Cannabis Investment
UK Estimated to be a Huge Player in Cannabis Investment
Investment into UK medical cannabis is a promising industry, with a great deal of potential for growth. While the UK has been slow to embrace the medicinal qualities of cannabis, the international evidence suggests it can be extremely beneficial in treating a wide range of conditions.
UK's View on Medical Cannabis:
The UK is a major player in the global medicinal cannabis market, but it currently lags behind other developed nations in terms of legislation.
The UK parliament legalised medical cannabis in November 2018, signaling a major shift towards acceptance of the plant as a viable alternative to traditional pharmaceuticals.
Tilray became the first company to legally grow and harvest medical cannabis in the UK on December 5, 2018. This will pave the way for other companies to do the same and help meet Britain’s growing demand for medical cannabis products.
With over 60% of Brits supporting legalisation and an increasing number of countries legalising or decriminalising the use of marijuana, there’s never been a better time to invest in this burgeoning market.
UK Cannabis Investment:
Total investment in the European cannabis sector has reached £1.02 billion, up 20% from the previous year. As the market continues to grow, there is over 50% increase in the number of cannabis-related IPO’s since 2020. With the rise of venture capital, the sector now makes up over 40 percent of the total capital active in the market. Major corporations and figures such as Anthony Joshua, Snoop Dog, David Beckham and etc, are eager to enter the medical cannabis sector as investors. This is because the MHRA hits an all time high in 2021, reaching approx. £5.4 billion.
As more companies enter the cannabis industry, the UK is becoming the place to raise capital. As a result, the London Stock Exchange is opening up to cannabis start-ups. The UK has made significant strides in becoming a leader in the medical cannabis industry. A string of companies are acquiring the approval to list on the London Stock Exchange. The medicinal cannabis sector has an exciting but voluble investment opportunity. Despite having the necessary regulatory approval, there are still very early days in the industry’s development. Getting the NHS on board is a must in order to make medical cannabis a major industry in the UK.
London City becoming Cannabis Investment Focal Point:
In the first half of 2021, over £35 million was raised in the UK through private transactions. Over £45 million of investment was raise in the London Stock Exchanges. The first IPO of European cannabis was carried out on the London Stock Exchange in 2001. This has set the bar for mainstream corporations within the medical cannabis field.
Moreover, there are around 15 to 20 companies that would have a cannabis theme to their businesses in the UK at the end of the year. Their market caps would vary from millions to a possibility of over one billion. London is projected to become the main focal point for the cannabis market. In order for this happen successfully, it is vital that companies with the correct mission are brought to the market. Those that are looking to jump on the bandwagon should be cautious not to ruin the ethos behind medical cannabis.
