Several European cannabis start-ups are planning to go public in New York, aiming to benefit from a US proposal to reclassify marijuana as a less dangerous drug and recent decriminalisation in Germany, reports the Financial Times.
Grow Group PLC, a London-based medical cannabis distributor, plans an initial public offering on Nasdaq in early 2025, targeting a valuation of over £100 million.
Lisbon-based Somai Pharmaceuticals, involved in medical cannabis extraction and distribution, is seeking a €250 million valuation in a Nasdaq IPO, with a secondary listing on the Toronto Stock Exchange or LSE.
Wellford Medical, a London cannabis manufacturer and distributor, is also considering Nasdaq. Co-founder Joshua Roberts sees potential in the US reclassification and German legislative changes, expecting investor interest to rise.
The US Drug Enforcement Administration’s proposed reclassification could reduce taxes on cannabis businesses and facilitate clinical research. Meanwhile, Germany decriminalised cannabis possession and cultivation in April, enhancing its status as Europe’s largest medical cannabis market.