Cellular Goods was established in 2018 with the aim of developing premium, research-backed, consumer products, based on biosynthetic cannabinoids. These include skincare products, the first to be formulated with CBG (a rare cannabinoid supplied by Willow Biosciences) following positive studies. Additional partnerships have been formed with leading biosynthetic cannabinoid manufacturers in the United States and Canada. The intention is to launch the first two products under the Cellular Goods brand in the UK before the year end. The company’s website will be the initial distribution channel with other sales partnerships planned.
Cellular Goods |
Commercial launch imminent
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Consumer |
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22 October 2021 |
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Cellular Goods was established in 2018 with the aim of developing premium, research-backed, consumer products, based on biosynthetic cannabinoids. These include skincare products, the first to be formulated with CBG (a rare cannabinoid supplied by Willow Biosciences) following positive studies. Additional partnerships have been formed with leading biosynthetic cannabinoid manufacturers in the United States and Canada. The intention is to launch the first two products under the Cellular Goods brand in the UK before the year end. The company’s website will be the initial distribution channel with other sales partnerships planned.
Commercial launch of ingestibles accelerated
In August 2021 the company announced a supply agreement with Chanelle McCoy Health (CMH) a developer of ultra-pure CBD products founded by pharmaceutical industry veterans. CMH products are fully compliant with the novel foods regulations in the UK and EU, certified under Good Manufacturing Practice (GMP) standards. The agreement will enable Cellular Goods to launch the ingestibles range a year ahead of schedule in Q421, which will reduce planned R&D costs and provides access to a range of other CMH novel food compliant products.
Growing acceptance of cannabinoid products
Regulatory changes have stimulated robust growth in the UK and European markets for cannabinoid-based products. Key changes were the November 2020 confirmation from the European Commission that CBD is not considered a narcotic and the World Anti-Doping Agency removing CBD from its list of prohibited substances. The UK now has the world’s most developed regulatory framework for legal cannabinoids according to the Association for the Cannabinoid Industry, with a market worth £690m in 2021, second only to the United States.
Pioneer on the LSE
Cellular Goods raised £13m (initial plan was to raise £8m) in February 2021 through a 13x oversubscribed IPO on the London Stock Exchange (LSE), issuing 51.5% of the company to a mix of retail and institutional investors. In so doing, it became the first provider of consumer products based on biosynthetic cannabinoids to join the LSE. David Beckham has a 5% shareholding via DB Ventures.
Milestones
Key milestones ahead are the product launches of skincare and ingestible ranges in 2021, followed by athletic recovery and other wellness products in 2022, as well as expansion into European markets. Increasing the distribution channels can also be expected via partnerships with online and physical retailers.
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Source: Cellular Goods |
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Research: Industrials
Solid State’s post-close trading update states that it expects to announce strong year-on-year growth in both revenues (18%) and adjusted profit before tax (27%) for its first half to 30 September 2021. While management sees potential for upside during H2, dependent on successful navigation of supply chain challenges, and is confident that the group will meet the FY22 consensus adjusted profit before tax estimate, the consensus estimates remain unchanged at present.