The London Stock Exchange (LSE) experienced a bumper crop of initial public offerings (IPOs) on Tuesday from a range of sectors, including the first cannabis company to IPO on the market.
Kanabo Group Plc (LON:KNB), an Israeli company that makes vaporisation and inhalation technology for cannabis, said it had raised £6mln through an oversubscribed fundraising of a placing and subscription of 6.5p per share ahead of its float on the exchange, which will give it an initial market cap of around £23.4mln.
The company completed its IPO through a reverse takeover of Spinnaker Opportunities Inc, which has since changed its name to Kanabo Group and following admission will acquire Kanabo Research Limited for £15mln which will be satisfied by the issue of around 230.8mln new shares in the company.
“We are proud and happy to be listed on London Stock Exchange. I would like to thank Spinnaker Opportunities and the whole transaction team for helping us to reach this goal and to thank new and existing shareholders who have invested in our pioneering endeavour”, Kanabo chief executive Avihu Tamir said in a statement.
“We share the enthusiasm shown by the investment community in the UK for this important day. The reaction we have seen since we published our prospectus two weeks ago has been overwhelming. With the support of the FCA and London Stock Exchange, the medical cannabis industry is set to take off in the UK and in Europe, similar to what’s happened in North America in recent times. This is just the beginning”, he added.
Cornish Metals arrives on AIM
Meanwhile, Cornwall-focused mineral explorer Cornish Metals Inc (LON:CUSN) began its first day of dealings on the AIM market after raising £8mln through an oversubscribed placing with institutional and other professional investors.
The firm also said it had raised around £206,000 through an offer to high net worth investors, with a total of 117.2mln shares issued as part of the placing and subscription at a price of 7p each.
Cornish said the proceeds of the IPO fundraising will be used to conduct a drill programme at its United Downs copper-tin project to determine the resource potential of a 1,000-metre strike section of the target area, as well as to conduct initial fieldwork on other high priority exploration targets within trucking distance of the South Crofty mine in Cornwall, and for general working capital purposes.
The firm added that it expects to begin drilling at the United Downs project in late March or early April.
“Listing on the AIM Market represents a significant milestone for the company and offers investors from the United Kingdom the opportunity to be a part of the company’s growth as we work towards the goal of becoming a domestic supplier of technology metals fundamental to a green economy”, Cornish Metals chief executive Richard Williams said in a statement.
Cordiant Digital Infrastructure completes trifecta
Completing the trio of IPOs is Cordiant Digital Infrastructure Limited (LON:CORD), which said it has listed on the specialist fund segment of the LSE’s main market.
The firm, which mainly focuses on investments in digital operating digital infrastructure assets such as data centres, mobile telecommunications/broadcast towers and fibre optic network assets in Europe and North America, previously completed a £370mln ahead of its listing through the issue of shares at 100p each.
The figure was above the company’s IPO target of £300mln announced in late January and will be used to help launch the trust.