Cellular Goods, a UK-based provider of premium consumer products based on biosynthetic cannabinoids, has announced that it has attracted strong demand from institutional and private 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 £13m from a conditional placing and an intermediaries offer which was 13 times oversubscribed.
David Beckham Ventures is one of the investors in the company.
As a result, Cellular Goods will be valued at a market capitalisation of £25m at launch, and it will be the first pure-play biosynthetic cannabinoids consumer products company to list on the LSE.
The Company will have a total of 504,750,000 shares in issue upon its expected admission. Tennyson Securities and Novum Securities are acting as joint bookrunners and brokers to the Company. PrimaryBid is acting as retail adviser.
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.”