Cannabis company Rua Bioscience debuts on NZX at 40% premium

Medicinal cannabis company Rua Bioscience listed on the NZX today. Photo / File

Shares in medicinal cannabis company Rua Bioscience debuted on the NZX today at 70c cents, a 20 cent, or 40 per cent premium to their 50 cent issue price.

Rua is the first full equity listing since Napier Port's debut on the exchange early this year.

The only other listed medicinal company is Cannasouth, which joined the NZX in June last year.

The Rua offer was for 40 million shares at 50 cents per share, accounting for a total 28.6 per cent stake in the company.

The company aimed to raise $20 million through the IPO, giving the overall business an implied value of $70m.

Rua is chaired by Trevor Burt, who has previously served on the board of PGG Wrightson and several other entities.

The company's product disclosure statement says it is a pharmaceutical company that is aiming to be a leading producer of cannabinoid-derived medicines.

It was established in 2017 in part to support local economic development in Te Tairāwhiti (East Coast) region.

It was the first company in New Zealand to obtain a licence to cultivate cannabis for research purposes.

"Rua will operate in the research, cultivation, extraction and manufacturing parts of the medicinal cannabis supply chain," the docoment says.

Rua operates only in the medicinal part of the cannabis sector and said it had no plans to enter the recreational cannabis market in New Zealand or in any other country.

Proceeds from the offer will be used to fund investment in Germany and other international target markets, including potential investment in New Zealand branding for those markets, it said.