A £25m CBD company backed by footballer David Beckham’s investment firm is to list on the London Stock Exchange later this week.
Cellular Goods says it has attracted strong demand from institutional and private investors for its initial public offering to join the main market – scheduled for February 26.
The London-based company says it has raised over £13m with its IPO being 13 times oversubscribed.
Net proceeds from the IPO will be used to fund the development of Cellular Goods’ biosynthetic cannabinoid cosmetics and sports recovery products, it says.
‘Skin’ & ‘Movement’
Today’s announcement was accompanied by the launch of its website which shows a range of cosmetic synthetics CBD branded as ‘Skin’ products and a sports range branded under the ‘Movement’ tag
In a press release Alexis Abraham, Chief Executive Officer, said: “We are delighted with the tremendous support we have received from institutional capital and the unprecedented level of interest shown by retail investors for an IPO of this size.
“We want to involve as many private investors as possible so that they can both be part of and benefit from our growth as we become the trusted brand in consumer cannabinoids.
“Technology now means that ‘listening at scale’ is not just a possibility but a requirement for successful consumer brands. We firmly believe that the future of the cannabinoid industry will be driven by biosynthetic production and our significantly oversubscribed IPO is a sign of investor confidence in this future.”
Third Cannabis LSE Listing In Weeks
Cellular has issued over 504 million shares supported by Tennyson Securities and Novum Securities as joint book-runners and brokers, with PrimaryBid acting as retail adviser.
More than 6,000 valid applications were received under the retail offer, resulting in a significant oversubscription. Cellular says all retail investors investing up to £500 have been allocated in full.
The company’s shares are expected to commence trading under the ticker symbol CBX from 8am this Friday, February 26, subject to the approval of its application for admission to the standard listing segment of the LSE.
Cellular Goods will be valued at a market capitalisation of £25m at launch. Its press release confirmed that David Beckham Ventures is an investor in the company.
Cellular’s debut will make it the third cannabis company to launch on the LSE this month after the Financial Conduct Authority announced it was changing its listing rules last year.
New Leaf Opportunities was launched last year and aims to turn the UK into a world leader in medical cannabis and CBD.
It is being spearheaded by advocacy group Volteface. Its Director Paul North welcomed developments saying: “We feel that the opportunity is ripe for London to take control of the cannabis sector by making ourselves an attractive jurisdiction for regulated cannabis companies to operate in.
“With investment comes added finance for research and development, better patient and consumer experience – and ultimately lower costs for those in need of medicine.
“NLO partner’s Kanabo listing has been warmly received and we wish the team at Cellular Goods the best of luck with the listing.”