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David Beckham-backed cannabis firm raises £13 million ahead of LSE listing



MGC Pharma became the first company to list on the LSE two weeks ago

A UK-based cannabis company, which names David Beckham among its investors, has raised £13 million ahead of its listing on the London Stock Exchange.

Cellular Goods, which provides consumer products based on biosynthetic cannabinoids has attracted strong demand from investors for its initial public offering (IPO) to join the main market of the London Stock Exchange (LSE).

The company has raised gross proceeds of £13 million from a conditional placing and an intermediaries offer which was 13 times oversubscribed.

Cellular Goods will be valued at a market capitalisation of £25 million at launch, and it will be the first pure-play biosynthetic cannabinoids consumer products company to list on the LSE.

More than 6,000 valid applications were received under the retail offer, resulting in a significant oversubscription.

The firm has now scaled down allocations to accommodate as many small investors as possible in a fair manner.

Earlier this month Cellular Goods hit the headlines after it was reported that DB Ventures, former England footballer, David Beckham’s investment firm had bought a stake in the company.

Net proceeds from the IPO will be used to fund the development of Cellular Goods’ cannabinoids-based business and to enable it to finalise the development of, and launch, its initial product range for cosmetics and sports recovery.

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.”

The company’s shares are expected to commence trading on the LSE from 8am on Friday 26 February 2021, subject to the approval of its application for admission.

Sarah Sinclair is a respected cannabis journalist writing on subjects related to science, medicine, research, health and wellness. She is managing editor of Cannabis Health, the UK’s leading title covering medical cannabis and CBD, and sister titles, Cannabis Wealth and Psychedelic Health. Sarah has an NCTJ journalism qualification and an MA in Journalism from the University of Sunderland. Sarah has over six years experience working on newspapers, magazines and digital-first titles, the last two of which have been in the cannabis sector. She has also completed training through the Medical Cannabis Clinicians Society securing a certificate in Medical Cannabis Explained. She is a member of PLEA’s (Patient-Led Engagement for Access) advisory board, has hosted several webinars on cannabis and women's health and has moderated at industry events such as Cannabis Europa. Sarah Sinclair is the editor of Cannabis Health. Got a story? Email / Follow us on Twitter: @CannabisHNews / Instagram: @cannabishealthmag


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