The company raised £13 million in a hot London IPO in February
Allular Goods, a David Beckham-backed cannabis skincare products company, has seen its losses over the past year as it invested in setting up production and going public.
Cellular Goods, which was IPOed in London in February, lost £3.3 million in the 12 months to the end of August. The company, which recently launched its first product, did not generate any revenue. The business raised £13 million from its listing and still has over £9 million in the bank.
The loss was much higher than the £330,000 recorded in 2019. The jump was driven by the cost of the IPO, investments in the business set-up and a £900,000 one-time fee associated with a share-based bonus scheme for management and employees.
Cellular Goods makes ‘wellness’ products that use cannabis-derived chemicals such as CBD and CBG. It launched its first products this week. The range includes CBD after shave, face oil and oral spray. The company is planning a big marketing push from February next year.
President Peter Wall said: “In less than a year since listing, the company has achieved its major operational milestone by developing an inaugural range of cellular goods.
“After launching our first line of wellness consumer products, Cellular Goods is now entering an important chapter in its long-term business strategy.”
Former footballer David Beckham is the third largest shareholder of Cellular Goods, holding only 5% of the company.
The company’s shares rose more than 400% for the first time at the start of the year, but have since fallen back. Cellular Goods was trading at 8.1p at Thursday’s close and dropped 0.7% at Friday’s open. The shares were introduced at 5 pm in the February IPO.
Cellular Goods is part of a global cannabis gold rush that has emerged over the past few years due to deregulation in the US and a growing interest in CBD as a “wellness” product. Cellular Goods said that sales of CBD in the US alone are projected to reach $20 billion by 2024. The compound has been put into everything from soft drinks to skin lotions, with advocates claiming it can do everything from helping people relax and sleep and deal with blemishes. Dry skin