- Various companies are doing research and development operations in the medicinal cannabis market.
- In September 2020, the financial regulatory body Financial Conduct Authority revised some of its guidelines for the listing of cannabis stocks.
- MGC Pharmaceuticals Ltd was the first company to get listed after the rule’s relaxation by the regulator.
The medicinal cannabis segment is one of the fastest growing markets globally. Various companies are operating in the segment and are doing research and medical trials to develop breakthrough treatments that can treat life-threatening illnesses and diseases. Till date, the medicinal use of cannabis has been found effective in treating nerve pain, nausea from cancer, and other chronic illnesses.
Listing guidelines for companies operating in cannabis-related business are being updated. Many stock exchanges globally are allowing cannabis-related businesses to list on their exchanges and raise capital. In September 2020, the financial regulatory body Financial Conduct Authority (FCA) also revised some of its guidelines. It gave a green signal to specific Cannabis-related businesses to list on the London Stock Exchange, after which many companies got listed this year.
© 2021 Kalkine Media Ltd.
Let us look at 3 listed medicinal cannabis stocks and their long-term investment prospect:
MGC Pharmaceuticals Ltd (LON: MXC)
Australia-based pharmaceutical company was the first to list on the London Stock Exchange in February this year. The company focuses on the research and development of medicine and cannabis-based formulation to treat diseases like brain tumour.
The company’s IPO received a great response from investors, and the £6.5 million issue was heavily over-subscribed. The stock has been performing well since its listing and has returned over 45% since July 2021. The company reported record sales of 12,457 units of phytocannabinoid, a cannabis-based products in FY21 generating revenue of USD 2 million for the company, which indicates that the company’s products are getting accepted by the patients and showing signs of revenue growth. The company reported revenue of USD 2,962,897 in the financial year ended 30 June 2021.
MGC Pharmaceuticals Ltd’s current market cap stands at £81.94 million as of 09 September 2021. It currently hovers around at GBX 3.50 with a 52-week high of GBX 9.30.
Cellular Goods Plc (LON: CBX)
The consumer products company, that focuses on pure play biosynthetic cannabinoids products raised £13 million through IPO. However, since it’s listing the stock performance has been range-bound as the company is still to launch its product.
As per the latest update, the company has finalised multi-year manufacture and supply agreement with Chanelle McCoy Health Ltd and plans to launch skincare and after-sport recovery products in the coming months. If the company’s products receive a positive response from the customers, then its products sales could add to the share price performance. The company’s shareholders include David Beckham's DB Ventures, which holds a 5% stake in Cellular Goods Plc.
Cellular Goods Plc current market cap stands at £32.81 million as of 09 September 2021. It currently hovers around at GBX 6.20 with a 52-week high of GBX 29.0.
Futura Medical Plc (LON: FUM)
The company focuses on the development of gels and creams to deliver medicinal treatment through the skins. Its innovative products treat sexual health and pain based on its proprietary, transdermal DermaSys® drug delivery technology.
The company has formed a joint venture with CBDerma Technology Limited, a cannabis firm to develop the cannabidiol products that can be integrated with the company’s Dermasys technology for the treatment of pain. The company has planned an initial investment of USD 1 million.
Futura Medical Plc current market cap stands at £114.83 million as of 09 September 2021. It currently hovers around at GBX 40.00 with a 52-week high of GBX 84.00.