The U.K. cash shell Spinnaker Opportunities has agreed to acquire the Israeli cannabis firm Kanabo Research.
This marks the first listing of a cannabis company on London’s principal stock market, helping the Israeli company raise funds for innovation and clinical trials.
Spinnaker recently said the agreement allows the Israeli company to bypass traditional listing rules.
The exact value of the reverse takeover was not disclosed.
Andy Morrison, the chairman of Spinnaker, said the deal was “comfortably within” a range of $6 million to $39 million in size, according to Reuters.
Kanabo Chief Executive Officer Avihu Tamir said earlier this year that he expected to enter unsaturated markets such as the London Stock Exchange instead of other stock markets where cannabis stocks have a bigger presence.
Kanabo products do not contain THC and are delivered by vaping devices.
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.