The Financial Times writes..
UK public service broadcaster swaps advertising slots for equity in medical marijuana group Cannaray
Channel 4 has invested in cannabis company Cannaray through its venture capital arm, placing a bet that the European market for medical marijuana and non-intoxicating cannabidiol products will continue to grow. Channel 4, a so-called “public service broadcaster” that is owned by the UK government but funded by advertising, was the lead investor in a funding round that raised £10mn for the UK-based cannabis group.
Scott Maguire, Cannaray’s chief executive,
The two parties would not disclose the size of the deal, in which the broadcaster’s Channel 4 Ventures obtains equity in Cannaray in exchange for advertising inventory on Channel 4, rather than cash. All profits from the venture investing arm are then returned to the TV network.
Vinay Solanki, head of Channel 4 Ventures, said his mission was to back “bold and disruptive categories”, adding that the European landscape for medical cannabis and CBD — a cannabinoid that does not leave users stoned and is sold over the counter — was “expanding rapidly”.
Vinay Solanki, head of Channel 4 Ventures
Channel 4 set up its venture capital arm in 2015 to tap new revenue streams. Solanki said Channel 4 Ventures was “highly profitable”, but would not give further detail. It has previously taken stakes in companies such as Pinterest and magazine aggregator Readly. While the UK legalised cannabis for medical uses in 2018, the take-up has been slow, which industry executives have blamed on excessive red tape.
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Read full article at
https://www.ft.com/content/c5a203a2-6ea1-4fc4-a1bd-c2d3be101f49
