Snoop Dogg-backed Oxford Cannabinoid surges 50% in trading debut before paring gains

• A company backed by Snopp Dogg that makes cannabinoid-based prescription medicines made its trading debut in London on Friday.
• Shares of Oxford Cannabinoid Technologies opened trading up 50% before erasing gains and moving lower.
• OCT raised 16.5 million pounds ($23 million) before its London-trading debut.

A Snoop Dogg-backed company that develops cannabinoid-based prescription medicines saw big swings in its trading debut. The stock opened 50% above its offer price before erasing gains and trading lower.

Oxford Cannabinoid Technologies raised 16.5 million pounds ($23 million) before its shares were placed at 5 pence each on the London Stock Exchange.

Investors in the company also include tobacco maker Imperial Brands Plc, whose product lineup includes the Winston and Kool brands.

OCT's London debut arrived after a number of initial public offerings in Europe landed lukewarm reception from equity investors during a volatile week for global stock markets, the report said.

Casa Verde Capital LLC, a venture firm in California that counts Snoop Dogg as a partner, holds a stake of around 2%, the report added. Imperial Brands holds about 11% of the OCT's share capital.

Other companies active in the UK cannabis space include Cellular Goods Plc, which has backing from soccer superstar David Beckham.