UK cannabis companies and shares to watch in 2026

What are cannabis stocks?

Cannabis stocks are shares in companies whose primary business relates to the cultivation, manufacture, distribution or retail of cannabis and cannabis-derived products. The sector spans three broad categories: medical cannabis companies focused on pharmaceutical-grade cannabinoid medicines; consumer cannabis operators selling recreational or wellness products in legalised markets; and ancillary businesses providing products and services to the industry without directly handling the plant. 

For UK investors, access to the sector is primarily through our share dealing account, covering both AIM-listed UK names and international stocks traded in the US and Canada.

The legal position in the UK is important context: recreational cannabis remains illegal. Medical cannabis was legalised for prescription in November 2018, creating a regulated pathway for pharmaceutical companies but not a consumer market. This distinguishes the UK investment opportunity from that in Canada, Germany or many US states where recreational use is permitted.

The UK cannabis sector in 2026: what has changed

The period from 2023 to 2026 has seen a significant shakeout in the UK's listed cannabis sector. Several names that were prominent in the original 2023 version of this article have since delisted, collapsed or significantly restructured.

Most notably, Celadon Pharmaceuticals (CEL) cancelled its AIM listing on 8 August 2025, after a series of failed funding attempts left the company with limited working capital. Celadon had been building the UK's most advanced pharmaceutical cannabis facility in the West Midlands, and now trades on the JP Jenkins secondary market for private securities rather than on a public exchange. Oxford Cannabinoid Technologies similarly collapsed, rebranding as Octavian Therapeutics before ceasing operations after failing to secure sufficient funding for its drug trials. Kanabo Group has also fallen into administration, removing one of the market's most recognised medical cannabis brands from the AIM board.

The UK cannabis biotech sector has been particularly hard hit by the challenging fundraising environment for speculative life sciences companies, with many operators moving their clinical trials to Australia, which can offer more favourable subsidies for drug development.

Source: Business of Cannabis.

UK cannabis companies to watch

Ananda Developments 

Ananda Developments is now the leading UK-listed cannabinoid medicine developer following the exits of Celadon and Oxford Cannabinoid Technologies. The company is developing MRX1, a cannabidiol-based compound targeting chronic inflammatory pain, which has been registered on ClinicalTrials.gov following completion of Phase 1 pharmacokinetic data. Ananda has joined a number of UK biotech companies in moving its later-stage clinical work to Australia, where drug development subsidies make trials significantly more cost-effective. MRX1 has also achieved two years of stability data, a key regulatory milestone. The company remains a small, arguably high-risk AIM-listed stock with no commercial revenues.

Chill Brands Group

Chill Brands focuses on CBD consumer wellness products, widely deemed to be a lower-risk category than pharmaceutical development but one with margin pressure from a crowded market. The company has faced the same AIM liquidity challenges as its peers and is often of interest to investors seeking exposure to the consumer CBD category rather than pharmaceutical cannabis. It remains among the AIM-listed names referenced in current cannabis sector coverage in mid-2026.

Associated British Foods

Associated British Foods is an indirect cannabis play through its subsidiary British Sugar, which signed an agreement with Jazz Pharmaceuticals (formerly GW Pharmaceuticals) to grow high-CBD cannabis for pharmaceutical purposes in converted greenhouse space. With a market cap of approximately £14 billion and primary business in food brands (Kingsmill, Twinings) and Primark, ABF is a very indirect and small-allocation cannabis exposure within a much larger conglomerate. It is the most liquid and widely considered the lowest-risk cannabis-adjacent UK stock.

Global cannabis stocks to watch

For investors seeking exposure to larger, more liquid cannabis companies, the most widely watched names are listed in the US and Canada:

A note on US cannabis stocks: most US multi-state operators trade on OTC markets rather than major exchanges due to federal law. This limits their accessibility from UK platforms. Progress on US federal rescheduling of cannabis from Schedule I to Schedule III has been ongoing but remains subject to legal and regulatory uncertainty, and the timeline for any meaningful market access improvement remains unclear.

What drives cannabis stock prices?

1. Regulatory developments

News on legalisation, rescheduling or clinical approvals moves cannabis stocks sharply in both directions. US federal rescheduling, in particular, would be transformative for American MSOs.

2. Funding and cash position

Most cannabis companies are pre-revenue or loss-making and depend on external capital. Funding announcements and cash runway disclosures are closely watched.

3. Clinical trial data

For pharmaceutical cannabis companies, trial results from MHRA, FDA or TGA-approved studies are the primary value driver.

4.  Market sentiment

Cannabis stocks are highly correlated with risk-on/risk-off sentiment and tend to move with the broader small-cap and biotech complex rather than in isolation.

5.  M&A activity

Consolidation has been a dominant theme as weaker operators exit and stronger ones absorb their assets at distressed valuations.

Cannabis stocks FAQs