Cannabis companies are vying to be first of their kind to list on the London Stock Exchange after the UK financial watchdog last year gave the green light to manufacturers of products that use the drug for medical purposes. Kanabo, which is developing a means to distribute cannabis-derived products for medical patients through vaporisers, is in talks with investors during a roadshow ahead of an expected initial public offering next month. 

MGC Pharmaceuticals, which sells THC tinctures and is developing a cannabis-based epilepsy drug, is in the final stages of preparing to list in London and hopes to raise up to £5m.

The country legalised medicinal cannabis in 2018 but companies in the sector struggled to tap into the UK capital market owing to uncertainty over listing regulations.

This prompted the Financial Conduct Authority to set out rules last September that would open the door to those providing the drug for medical use.

Tel Aviv-based Kanabo will be floated through a reverse takeover of a special purpose acquisition company (Spac) called Spinnaker Opportunities, which listed on the LSE in 2017.

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