Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Could Kanabo Group shares soar if UK medical cannabis sector matures?

Kanabo Group shares rocketed upon entry to the stock market, rising from an issue price of 6.5p to 20.8p per share on the opening day. Will the rise of specialist medical cannabis clinics benefit Kanabo Group investors?

  • Kanabo Group shares triple on stock market debut
  • £6 million raised via oversubscribed fundraising
  • Kanabo Group blazing a trail for cannabis stocks since Financial Conduct Authority (FCA) approval
  • Want to start trading the Kanabo Group share price? Open an account today

Kanabo Group PLC (KNB.L) experienced an encouraging initial public offering (IPO) upon its UK stock market launch, with an issue price of 6.5p rapidly surging to 20.8p per share on 16 February, the opening day of trading.

The Israeli-founded company, which makes medical-grade vaporisers for cannabis to ease physical ailments, was initially valued by investors at £23.2 million but that value rose after being floated.

Will the FCA’s green light for cannabis stocks create a bullish trading climate?

Avihu Tamir, chief executive officer (CEO), Kanabo, believes the medical cannabis sector is 'set to take off' across the UK and that this 'is just the beginning' for this burgeoning sector. Much of that positivity is founded upon the FCA's approval of cannabis stocks on the London Stock Exchange (LSE).

FCA published new guidance in September 2020 regarding the ability of cannabis companies to float themselves on the LSE. The framework requires all companies to be medicinal or purely CBD related, with no recreational businesses permitted.

Kanabo Group’s exclusive VapePod is the world’s only medicinal cannabis vaporiser, designed to provide metred dosages of cannabinoid extract with no additives or diluents. Kanabo Group intended to use the income generated by its IPO to commence clinical trials of its latest products.

Specialist medicinal cannabis clinics easing supply for vaporisers

The rise of private clinics enables medicinal cannabis to be prescribed on a case-by-case basis, using licensed products like Kanabo’s VapePod to ease ailments relating to chronic pain, as well as neurological or psychiatric conditions. In years gone by, general practitioners have been loathed to prescribe medicinal cannabis, while access to imports was another cause of the product’s bottleneck. These clinics open the way for newly-floated companies like Kanabo.

What other cannabis stocks are there to watch?

MGC Pharmaceuticals Ltd (LSE) also recently floated on the LSE and its share price has also soared from a float value of 2.38p to highs of 7.43p. The Australian-headquartered company developed medicinal cannabis treatments focused on treating Covid-19 patients, as well as individuals affected by epilepsy and Alzheimer’s disease.

MGC Pharmaceuticals made an operating loss in the last year, although revenue growth soared by 213% year-on-year (YoY). Meanwhile, Kanabo Group recorded retained losses of £3.1 million in 2019 and is not yet profitable either. Kanabo, unlike MGC Pharmaceuticals, also has a relatively short trading history which could deter some investors.

Still, the global legal cannabis sector is forecast to expand at a compound annual growth rate (CAGR) of over 30%.

Learn more about the top 20 cannabis stocks to watch

Confident in the future of Kanabo Group shares?

Take your position on UK shares for just a small initial deposit with spread bets or CFDs. Spread bets are completely tax-free, while CFDs are free from stamp duty.1 You can also buy and take ownership of UK shares for just £3 with us.2

Open an account to start trading or investing in UK shares.

Footnotes:

1 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
2 Deal three times or more in the previous month to qualify for our best rate.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.