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CAPinsideBörse1 MIN READING TIME2018-12-06

Cannabis on the Frankfurt Stock Exchange?

Frankfurst am Main - Australian cannabis maker Little Green Pharma plans to list on the Frankfurt Stock Exchange to raise funds and expand its medicinal products business on its largest European market.

Little Green Pharma is working with Goldman Sachs and Deutsche Bank as so-called Global Coordinators of the IPO, which will be held in the second quarter of 2019. Such a move would make Little Green Pharma the first German cannabis producer ever. The company and the banks, however, rejected a precise opinion on this issue.

 

Cannabis market

Scientists claim that there is increasing evidence that cannabis can relieve epilepsy and other conditions such as chronic pain and multiple sclerosis. This in turn has raised renewed interest in a substance best known for its psychoactive properties through the active ingredient THC ( tetrahydrocannabinol ).

The European market for medical cannabis, which is forecast to grow from around € 100 million this year to at least € 450 million in 2022, is benefiting from a loosening of legislation in countries such as Germany, the UK and Italy. American companies such as Coca-Cola and Molson Coors are very interested in legalizing cannabis in Europe. With their cannabis-containing drinks, they would be able to expand into Europe and storm the market.

In contrast, Canada legalized the use of marijuana for recreational purposes this year and is considered a test for producers expecting global growth as other countries are likely to follow suit. Earlier this week, cigarette maker Marlboro said he was discussing potential investment with Canadian cannabis maker Cronos Group.

The stock market has launched a number of cannabis companies this year, mainly in North America. In October, the Danish cannabis company StenoCare followed suit, almost quadrupling its value. This is still about twice the offer price.

An increase in local demand for cannabis in Canada could affect the volumes available for export to Europe, and producers such as Little Green Pharma could benefit significantly. Little Green Pharma, the market leader in medical cannabis products in Australia, does not publish sales or earnings figures.

 

use

Currently, the use of the substance in leisure time is still banned in most European countries. Only for medical purposes, to alleviate certain diseases and especially pain, it is approved in some European countries.