Israel Desks - February 2020 Edition

32 clearly expected the market opportunities for CBD in the UK and Europe are bound to expand. One would expect the regulatory position in the UK to become clearer and more consistent as this happens, but this may still be some way off. Pharmaceutical Pharmaceutical cannabis products that have been through full clinical trial and are licensed as medicines are legal in the United Kingdom. These products must meet the regulatory standards similar to any drug that is prescribed by doctors as a specific treatment to cure a disease/health issue. Needless to say, the regulation of both prescription and generic drugs in the UK is a matter of some detail, which is beyond the scope of this summary. But as already noted, the practical availability of medicines that use cannabis is still determined by their cost and by spending and budgetary priorities within the UK’s National Health Service. Adult-use Recreational cannabis products remain illegal in the UK. There are no imminent signs that recreational cannabis will become legal in the UK. Supply of cannabis, or possession with intent to supply, are and remain criminal offences under the MDA 1971. The UK Market and Predictions The regulators of the two main quoted securities markets in the UK, the UK Listing Authority and Alternative Investment Market Regulation, have stated they welcome applications from medical and wellness cannabis- related companies and will consider applications on a case by case basis. However, there are as yet very few “pure” cannabis-related companies listed on Alternative Investment Market or the London Stock Exchange, with most being listing on the NEX Exchange (a more junior trading facility that has tended to attract younger or newer companies). The progress towards routine public listings and fundraising in the United Kingdom is hampered by unfamiliarity of both investors and promoters with the cannabis sector and its regulatory framework. In particular, there is perhaps excessive concern still with public policy or legal impediments that might prevent the company stock from, or render it unsuitable for, admission to trading on a UK market. There is also suspicion over whether fundraising