Australian cannabis firm plans Frankfurt listing - sources (updated)
05/12/2018 10:59
(Adds details, background on other cannabis companies)
FRANKFURT, Dec 5 (Reuters) - Australian cannabis grower
Little Green Pharma is planning a Frankfurt stock market listing
to raise money to expand in its largest European market for
medicinal uses of the plant, people close to the matter said.
The company is working with Goldman Sachs GS.N and
Deutsche Bank DBKGn.DE as so-called global coordinators of the
initial public offering (IPO), which may take place in the
second quarter of 2019, the people said.
Such a move would make Little Green Pharma the first
cannabis producer to list in Germany.
The company and the banks declined to comment.
Scientists say evidence is growing that cannabis can ease
epilepsy and other conditions such as chronic pain and multiple
sclerosis, prompting renewed interest in a substance best known
for its psychoactive properties.
The European market for medicinal cannabis, forecast to grow
from around 100 million euros ($113 million) this year to at
least 450 million in 2022, is benefiting from a relaxation in
legislation in countries like Germany, Britain and Italy.
For now, recreational use of the substance, which has
prompted interest from companies such as Coca-Cola KO.N and
Molson Coors TAP.N for cannabis-infused drinks in North
America, remains prohibited in most of Europe.
Canada, by contrast, this year legalised recreational use of
marijuana, and is seen as a testing ground for producers that
expect to expand globally as other countries follow suit.
Earlier this week, Marlboro cigarette maker Altria MO.N
said it was in discussions with Canadian cannabis producer
Cronos Group CRON.TO about making a possible investment.
urn:newsml:reuters.com:*:nL1N1Y823D
The stock market has seen a number of cannabis firms going
public this year, mainly in North America. urn:newsml:reuters.com:*:nL2N1Y10TN
In October, Danish cannabis firm StenoCare STENO.TE
followed suit and nearly quadrupled in value on its stock market
debut. It still trades at roughly twice its offer
price. urn:newsml:reuters.com:*:nL8N1X627H
A surge in local demand for cannabis in Canada may squeeze
volumes available for export to Europe and growers such as
Little Green Pharma may benefit from that, people familiar with
the matter said.
Little Green Pharma, which says it is the market leader in
Australia for medicinal cannabis products, does not publish
sales or earnings figures.
($1 = 0.8821 euros)
(Reporting by Arno Schuetze; Editing by Thomas Seythal and Mark
Potter)
((arno.schuetze@thomsonreuters.com; +49.69.7565.1197; Reuters
Messaging: arno.schuetze.reuters.com@reuters.net))