A Jersey-based medical cannabis company has announced it will begin a huge growing operation and go public after a bumper funding round.
Northern Leaf Limited has raised £14m in a funding drive ahead of a planned listing on the London Stock Exchange later this year.
It has already obtained a permission from the Jersey Government – which has licensing authority granted to it by the UK Home Office – to grow and sell medical cannabis in December 2020.
It makes Northern Leaf the first company to receive a UK licence to grow high THC medical cannabis since GW Pharma in 1998.
The company plans to sell its product in to the UK and other key markets such as Israel and Germany.
Campbell Dunlop, CEO of Northern Leaf, said: “We have spent the last two years investing in our Jersey facilities, growing hemp, liaising with regulators and customers to focus our strategy to become a European leading cannabis company in cultivation, extraction and production for medical markets.
“We are now fully funded to start the next phase of our growth and we will start planting in the coming months.”
Northern Leaf currently operates from a 75,000 square foot facility in Jersey where the favourable climate and sunshine hours contribute to a comparably lower cultivation cost.
Initially, the company expects to harvest a 6,500kg of THC flower a year and also has an additional 196,000 sq ft for future expansion.
After a trio of LSE listings in February following the Financial Conduct Authority opening the door to cannabis firms in September 2020, Northern Leaf is set to be one of the next to do so.
Katie Shelton-Innes, director of corporate affairs for Northern Leaf, said: “Now that we have completed this fundraise, we are fully committed to commencing our IPO on the London Stock Exchange, which we expect to happen later this year.
“We have appointed advisers and are actively putting together an experienced board and senior management team to complement and strengthen our existing team. We will update the market in due course.”
The fundraising drive was led by Chrystal Capital Partners’ Cannabis Advisory (CCCA) team, with investment taking the form of convertible loan notes.
Tristan Gervais, head of (CCCA), said: “We are delighted to have advised Northern Leaf, a company that Chrystal have invested in and supported since its inception in 2019, on this highly successful, heavily oversubscribed £14m raise.
“Our unique cannabis sector expertise, together with our extensive relationships with cannabis investors, continues to deliver much needed growth capital to this exciting, fast growing medicinal industry.
“Having now completed this second private capital raise for Northern Leaf, taking the total raised to £17m, CCCA will continue to work closely with the management team on a number of strategic initiatives in Europe to add material value ahead of the planned IPO on the London Stock Exchange.”
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