FastForward Innovations Ltd (LON:FFWD) has added to the burgeoning medical cannabis portion of its portfolio with an investment in Kanabo Group Plc (LON:KNB) as part of its London initial public offer (IPO).
The AIM-listed investment company invested £62,500 as part of Kanabo’s £6mln oversubscribed placing at a price of 6.5 pence.
FastForward’s investment immediately paid off as Kanabo, which boasts that it has the only medically-approved vaporisation device on the market, made its debut on the London Stock Exchange and saw its shares surge over 200% to 19.8p by mid-afternoon on its debut.
Tel Aviv-based Kanabo, which draws upon an Israeli market where cannabis was approved for medical use in the 1990s and a state-regulated medical cannabis program was initiated in 2007, has already started selling its VapePod device, which provides metered dosages of its proprietary cannabis-based oil formulations, as part of a pilot scheme.
As of the first day of dealings, FastForward Innovations had a holding of 961,538 ordinary shares in Kanabo, representing 0.27% of total issued share capital.
Emmac, one of Europe’s leading producers and supplier of medicinal cannabis, hemp and other derivative products, has been in the portfolio since March 2019, with FFWD’s first medical cannabis investment being Nuuvera Inc in 2017, which was exited in 2018 after it was taken over.
The portfolio also includes an investment in Yooma, a hemp-based wellness products firm that is planning to partner with some of Pan-Asia’s leading social and e-commerce platforms to create the first hemp and cannabidiol (CBD) lifestyle company in Asia.
Ed McDermott, CEO of FastForward, said: “We are delighted to see another cannabis focussed company listing here in London and, although we are disappointed to have been heavily scaled back in the oversubscribed placing, we are pleased to see Kanabo shares having a strong market debut and look forward to further progress.”
Shares in FFWD were up 5% to 11.2p apiece.