At the moment buying cannabis stocks in the U.S. is a hot topic and is becoming more readily available on platforms.
Investment bankers are now circling Europe as one of the biggest underwriters of stock offerings for weed-related companies, Canaccord Genuity Inc. appointed head for European investment banking for cannabis in July.
Big Appetite from All over the World
Tristan Gervais, a banker for London based Canaccord who is heading the push in the region said that there has been significant interest for stock market listings in Europe from medical cannabis companies. He said that there are companies with a huge appetite, from all over the world who are looking to London to raise capital.
That’s not all …
In the past year Bryan Garnier & Co, the French Bank engaged a Paris based analyst to start covering the Canadian sector. It gets better still, a London based analyst was also recruited by Jefferies Financial Group Inc. to cover North American pot stocks.
Capitalizing with Mergers and Acquisitions
With the growing acceptance of cannabis in Europe, mainly for medical uses, businesses are laying the groundwork as they foresee an increase in stock sales together with mergers and acquisitions and are looking to capitalize on it.
Chief executive of London-based law firm Memery Crystal LLP, Nick Davis, said that at the moment it is a full-time job advising firms in the CBD and medical cannabis sector on raising money. Some of the companies are looking to list on the junior AIM market including the London Stock Exchange.
Today, the London Sativa Investments Plc. is the biggest listed marijuana company with around 26.8 million pounds. While the leader in the global pot industry is Canada, Canopy Growth Corp. with a market value of $16 billion, $7 billion for Tilray Inc and $7 billion for Aurora Cannabis Inc.
Will Not Be Easy
Chairman of London based law firm McCarthy Denning Ltd., Richard Beresford said that European companies who want to catch up to Canada’s cannabis won’t find it easy and that success won’t be cheap. He said that firms will have to invest money on research and safety of their products and find a reliable supply of cannabis. He also said that there are regulatory issues and would need to hire top-notch advisory boards.
Brett Hyndley analyst at Seaport Global Securities LLC said that cannabis producers in Canada are way up the front of American and European companies. Aurora and Canopy Growth are already taking advantage of the situation and are moving into production in Europe.
European companies and investors who are eager to emulate the Canadian boom in pot-stock listings are now vying for position so that they can take full advantage of the interest in cannabis.
Medical Cannabis Oil
Last week a London listed cash shell Spinaker Opportunities Plc., agreed to take over Kanabo Research Ltd. They are doing R&D for formulations of medical cannabis oil and have the distribution rights for a pharmaceutical grade vaporizer.
Medical Cannabis for Animals
Paris based Gour Medical AG last month shifted their focus to medical cannabis for animals and raised funds to help finance the shift.
Medical Cannabis for Pharmaceutical Applications
German-based pharmaceuticals, Dermapharm Holding SE said on Tuesday that they would buy a stake in a Dutch firm who produces medical cannabis for pharmaceutical applications.
Cultivation of Medical Cannabis
Dansh, StenoCare A/S publicly announced in September that they were planning to cultivate medical cannabis.
Do you want to get a taste of Pot Stock Mania?
Plus 500, the leading CFD/Forex broker, who is listed on the London Stock Exchange recently launched Cannabis Index CFD which is based on the price of the BGCANG BITA GLOBAL CANNABIS GIANTS on their platform. It includes the giant cannabis companies such as Tilray, GW Pharmaceuticals, and Aurora Cannabis.
What’s the real story?
When trading, buying or selling an index you will be susceptible to the volatility of the index. This can occur because of any legal or regulatory change in medical marijuana, so you could expect big moves in the index. At this time they are very high-risk investments.
You have an added advantage of trading with Plus500 as they offer many advanced and powerful tools and features that allow you to have control on your account at all times.
They offer many perks such as:
• Alerts on price movements and Change %
• Negative balance protection
• Email and push notifications on market events, free
• Stop Limit/Stop Loss/Trailing Stop
• Guaranteed Stop
• Tight spreads
• No commission charges
• Free demo account
• Live news feeds, education program and lots more
Bottom Line?
Plus500 offer you the means to explore the cannabis market, offering innovative and powerful tools to make successful trades.
84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money
