4th Feb 2021 10:57
(Alliance News) - Cannabinoids products firm Cellular Goods PLC on Thursday outlined plans for a London Main Market float, becoming the second company in the cannabis sector to announce a London IPO this week and continuing a flurry of new listings at the start of 2021.
Cellular Goods said it will be the first LSE-listed 'pure-play' consumer cannabinoid brands company. Its CBD products are focused on skincare and athletic recovery.
The company, which said it is eyeing a listing in Spring, plans to raise GBP8 million in its initial public offering.
Cellular said: "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 float will value the company at GBP20 million, Cellular added.
"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 USD20 billion by 2024, according to BDS Analytics and Arcview Market Research," the company said.
"In 2019, the UK's Centre for Medicinal Cannabis found that 1.3 million British consumers were using CBD-based products and estimated that the market could be worth almost GBP1 billion a year by 2025. The same research estimated that those 1.3 million British consumers were spending over GBP300 million annually on CBD products."
Tennyson Securities, Novum Securities and PrimaryBid are acting as joint bookrunners and corporate brokers.
Cellular Goods Non-Executive Chair Peter Wall serves as chief executive of London-listed cryptocurrency miner Argo Blockchain PLC.
David Gardner, a Cellular Goods non-executive director, also serves as managing director of DB Ventures Ltd. DB Ventures oversees the commercial businesses of retired English football player David Beckham.
Sky News earlier on Thursday reported that DB Ventures has a minor stake in Cellular Goods.
Cellular Goods CEO Alexis Abraham 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."
Cellular Goods' IPO plan follows a number of new listing activity in London early in the 2021. These have been headlined by large-size floats by bootmaker Dr Martens PLC and card seller Moonpig Group PLC, but also have included MGC Pharmaceuticals Ltd, a fellow cannabis sector company.
MGC on Monday said it is in the final stages of a London listing, also on the Main Market, seeking to raise GBP5 million as part of the process. MGC is listed in Australia and is a Europe-based biopharmaceutical company specialising in the production and development of phytocannabinoid-derived medicines.
By Eric Cunha; [email protected]
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