Snoop Dogg-backed cannabis research firm to list in London

Oxford Cannabinoid Technologies is joining a wave of other cannabis-related companies floating in London

A British cannabis research firm that is backed by rapper Snoop Dogg will float in London later this week, becoming the latest in a flurry of marijuana-based companies to opt for a UK listing. 

Oxford Cannabinoid Technologies, a biotech company that was set up in 2017 to develop pain-relief medicines based on cannabis compounds, is expected to land a valuation of around £51.5m when it floats, and raise £16.5m.

The company will use the funds to prepare drug candidates for clinical trials from next year. OCT said it was aiming to commercialise its first drug within the next six years. 

It will be admitted to the London Stock Exchange's main market on Friday, crystallising around £15m worth of fortunes for co-founders Neil Mahapatra and Gavin Sathianathan. 

The decision to pick London comes after the Financial Conduct Authority issued guidance last autumn that gave the green light for medicinal cannabis-related businesses to float on the LSE.

Medicinal cannabis has been legal in the UK since 2018, but Mr Mahapatra, now the OCT chairman, said the FCA approval made it easier to come to the London market.

Interest in cannabis-related drug development has spiked over the past year, with market leader GW Pharmaceuticals being snapped up for $7.2bn (£5.1bn) in a deal that completed earlier this month. The acquistion landed the company's senior executives an estimated payday of $130m. 

Two other medicinal cannabis companies unveiled plans to float in London earlier this year - Israel-based Kanabo and Australia's MGC Pharmaceuticals.

OCT is expecting to come up against fewer regulatory hurdles by developing drugs which resemble cannabinoids, and do not actually rely on compounds from cannabis plants, although it is also working on cannabinoid derivatives.

The company has done various research projects with the University of Oxford into the potential benefits of cannabis compounds for conditions such as arthritis. 

Its backers include Kingsley Partners, where Mr Mahpatra is a managing partner, as well as Snoop Dogg's Casa Verde Capital and tobacco giant Imperial Brands. 

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