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- Kanabo has recently partnered with Medocann Pharma Ltd. to develop new products aimed at specific medical conditions.
- Cellular Goods inked a multi-year manufacture and supply contract with Chanelle McCoy Health Ltd for the rollout of clinically-approved ingestible products.
Unlike the United States, where cannabis is widely used for both medical and recreational purposes, its use is still tightly restricted in the UK. The use of cannabis for medical treatment was only approved in the UK in 2018.
Recreational use of cannabis, however, remains prohibited in the country. Therefore, the approval for the listing of the cannabis/cannabinoid companies on the London Stock Exchange (LSE) was complicated. Recreational cannabis firms were strictly prohibited from being listed in the UK because any funding received by these companies would be noted as a breach of money laundering rules.
Medical cannabis firms only received clearance for listing in September 2020. Here is a detailed review of two medical cannabinoid stocks in the UK – Kanabo Group and Cellular Goods.
(Data source: Refinitiv)
Kanabo Group is a company engaged in research, development and sales of THC-free CBD products. The company also develops medical cannabis products for use in targeted medical applications. In October 2021, Kanabo recently partnered with Medocann Pharma Ltd. to develop new products targeted at specific medical conditions. The agreement will provide Kanabo with exclusive rights for the distribution of the co-developed cannabis products in the UK and Germany.
Last month, the company had launched sales of its CBD products through an e-commerce site, HandpickedCBD.com. In August, Kanabo’s Materia received a license to produce cannabis for medical and research applications from the Malta Medicines Authority (MMA).
Kanabo registered a £131,000 loss for the year ended 31 December 2020 compared to a loss of £363,000 in 2019.
The shares of Kanabo Group closed at GBX 16.50 on Thursday 14 October 2021. Its market capitalisation currently stands at £60.91 million.
Cellular Goods is a UK-based consumer cannabinoid firm. In August 2021, Cellular Goods inked a manufacture and supply contract with Chanelle McCoy Health Ltd (CMH) for the rollout of clinically-approved ingestible products. Under the multi-year agreement, CMH will be engaged in supplying three CBD ingestible that will be sold under the Cellular Goods brand in the UK and Europe in 2022.
Cellular Goods reported a loss before tax of £2.12 million in H1 2021 compared to £0.14 million in H1 2020. The company received the backing of David Beckham's DB Ventures as a major equity investor with stake of 5%.
The shares of Cellular Goods closed at GBX 7.00 on Thursday 14 October 2021. Its market capitalisation currently stands at £36.22 million.
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