Wednesday, May 29, 2024

Beckham-backed Cellular Goods announces interim results

Cellular Goods, the UK-based provider of CBD products, says it has raised £13 million before expenses through a “significantly oversubscribed” flotation.

The first provider of premium consumer products based on lab-made cannabinoids to join the London Stock Exchange, Cellular Goods secured David Beckham’s DB Ventures as an equity investor with a 5% shareholding. At the time, hype around the Cellular Goods shares listed at 5p saw them shoot up to approximately 20p. They have now fallen to just over 6p.

Its loss before tax increased to £2.12m (H1 2020: £0.14m) reflecting business set-up costs and a one-off non-cash charge for share-based incentives for the team in the form of warrants. Its net cash (as at 28 February) came to £1.433m (H1 2020: £40,000). Net cash as at 25 May 2021 was £11.28m inclusive of IPO proceeds.

The company has used the cash to hire five new staff to strengthen product development, marketing, and sales functions. It says it is on track for roll-out of the first consumer product range in autumn 2021, starting with the launch of three skincare products followed by a ‘movement’ product range for the after-sport recovery market in spring 2022.

Alexis Abraham, chief executive of Cellular Goods, points to, “potentially huge demand for cannabinoid-based products over the long term.”

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