Cellular Goods, which IPO’d in London in February, lost £3.3 million in the 12 months to the end of August. The company, which only recently launched its first product, made no revenue. The business raised £13 million from its listing and still has just over £9 million in the bank.
Losses were much higher than the £330,000 recorded in 2019. The jump was driven by IPO costs, investment in business set-up, and a one-off £900,000 charge linked to a share-based bonus scheme for management and staff.
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 major marketing push from February next year.
Chairman Peter Wall said: “In less than a year since listing, the company has achieved its major operational milestones for developing Cellular Goods’ inaugural range.
“Having launched our first range of wellness consumer products, Cellular Goods is now entering a significant chapter of its long-term business strategy.”
Ex-footballer David Beckham is Cellular Goods’ third biggest shareholder, owning just under 5% of the company.
Shares in the company surged over 400% on debut at the start of the year but have since fallen back. Cellular Goods was trading at 8.1p at the close on Thursday and dropped 0.7% at the open on Friday. Shares were offered at 5p in February’s IPO.
Cellular Goods is part of a global cannabis gold rush that has emerged in the last few years thanks to deregulation in the US and growing interest in CBD as a “wellness” product. Cellular Goods said CBD sales in the US alone are forecasts to reach $20 billion by 2024. The compound has been put into everything from soft drinks to skin lotion, with advocates claiming it can do everything from help people relax and sleep and to tackling blemishes and dry skin.