Mar 30 (Reuters) – Medical cannabis cultivator Northern Leaf Ltd raised £ 14 million ($ 19.21 million) in an oversubscribed offering last month, adding five global institutional investors ahead of its London debut later this year, the company’s advisor told Reuters.
The capital increase comes just months after Northern Leaf of Jersey became the only second company to receive a license to grow medicinal cannabis in the British Isles. This reflects the increasing appetite of investors for this sector.
Cannabis is increasingly used to manage mental illnesses such as depression, anxiety, and insomnia, and many European nations are changing their laws to allow the sale of medicinal products made from the plant. Germany is expected to generate sales of US $ 2 billion in medicinal cannabis over the next four years.
Northern Leaf will use the money from the latest fundraiser to grow commercial cannabis at its 75,000-square-foot facility in Jersey and build an extraction facility, said its advisor Tristan Gervais.
The company has also appointed advisors for its debut on the London Stock Exchange later this year, said Gervais, head of cannabis banking at commercial bank Chrystal Capital Partners. ($ 1 = 0.7288 pounds) (Reporting by Shariq Khan in Bengaluru; Editing by Vinay Dwivedi)