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European law firm Fieldfisher has advised Tennyson Securities and Novum Securities in their capacities as joint brokers on the initial public offering of David Beckham – backed, Cellular Goods PLC, a UK-based supplier of biosynthetic cannabinoid (CBD) products.
Shares in the company will be admitted to trading on 26 February 2021, on the Standard List of the London Stock Exchange's Main Market.
The past five years have seen surging consumer and investor interest in CBD products, with the global market projected to be worth $73 billion by 2027.
However, to date, UK investors have had limited opportunities to invest in cannabis and CBD companies on the public markets.
Appetite for exposure to this sector was reflected in the demand for Cellular Goods' shares, which were 13 times oversubscribed. The company raised gross proceeds of £13 million, far exceeding its £8 million target.
In September 2020, the FCA outlined its approach to assessing applications from cannabis-related companies seeking to list in London, providing regulatory direction that will underpin a likely rush of CBD and medicinal cannabis businesses coming to market.
International football superstar David Beckham is an initial investor in Cellular Goods, with his company DB Ventures retaining a 5% stake in the business and holding two board positions.
The celebrity has recently leant his support to companies in other fast-growing sectors, having supported the IPO of Guild Esports in October 2020, on which Fieldfisher also advised.
The proceeds from the IPO will be used to finance the future development of Celluar Goods lab-grown cannabinoid products, which has ranges for cosmetics and sports recovery.
Fieldfisher corporate partner Anthony Brockbank, who led the legal team advising Tennyson and Novum said:
"We are delighted to have worked with our Tennyson and Novum on what has been one of the most exciting IPOs in recent times.
The oversubscribed listing of Celluar Goods signifies the breakthrough of CBD businesses on the London Stock Exchange, since the landmark change in regulation from the FCA last year, allowing medical cannabis businesses to list, complementing the loosening of other regulatory bottlenecks for cannabis products to enter the market.
The cannabis industry is an increasingly accessible market that is showing great promise and attracting keen investment from both institutional and retail investors. We expect to see more activity in this space."