Medical cannabis firm Northern Leaf raises 14 mln pounds before London IPO
30/03/2021 19:59
March 30 (Reuters) - Medical cannabis cultivator Northern
Leaf Ltd has raised 14 million pounds ($19.21 million) in an
oversubscribed offering over the past month, adding five global
institutional investors before its London debut later this year,
the company's adviser told Reuters.
The capital raise comes just months after Jersey-based
Northern Leaf became the only second firm to receive a license
to grow medical cannabis in the British Isles, and reflects the
rising investor appetite for the sector.
Cannabis is increasingly being used to cope with mental
health conditions including depression, anxiety and insomnia and
many European nations are tweaking their laws to allow sale of
medical products derived from the plant. Germany is expected to
cross $2 billion in medical cannabis sales over the next four
years.
Northern Leaf will use the money from the latest fund raise
to grow commercial cannabis at its 75,000 square feet facility
in Jersey and build an extraction plant, its adviser Tristan
Gervais said.
The company has also appointed advisers for its debut on the
London Stock Exchange later this year, Gervais, head of cannabis
banking at merchant bank Chrystal Capital Partners said.
($1 = 0.7288 pounds)
(Reporting by Shariq Khan in Bengaluru;
Editing by Vinay Dwivedi)
((Shariq.Khan@thomsonreuters.com; Within U.S.+1 646 223 8780,
outside U.S. +91 80 6182 2681; Twitter: @shariqrtrs;))