Cellular Goods PLC aiming to be the LSE’s first pure-play CBD business with

A company producing synthetic cannabinoids products that is understood to be backed by David Beckham’s DB Ventures has announced float plans.

PLC is raising £8mln through a share offering that would value it at £20mln.

Proceeds from the IPO will be used to develop and launch a new range of premium consumer products, prospective investors were told.

Cellular said it is aiming to be the London Stock Exchange’s first pure-play consumer CBD brands business.

“A London stock market listing will provide us with the profile, credibility and access to global capital to drive our growth,” chief executive Alexis Abraham explained in a statement.

“There is a burgeoning market for high-quality cannabinoid products but the industry is currently highly fragmented and there is no go-to name that consumers can trust across product categories.”

The company will be chaired by Peter Wall, co-founder of Argo Blockchain, while David Gardener has been appointed an independent director. He heads DB Ventures, which oversees former footballer David Beckham’s commercial interests.

Joining them as a non-executive director will be DB’s commercial director, Ross Connolly, who has worked with clients such as Neymar, Harry Kane, Philippe Coutinho and Nico Rosberg.

Cannabinoid, also known as CBD, is the non-psychoactive extract from cannabis that has a wide range of uses including relief from anxiety, depression and PTSD.

Traditionally farmed from hemp, Cellular’s lab-based approach provides an alternative to the expensive and time-consuming intensive agriculture currently required.

In the US, the world’s most developed market for CBD, annual revenues from oils and food additives are expected to be around US$20bn by 2024, according to market research.

Cellular expects to take a standard listing on the LSE this Spring with Tennyson Securities, Novum Securities and acting as joint bookrunners and corporate brokers for the IPO.