Danish firm StenoCare is set to list its shares in Copenhagen next month, becoming the first cannabis company in Europe to cash in on growing investor interest in the marijuana industry.
According to a press release, the firm hopes to raise 18.6 million Danish crowns ($2.9 million) on Copenhagen’s Spotlight exchange. The company, which was founded last year and has since become the first to get clearance to cultivate, produce as well as import medical cannabis in Denmark, plans to start growing marijuana plants next year. Until then, StenoCare will deliver its medical cannabis oil products to Danish pharmacies and hospitals using supplies imported from Canada’s CannTrust Holdings Inc. (TRST). It currently offers CBD Drops STENOCARE, THC Drops STENOCARE and 1:1 Drops STENOCARE. (See also: 5 Marijuana Stock Picks: Cowen)
CEO Thomas Skovlund Schnegelsberg told Reuters that StenoCare is raising money from an initial public offering (IPO) to launch its own production facility, so that it can better serve Danish customers and export to other European markets.
“There are concerns in Germany and other countries about security of supply, because the global production capacity is not big enough to meet demand,” he said. “In order to secure supply to Denmark and other European markets, we need to have our own production.”
At the beginning of this year, Denmark became one of the first countries in Europe to legalize local production of cannabis for medicinal use. Meanwhile, other European countries, including Germany, Britain, the Czech Republic and Italy, have begun to permit prescriptions of medicinal cannabis oil after scientists claimed that the drug can help to ease epilepsy, chronic pain, multiple sclerosis and chemotherapy-induced nausea.
Companies on this side of the pond are seeking to capitalize on this development. Earlier this month, Tilray Inc. (TLRY) was given permission from regulators to sell its cannabis extracts in German pharmacies. Canopy Growth Corp. (CGC) and Aurora Cannabis Inc. (ACB) have also been signing export deals with European governments, buying local companies and opening production facilities in the region. (See also: Tilray Receives Permits to Export to Germany.)
StenoCare will be hoping that its IPO is as successful as those launched by its international peers. Earlier this month, surging investor appetite for U.S. and Canadian pot stocks led the Horizons Marijuana Life Sciences Index ETF (HMMJ) to break the billion-dollar mark for the first time. (See also: A Marijuana ETF Just Crossed $1B in Assets.)