Cellular Goods Plc intends to list on LSE

The US market for CBD sales is expected to exceed $20 billion by 2024, according to BDS Analytics and Arcview Market Research.

LONDON: Cellular Goods PLC, a UK-based provider of premium consumer products based on biosynthetic cannabinoids, announced its intention to join the main market of the London Stock Exchange this spring.

Cullular Goods is backed by David Beckham.

The flotation is expected to value Cellular Goods at approximately £20m and will make it the first LSE-listed “pure-play” consumer cannabinoid brands company and the first to use biosynthetic cannabinoids.

The Company will apply for a standard listing and raise approximately £8m through an initial public offering for its ordinary shares that will include a retail offer.

Tennyson Securities, Novum Securities and PrimaryBid are acting as Joint Bookrunners and Corporate Brokers for the Company.

Net proceeds from the IPO will be deployed to finalise the development and launch of a range of the Company’s premium-quality consumer products based on biosynthetic cannabinoids, which is fully compliant under UK law.

The market for CBD-based products is expected to grow rapidly as cannabinoids gain wider consumer acceptance, the regulatory environment undergoes gradual change, and a rapidly growing number of scientific papers validate their potential benefits.

The US market for CBD sales is expected to exceed $20 billion by 2024, according to BDS Analytics and Arcview Market Research.

In 2019, the UK’s Centre for Medicinal Cannabis (CMC) found that 1.3 million British consumers were using CBD-based products and estimated that the market could be worth almost £1bn a year by 2025.

The same research estimated that those 1.3 million British consumers were spending over £300m annually on CBD products.

Alexis Abraham, chief executive of Cellular Goods, said: “We are delighted to be the very first pure-play consumer cannabinoid company to list on the LSE. The past few years have seen massive growth and awareness of the importance of wellness and self-care and we believe cannabinoids will prove to be the king of wellness ingredients.

A London stock market listing will provide us with the profile, credibility and access to global capital to drive our growth. There is a burgeoning market for high quality cannabinoid products but the industry is currently highly fragmented and there is no go-to name that consumers can trust across product categories.”

Company Highlights:

Cellular Goods was established in August 2018 to develop efficacy-led and research-backed cannabinoid products. The initial focus is on two product verticals: premium skincare and topical athletic recovery products. These will be made available through partnerships with leading online and physical retailers and direct to consumers through the Company’s website.

The Company has partnered with four leading biosynthetic cannabinoid producers in the US who have experience and expertise in the manufacture of these compounds through a fermentation-based process to secure a consistent supply of legally compliant raw materials.

The production of biosynthetic cannabinoids does not involve the cultivation or processing of the cannabis sativa plant.

www.cellulargoods.co

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