Is it the right time to invest in these 5 FTSE listed cannabis stocks?

Highlights 

  • UK has made reasonable progress in legalising the medicinal cannabis.
  • Listing regulation for the medical cannabis companies was modified in September 2020, after which many companies has listed on the London Stock Exchange.

Very recently, in 2018 the UK legalised the medicinal use of cannabis. Medical cannabis, which is used to treat the pain and specific illnesses was first legalised in the United states for the treatment of Alzheimer's disease and other medical conditions.

Although, the UK has made reasonable progress in legalising the medicinal cannabis. But some countries are way ahead of the UK in capturing the market share, like Germany which legalised cannabis in 2017, and has grown into the largest medicinal cannabis market in Europe with 185,000 medicinal cannabis prescriptions issued last year.

The Financial Conduct Authority (FCA) announced the revised guidelines for the cannabis-based companies in September 2020, which stated that the medical cannabis companies based in the UK will be eligible to list on the London Stock Exchange (LSE) after which a number of companies filed for the initial public offering (IPO) giving investors an opportunity to be a part of legalised cannabis market.

Let us look at FTSE listed stock from the cannabis sector that could offer potential gain to investors:

Kanabo Group Plc (LON: KNB)

The company researches and develops cannabis-derived products for medical patients, and non-THC products for CBD consumers.

The company has launched medicinal cannabis cartridges which is currently available in the UK market under the consumer brand name NOIDECS. The cartridges based medicinal cannabis extract formula will be sold through the LYPHE Group’s UK clinics and dispensaries. Kanabo Group Plc has also signed a purchase agreement on 2 August 2021, with Hellenic Dynamics S.A, whereby Kanabo will buy up to 1000kg per year of EU GMP certificated cannabis flowers subject to regulatory approval

Kanabo Group Plc’s current market cap stands at £66.41 million as of 16 August 2021.

Cellular Goods Plc (LON: CBX)

The company was established to research and develops the cannabinoids consumer products. It provides the premium quality products at affordable price which ensure the company’s products are accessible to everyone.

The company successfully raised £13 million through oversubscribed IPO in February 2021, which brings the company net cash balance at £11.28 million. The company is on track to roll out three skincare consumer products by the end of this year. Also, the company has signed multiyear supply agreement with Chanelle McCoy Health Ltd and Willow Biosciences to supply raw material for its products manufacturing.

Cellular Goods Plc’s current market cap stands at £35.84 million as of 16 August 2021.

MGC Pharmaceuticals Ltd (LON: MXC)

The company engages in the production and supplies of affordable phytocannabinoid derived medicines to patients globally. The company’s products have seen growing demand from the patients in the European, North America and Australian market. The company’s stock has dual listing on the Australian and London Stock Exchange.

The company reported record revenue of USD 945,000 in the June quarter. Also, the company has completed major construction at the Malta GMP facility, with operation expected to begin in October 2021.

Moreover, the company also completed acquisition of MediCaNL, a global clinical research company, which will give significant cost synergies to the company.

MGC Pharmaceuticals Ltd has a market cap of £40.23 million as of 16 August 2021.

Also Read: 4 FTSE Cannabis Stocks Under Lens as BAT Buys 20% Stake in Organigram

Zoetic International plc (LON: ZOE)

The company has transformed itself from the oil and gas company to consumer focused cannabis products company.

The company is in middle of transformation with planned change in the company’s name to Chill Brand Group, which is aligned with the company’s current online website Chill.Com through which the company sells the tobacco alternative product.

The company’s products are presently sold via online website and 2500 multi state retail outlets. A new anti-ageing skincare product is expected to be launched soon, which will be an addition to CBD cosmetics products’ Zoetic range.

Zoetic International plc current market cap stands at £79.16 million as of 16 August 2021.

Oxford Cannabinoid Technologies Holding Plc (LON: OCTP)

The company operates in the Cannabinoid market with focus on the development of cannabinoid derivatives products which address the medical needs.

The company has raised £16.5 million through its IPO listing in May 2021. It has signed a service agreement last month with the Evotec SE, which is a Hamburg based drug discovery and development platform. The agreement will help the company expedite its clinical trials of cannabinoid products.

The company’s current market cap stands at £26.65 million as of 16 August 2021.

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