Cellular Goods PLC (LON:CBX), the maker of lab-made cannabinoid products backed by David Beckham, said it is on track to roll out its first consumer product range in Autumn this year followed by a ‘movement’ product range for the after-sport recovery market next Spring.
In an outlook statement accompanying its half-year results, the company said it is looking to the future “with confidence” amid growing public acceptance and scientific validation of the benefits of cannabinoids.
Meanwhile, the company said its post-period activities had included the start of a planned scale-up and investment in its operational infrastructure with five senior hires to strengthen its product development, marketing, and sales functions.
Cellular said proprietary product formulations, supply chain and manufacturing agreements, together with go-to-market sales strategy, are at advanced stages of being developed and finalised, while it has also secured the services of expert advisors from the skincare, sports medicine, and veterinary sectors.
The firm reported net cash at the end of February of £1.4mln, which increased to £11.3mln by May 25 due to proceeds from the company’s initial public offering (IPO), where David Beckham's DB Ventures was secured as a significant equity investor with a 5% shareholding.
Pre-tax losses had widened to £2.12mln from £0.14mln in 2020 reflecting business set-up costs and a one-off non-cash charge for share-based incentives for the team.
Investment has also been made in developing prototype products to the advanced stages of formulation development and product testing, with the initial skin care range including a serum, a face-oil and an after-shaving moisturiser. Formulations for each of these products are due to be finalised this week, the company said.
"The most significant milestone we achieved in the first half was our heavily oversubscribed flotation on the London Stock Exchange which has provided us with a strong foundation and public profile to become the leading and front of mind brand for consumer cannabinoid products,” Cellular Goods chief executive Alexis Abraham said in a statement.
"The notable support for an IPO of our size validates the growing acceptance and potentially huge demand for cannabinoid-based products over the long term. Though it is still early days for Cellular Goods, we are making excellent progress in executing on our strategy, have a strong balance sheet and there are compelling industry fundamentals; all of this provides the Board with great confidence," the CEO added.