markets. Four Debutants in 2021 In February, MGC Pharmaceuticals became the first cannabis company to list on the LSE with an opening day valuation of over £40m, it subsequently soared to over £100m and now has a market cap of £37.5m. Later that month Cellular Goods soared to almost £100m on debut and is currently valued at 38.5m. Both Oxford Cannabinoid Technologies and Kanabo were priced at over £50m on debut with OCT now valued at £31.2m and Kanabo at £63m, respectively.

Cannabis Business Executive – Cannabis and Marijuana industry news, 07/14/2021 09:31:00

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