GCILab-produced cannabis firm Cellular Goods raises £13m in IPO
(CBX ) said it has attracted strong demand from institutional and private investors after the Group raised £13 million as part of its IPO that it says was 13 times oversubscribed.
A total of 260 million ordinary shares, representing 51.5% of Cellular Good’s issued capital on admission, will be issued at the IPO offer price of 5p a share. As a result, the Company will be valued at £25 million at the time of its launch this Friday.
Cellular, whose cannabinoids products are made in a lab rather than the marijuana plant, will be the first pure-play biosynthetic cannabinoids consumer products firm to list on the LSE.
It is the latest firm in the cannabis space to float on the main market following a recent ruling by regulator the Financial Conduct Authority to allow such businesses to list on the LSE.
The UK-based provider of premium consumer products based on biosynthetic cannabinoids, which was originally looking to raise £8m, said it had received that more than 6,000 valid applications were received under the retail offer, resulting in a significant oversubscription.
As a result, the Company said it has scaled down allocations ‘to accommodate as many small investors as possible in a fair manner.’ Accordingly, any retail subscription up to £500, has been allocated in full while any subscription greater than £500 has been given an allocation of 2.85% of the additional amount above £500, up to a maximum total allocation of £2,500.
The proceeds from the IPO will be used to fund the development of the Company’s cannabinoids-based business and to enable it to finalise the development of, and launch, its initial product range for cosmetics and sports recovery.
Chief Executive of Cellular Goods, Alexis Abraham, commented, "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.”
He highlighted to investors that, “technology now means that 'listening at scale' is not just a possibility but a requirement for successful consumer brands.” He added that. “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."
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