Cannabis products developer Cellular Goods blazes higher on first day’s dealings
The provider of premium consumer products based on biosynthetic cannabinoids, which are compounds produced in the lab from cannabis plants, completed its initial public offering (IPO) after a £13mln fundraising.
Cellular Goods, which as the first company of its type to trade in London saw its IPO 13 times oversubscribed, which has rolled into high demand in the first morning of trading.
The shares shot up 470% from its 5p placing price to a high of 28.5p in early morning trading, and by mid-morning was settling around 23p, still a rise of 360%.
One of those shareholders that will cheer this early performance is David Beckham, whose DB Ventures has a 5% stake in the company.
Alexis Abraham, the company’s founder and chief executive, said: “Cellular Goods’ debut on the London Stock Exchange is a major step in the company’s development and provides a strong foundation to execute our long-term growth strategy.
“We are delighted with the strong support from a wide range of institutional and retail investors to build premium consumer products based on biosynthetic cannabinoids under the Cellular Goods brand.”
Abraham and his team plan to use the net proceeds from the IPO to further develop and launch the company’s initial CBD product range for cosmetics and sports recovery, as well as funding ongoing business development.