RNS Number:8569M
GW Pharmaceuticals PLC
27 June 2003



 Not for release, publication or distribution, in whole or in part, in, into or
  from the United States, Canada, Australia, the Republic of Ireland or Japan.
                                        
Embargoed until 0700                                               27 June 2003



                             GW Pharmaceuticals plc

                            ("GW" or "the Company")


            GW Raises #20 Million to Accelerate Development Programme


GW is pleased to announce that it is raising approximately #20 million before
expenses through a placing for cash of 9,904,395 new GW ordinary shares at 200
pence per share.


The new shares, which represent approximately 9.87 per cent. of the Company's
issued share capital prior to the placing, have been placed with a small number
of existing and new institutional investors by the Company's broker, Collins
Stewart. The new shares represent the maximum number of shares available for
issue under the authorities approved by shareholders at the Company's Annual
General Meeting on 26 February 2003. The placing price represents a discount of
approximately 8.5 per cent. to the closing middle market price on 26 June 2003.


The gross proceeds of the placing of #19.8 million (#19.0 million net of
expenses) will provide further balance sheet strength to bring forward Phase III
clinical trials of additional cannabinoid products for new therapeutic markets
and to accelerate the development of GW's innovative Advanced Dispensing System
for secure drug delivery in the treatment of drug addiction. These programmes
further enhance prospects for future product approvals, additional licensing
agreements and income streams. The balance of the proceeds will be used for
working capital purposes. GW has placed these new shares to build on its
achievements to date and to consolidate the Company's lead position in
cannabinoid and botanical medicines.


The fundraising is in addition to the #5 million already received under the
recently completed agreement with Bayer AG. Further milestones of #20m are
payable under this agreement. Such funds are to be applied to the launch of
Sativex(R), GW's lead product, in the UK, to secure international regulatory
approvals for the product and to build the Sativex brand.


The placing was significantly oversubscribed and in order to respond to demand
from institutions, the Board of GW has released 10 per cent. of shares held by
directors. The Directors have made available a total of 4,235,000 shares to be
placed with institutions at 200 pence per share.


Dr Geoffrey Guy, Executive Chairman of GW, said: "Since GW was listed on AiM two
years ago, we have made significant progress in all aspects of the business,
with development programmes running to schedule and on budget. Sativex, our lead
product for multiple sclerosis and neuropathic pain, is now awaiting regulatory
approval in the UK where it will be marketed by our partner, Bayer AG.
Throughout this period, balance sheet strength has played an important part in
the Company's success - enabling us to fund a wide-ranging clinical programme
and underpinning our negotiations with commercial partners.


"Our research findings and the clinical data we have gathered to date have
confirmed our early belief in the enormous potential of cannabis-based medicines
and, having established a clear first-mover advantage in this field, we believe
GW is poised to fully exploit this potential.


"The placing proceeds will enable us to accelerate the development of additional
income streams arising from our core skills in phyto-medicines and secure
dispensing technology. The placing also widens GW's institutional shareholder
base, providing a shareholder structure more appropriate for the next phase of
the Company's growth. We have considerable ambitions for the Company's
development and this fundraising will enable GW to further its plans to move
into the top tier of the UK biopharmaceuticals sector."


Application will be made today for the new shares to be admitted to the
Alternative Investment Market of the London Stock Exchange ("Admission"). The
placing is conditional on Admission, which is expected to become effective on 4
July 2003. When issued, the new shares will rank pari passu in all respects with
the Company's existing ordinary shares. Following the placing, GW will have a
total of 110,246,179 ordinary shares in issue.

                                    - Ends -


Enquiries:

GW Pharmaceuticals plc                                 (27/06/03) 020 7067 0700
Justin Gover, Managing Director                   (Thereafter) + 44 1980 557000

Weber Shandwick Square Mile                                   + 44 20 7067 0700
Kevin Smith


The offer for securities in the Company will not be made, directly or
indirectly, in or into the United States, Canada, Australia, the Republic of
Ireland or Japan.  Accordingly, copies of this press release are not being and
must not be mailed or otherwise distributed or sent in or into or from the
United States, Canada, Australia, the Republic of Ireland or Japan and persons
receiving this press release (including custodians, nominees and trustees) must
not distribute or send it into or from the United States, Canada, Australia, the
Republic of Ireland or Japan.


Collins Stewart Limited which is regulated and authorised by the Financial
Services Authority is acting exclusively for the Company in connection with the
placing and will not be responsible to any other person or persons for providing
the protections afforded to customers of Collins Stewart or for giving advice in
relation to the placing or the contents of this announcement. In acting for the
Company Collins Stewart has relied on information provided to it by both the
Company and the Directors.


This announcement does not constitute an offer or invitation to purchase or
subscribe for securities in any jurisdiction.












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