Cannabis Investment
UK Cannabis Laws: Greener on the other side
UK cannabis laws have meant that Tenacious Labs, a British company, has moved its headquarters to Jersey in order to take advantage of the Channel Islands’ decision to relax its rules on cannabis-related products.
The move to Jersey from London was necessary to allow the wellness products company to expand. Nick Morland, the chief executive, said the company uses cannabis ingredients in its products.
Founded in London two years ago, the company plans to enter the market for non-medicinal products containing psychoactive cannabinoids such as THC in countries and states where that is legal.
In contrast, Jersey updated its rules last summer to allow the use of proceeds from cannabis products that are legal in the country where they are sold, but UK laws prohibit investment in non-medicinal THC products.
Having our headquarters in Jersey rather than London as it stands now would be a much more appealing investment, Morland said.
As of now, Tenacious Labs sells wellness products containing CBD, a nonpsychoactive cannabis compound that can be purchased over the counter.
CBD-infused toiletries and lubricants are available through its brands Press Pause and Hoo Raa.
In order to expand its brands, the group plans to raise about $100m as part of its move to Jersey by August.
This move to Jersey, where it has offices as well as a manufacturing plant in Colorado, may make it easier for the company to produce legal THC products at its facility there, where it produces cannabis-infused beverages, edibles, and pet products.
During the past few years, New Jersey has strived to become a global center for the rapidly expanding cannabis industry, in order to diversify away from cattle and potatoes.
UK Cannabis laws prevent exporting products
A medical cannabis company, Northern Leaf, has also chosen Jersey over the UK.
It could have obtained a UK cultivation licence but couldn’t export its products, according to the company, which grows pharmaceutical-grade medical cannabis.
Don Perrott, the group’s CEO, said exporting was essential since the UK cannabis market is not large enough to sustain the business alone. “The UK still has a very small medical cannabis market — about 12,000 patients,” he said.
He estimates Jersey will soon earn just under £100 million a year in tax revenue from the cannabis plant, according to Daniel Houseago, Jersey’s group director for the economy and partnerships.
However, he said Jersey’s plan to attract cannabis companies away from the UK was a risky balancing act. They did this because they did not want to lose their reputation as a financial services centre to their new favorite crop.
According to Houseago, the aim was to establish “the highest regulatory standards in the world”. He envisions cannabis companies headquartered in Jersey but listed on the London Stock Exchange.
