Medicinal pot stocks are about to have a new home on the London Stock Exchange as medicinal marijuana companies have been cleared by the UK’s financial regulator.
While this is great news for the marijuana movement, firms who still sell marijuana to recreational users will continue to be banned from the exchange.
The Financial Conduct Authority said businesses that grow and sell recreational cannabis, even in countries such as Canada where it is legal, cannot list in London because of the Proceeds of Crime Act.
The income from the sale of cannabis and cannabis oil outside the UK could constitute “criminal property” under the act as it covers conduct abroad that would constitute a crime if it happened in the UK.
“For medicinal cannabis and cannabis oil companies with overseas activities, the company will need to satisfy us that their activities would be legal if carried out in the UK,” the FCA has said.
“We will also need to understand the legal basis of the company’s overseas activities, for example the nature of the local licensing and the licences the company holds.”
Roby Zomer, co-founder and managing director of the pharmaceuticals firm MGC commented, “MGC started the process of looking to list on the London markets over a year ago. During that time we have struggled with the pace of the process but have continued to push forward, with a view to being one of the first UK-listed medical cannabis companies.”
“Given the news today, we will again push ahead with our listing ambitions for the business, which will support its future growth and offer investors the opportunity to access a significant and growing opportunity.”
Nick Davis, chief executive of the law firm Memery Crystal remarked, “This is great and overdue news for the medicinal cannabis sector in the UK, both for medicinal cannabis companies themselves, but also for patients, who have yet to receive easy access to the products they need.
“Our firm, and a number of our clients, have worked hard over the past few years to have medical cannabis companies admitted to the London markets. With greater clarity from the FCA we hope investors will also support companies coming to market to drive the sector forward.”
