HELLENIC Dynamics is aiming to become the first medical cannabis cultivator to list on the London Stock Exchange. Early last month UK SPAC Plc, an AIM-listed cash shell, announced it had acquired 100% of Hellenic and was aiming for listing on Standard segment of the LSE’s main market.
The deal is pitched at £45.2m, with some 9.5bn new shares to be issued at a price of 0.472p per share.
Hellenic’s Vice President Davinder Rai is confident that it will become a listed company, despite the UK’s complex legal framework surrounding such investments.
Mr Rai told BusinessCann: “We expect to join the LSE before the end of October at the latest.”
Satisfying The Regulators
Late last year the Financial Conduct Authority said it was changing the rules to allow cannabis companies to list on the LSE.
A handful of cannabis and CBD companies have so far joined Europe’s largest stock exchange, including Kanabo Group, MGC Pharmaceuticals, Cellular Goods and Oxford Cannabinoid Technologies.
Under the FCA rules, companies that grow and sell recreational cannabis – even in countries where it is legal, such as Canada – cannot list in London because income from such activity would be an offence in the UK under the Proceeds of Crime Act 2002.