Europe’s First Cannabis IPO Planned for Next Month
[dropcap class=”kp-dropcap”]D[/dropcap]anish cannabis firm StenoCare is preparing to list shares in Copenhagen, Denmark next month, becoming the first European cannabis company to launch an initial public offering (IPO) to take advantage of growing investor interest.
StenoCare is the first Danish company to be granted permission to import, produce and sell cannabis oil in Denmark. The company is planning to raise 18.6 million Danish crowns ($2.9 million) to increase production and grow the local market. Currently, StenoCare imports cannabis products from Canada’s CannTrust Holdings Inc. and distributes them to Danish hospitals and pharmacies, but will begin producing their own cannabis next year to better serve local users and export to neighboring countries, like Germany.
“There are concerns in Germany and other countries about security of supply, because the global production capacity is not big enough to meet demand,” Chief Executive Thomas Skovlund Schnegelsberg said. “In order to secure supply to Denmark and other European markets, we need to have our own production.”
Denmark is currently one of a handful of European countries to allow CBD for consumption and one of the few European countries that has legalized cannabis production. Other European countries that allow CBD are Germany, Italy, the Czech Republic and in some cases, Britain. Earlier this month, Tilray Inc. was given permission from regulators to sell cannabis extracts in German pharmacies, and Canopy Growth Corp. and Aurora Cannabis Inc. have signed export deals with European companies.
Denmark has been known as a cannabis mecca with Christiana, an anarchist district in Copenhagen where cannabis and hash have been openly traded for decades. Companies have also been given the green light to grow cannabis in Odense, the third-largest city in Denmark.
The subscription period for the IPO begins Sept. 24 and ends Oct. 9. Shares are being offered at 8.80 Danish crowns with the firm being valued at 59.7 million Danish crowns.
