Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Australian cannabis firm plans Frankfurt listing - sources

Published 2018-12-05, 05:59 a/m
Updated 2018-12-05, 06:00 a/m
© Reuters.  Australian cannabis firm plans Frankfurt listing - sources

© Reuters. Australian cannabis firm plans Frankfurt listing - sources

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 (NYSE:GS) 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 (NYSE:KO) 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 (NYSE:MO) MO.N said it was in discussions with Canadian cannabis producer Cronos Group CRON.TO about making a possible investment. stock market has seen a number of cannabis firms going public this year, mainly in North America. 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. 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)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.