Business

The first cannabis company to stage an IPO on the London Stock Exchange will this week install a City veteran as its chairman and unveil a multimillion pound fundraising.

The first cannabis company to stage an IPO on the London Stock Exchange will this week install a City veteran as its chairman and unveil a multimillion-pound fundraising.

Sky News has learnt that Kanabo Group, which produces medicinal cannabis products and operates an NHS-approved telehealth service, will announce on Tuesday that Ian Mattioli will become its new non-executive chairman.

Mr Mattioli, co-founder and chief executive of the pensions and wealth management consultancy Mattioli Woods, will also invest £500,000 in Kanabo shares as part of a £3m cash call.

Existing management and other shareholders will also participate in the share sale, according to insiders.

He will replace David Tsur, who has chaired Kanabo since it went public in February 2021 and has now become deputy chair.

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Mr Mattioli’s recruitment is likely to be well-received by investors who have seen Kanabo’s stock slump by nearly a third over the last year.

The company now has a market value of less than £14m.

It has seen a string of boardroom departures in recent months.

In March, Kanabo launched Treat It, a new service focused on chronic pain management using plant-based medicine and treatments unavailable through traditional channels.

A spokesman declined to comment on Mr Mattioli’s appointment or its impending fundraising.