London debut for Oxford Cannabinoid Technologies Holdings plc (OCT) after completing a £ 16.5 million IPO.
OCT, which enjoys the backing of rapper Snoop Dogg and tobacco giant Imperial Brands, is a UK-based pharmaceutical company specializing in cannabinoid drug development with a primary focus on pain relief. OCT’s goal is to be able to sell its first drug by 2027 and become a global leader in the development of prescription drugs that target the endocannabinoid system. CEO John Lucas said the company plans to use the proceeds from its IPO for develop four new drugs. “For medical cannabis the problem is that doctors can’t prescribe it, so we want a pharmaceutical product that we can put in the hands of doctors, in the hands of patients,” Lucas said.
Cannabinoids are naturally occurring chemical compounds found in the cannabis sativa plant and are commonly used for medicinal purposes to treat symptoms such as chronic pain.
OCT shares jumped up + 50% to 7.5p this morning. Based on the placement price, OCT was valued just over 48 million pounds. The tobacco giant Imperial Brands will have a stake of almost 11% post-IPO.
Snoop Dogg is partnering with cannabis focused through his venture capital firm Casa Verde which invested $ 10 million in OCT in 2018 and will own approximately 2% of the company after the IPO.
Snoop Dogg supports plant-based food companies like Outstanding Foods and tech companies like Klarna, Robinhood, and Reddit.