High as a kite? Danish cannabis firm StenoCare shares surge on debut (updated)
26/10/2018 10:28
(Adds CEO comment, updates shares)
By Jacob Gronholt-Pedersen
COPENHAGEN, Oct 26 (Reuters) - Danish cannabis firm
StenoCare STENO.TE sparked a stock market stampede on Friday
as investors rushed to buy into its shares on their debut,
driven by enthusiasm for the therapeutic benefits of its
products.
The stock nearly quadrupled in price to hit a high of 33.50
Danish crowns in early trade, valuing the company at more than
200 million crowns ($30 million). They had been priced at 8.80
crowns in their initial public offering.
Interest from investors in the stock had been overwhelming,
Chief Executive Thomas Skovlund Schnegelsberg said. "From our
communication with investors, we get a sense that many might
have followed their heart rather than their wallet.
"We've had people contact us who themselves are users of
medicinal cannabis and said they want to support the case,"
Schnegelsberg said.
Scientists say evidence is growing that cannabis can ease
epilepsy and other conditions such as chronic pain, multiple
sclerosis and chemotherapy-induced nausea, prompting renewed
interest in a substance best known for its psychoactive
properties.
Denmark is one of several European countries, including
Germany, Britain, the Czech Republic and Italy, that have
allowed prescriptions of medicinal cannabis oil. Denmark, which
legalised the medicinal use of cannabis from Jan. 1, is also one
of the few European nations to legalise local production.
Recreational use of cannabis is still prohibited in the
country even though Copenhagen's Christiania district is famous
for cannabis-selling booths which are rarely targeted by the
authorities.
StenoCare plans to use money raised in the IPO to launch its
own production to serve local customers and export to other
European markets. It plans a first sowing of cannabis plants in
the first quarter of 2019.
"Our ambition is to have our own products on the shelves
next year, but the exact timing depends on approval from the
Danish Medicines Agency," said Schnegelsberg.
StenoCare currently imports cannabis from Canada's
CannTrust, with first deliveries to Danish pharmacies and
hospitals made last month.
Cannabis is also attracting the interest of consumer product
companies after Canada last week became only the second country
in the world after Uruguay to fully legalise cannabis.
The move has prompted drinks firms such as Constellation
Brands STZ.N , Molson Coors TAP.N and Heineken HEIN.AS to
look into cannabis-infused drinks. urn:newsml:reuters.com:*:nL4N1V63SO urn:newsml:reuters.com:*:nL3N1W33HD
($1 = 6.5602 Danish crowns)
(Reporting by Jacob Gronholt-Pedersen
Editing by Robin Pomeroy and David Holmes)
((jacob.pedersen@thomsonreuters.com; +45 3396 9673; Reuters
Messaging: jacob.pedersen.thomsonreuters.com@reuters.net))