A British company that developed medicine based on cannabis reported to be leaving the London market and continue trading their stocks only in the US (Nasdaq).
GW Pharmaceuticals that became famous in 2001 decided to leave the junior market in London. The main reasons are the lowering of the prices and putting an end to the difficulties connected with double trading. However, the company’s headquarters is still situated in the UK, and the head says that they are still committed to the local market.
The company is currently in the process of receiving a regulatory approval for their cannabis-based medicine named Epidiolex. It is reported to be helping people who suffer from rare kinds of epilepsy. Currently, they provide about 420 workplaces, and the number is planned to be increasing once the drug is fully developed.
The GW Pharma chief executive, Justin Gover, says that their Nasdaq listing have them a possibility to gain about $800 million from investors. “With the vast majority of shares now held and traded in the US in the form of ADRs, the time is right to reduce the complexity and expense of a dual listing,” he said.
“The proposed cancellation of the AIM listing has no impact on GW Pharma’s UK presence, which has significantly increased in recent years. We remain firmly committed to bringing important products to the global market — products that are both researched and manufactured in the UK.”
Currently 78 per cent of GW shares are traded on Nasdaq and in the past six months about 94 per cent of trading has been in the US.
In March the shares soared on both sides of the Atlantic when GW revealed that Epidiolex, which experts hope will become the first approved treatment of epilepsy, had produced encouraging results during clinical trials.
GW Pharma shares in London fell by 1 per cent, or 9p, to 842p and slipped back 0.8 per cent, or $1, to 124.15 in early trading in the US.