AVIDA Global has stated that it intends to use the capital raised to fund its expansion into the UK and European cannabis market.
A British cannabis company known as AVIDA Global has raised approximately £1.6 Million with the backing of a UK peer, Lord Mancroft.
The company already owns a 100-acre farm in Colombia which will be used for cultivation purposes and has begun aggressively pursuing pharmaceutical partnerships.
Quality really matters. Cannabis picks up anything in the ground around it, from heavy metals to pesticide residue. AVIDA Global grows their cannabis in coconut substrate so the plants can't absorb anything harmful from the soil around them, and its purity is checked on site to ensure its pharmaceutical grade. AVIDA Global CEO, David Kirby
Unfortunately, one element that has been holding the company back is that many doctors in the UK are hesitant to prescribe cannabis to patients, even when there is a legitimate need for the drug.
As a result, AVIDA is still struggling to established itself in the UK market, despite it being one of one of the company's core strategic focuses.
"Even though it's now legal in the UK, doctors still aren't prescribing it. They don't understand it, they're not trained about it," says David Kirby, the chief executive of AVIDA Global
"More and more clinicians are being trained. The reluctance to prescribe simply comes from a lack of understanding."
However, things are now beginning to change. While the UK state sector is still lagging behind when it comes to cannabis prescriptions, the country's four private cannabis clinics have stepped in to pick up the slack.
For example, Saphire Clinics have recently confirmed that up to 2,000 patients were currently receiving cannabis treatment via their healthcare network.
The majority of these patients approached the clinic for assistance with chronic pain or anxiety-related issues, and according to Professor Mike Barnes, this trend is on track to grow in the coming years.
"It's here to stay. Fifty countries have legalised medicinal cannabis, and the NHS will pick up, it's unstoppable," Barnes said.
"I'd love to see more startups here in the UK working on it. Cannabis is a very personal product and we need young, nimble companies who can produce products that suit different people."
"And we really don't want to see the emergence of big-cannabis, who would produce bland products," Barnes says, which is something he believes is already starting to happen."
Barnes also explained that the private sector is currently experiencing a 30% increase in prescriptions each month, before predicting that the NHS will likely soon follow suit.
This pot stock could reach new heights in 2020 due to Coronavirus
The COVID-19 pandemic is showing no signs of slowing down, and as global markets enter meltdown many cannabis companies are feeling the effects of capital crunch.
While the market crash will continue for some time, it represents a golden opportunity for investors who are capable of riding out the volatility until share prices rally.
Luckily, one pot stock has developed antimicrobial drug that can already treat two superbugs while limiting their ability to develop antibiotic resistance.
Investors can also start picking up shares at rock bottom prices, as global investor sentiment continues to dampen thanks to COVID-19.
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