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Israeli cannabis firm Kanabo to be bought by London's Spinnaker

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(Reuters) – Israel’s Kanabo Research has agreed to be bought by cash shell Spinnaker Opportunities <SOP.L>, in what could lead to the first listing of a cannabis company on London’s main stock market.

In a statement on Monday, Spinnaker did not disclose the value of the proposed reverse takeover, which would allow Tel Aviv-based Kanabo to bypass traditional listing rules.

The companies did not immediately respond to requests for comment on the value.

Spinnaker has also agreed to pump in 200,000 pounds ($256,600.00) into Kanabo, which is looking to grow sales. The Israeli company already has a promise of 1.4 million pounds from the London-listed firm.

Kanabo supplies medical cannabis products that do not contain THC, the psychoactive ingredient in marijuana which causes hallucinations. Its products are delivered through a vaping device.

The London Stock Exchange has not seen many pot firms in its indexes. GW Pharmaceuticals <GWPH.O>, which makes marijuana-based epilepsy treatments, was listed on the bourse’s junior market between 2001 and 2016.

(Reporting by Pushkala Aripaka and Noor Zainab Hussain in Bengaluru; Editing by Maju Samuel)

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