European cannabis has become a “prime investment target for excess cash” for North American firms emboldened by high valuations in USA, a sector expert says.
Ben Langley, chief executive of investment company Grow Biotech, said that a “steady wave of capital flowing to Europe” is starting to roll across the Atlantic from entrepreneurs and investors who have “cash to deploy, global ambitions, and experience operating in legal markets”.
According to broker Liberum, cannabis sector fundraising in UK has only reached £45mln year-to-date, “a drop in the ocean” compared to the £30bn raised in North America.
Theres a feeling that North American companies have already had their windfall – with mega corporations forming such as Canada-based Canopy Growth Corporation (TSE:WEED) listed in Toronto with a market cap of $7.9bn and Aurora Cannabis Inc (TSE:ACB) trailing not far behind with its $4.3bn valuation.
British cannabis and CBD companies
Bolstered by a £7.8mln Series A funding round in September, British medical marijuana company Cannaray is now aiming for a £100mln float that would make it the largest cannabis business on the London Stock Exchange.
The funding round came from a group of private investors, of which 60% was from US.
Another major UK deal came in September when medicinal cannabis investment group World High Life announced the £9mln acquisition of Love Hemp, a UK company which already turns over £2.5mln a year selling their products in retail chain WHSmith.
WATCH: Zoetic International building out its CBD sales channels as momentum builds[hhmc]
London-listed Zoetic International PLC (LON:ZOE) has undertaken a major shift in direction this year, moving firmly into the CBD business in August with a CBD oil sales operation on both sides of the Atlantic.
Before the end of the year, Zoetic plans to begin production of its first feminised seeds, ie those that Read More – Source
