December 2, 2019 / 12:47 PM / 9 days ago

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

Dec 2 (Reuters) - 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.

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, 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)

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