David Beckham Backed CBD Company Cellular Goods Goes Public on The London Stock Exchange
A cannabis product developer by the name of Cellular Goods has today listed on the London Stock Exchange (LSE). The share price is currently up 470% from the company’s IPO price.
Cellular Goods follows MGC Pharmaceuticals and Kanabo Research in listing on the London Stock Exchange. With valuations throughout the global capital markets at extortionate levels, now seems to be as good a time as any for companies to conduct their IPO. Investor’s interest in cannabis seems to be growing rapidly and there is a substantial appetite for cannabis stocks at the moment. The Cellular Goods IPO was 13 times oversubscribed which led to their being high demand on the morning of the company’s IPO.
How did the first day on the London Stock Exchange go for Cellular Goods?
The Cellular Goods share price rocketed up 470% from an initial listing price of 5p to a high of 28.5p in early morning trading. By the mid-morning the share price had settled at around 25p. Which still equates to a daily rise of almost 400%.
Cellular Goods has a famous shareholder in the shape of David Beckham. Through his investment vehicle DB Ventures, he holds a 5% stake in Cellular Goods.
Today has obviously been an extremely successful day for a company that has yet to bring any products to market and has yet to reveal any kind of proprietary IP. However, they now have an extremely solid foundation upon which to build and will inevitably be a serious player in the UK CBD market over the coming years.
What does the future hold for Cellular Goods?
The Cellular Goods plan seems to be to launch a range of CBD products that are focused on sports recovery, cosmetics and most probably CBD oils. Cellular Goods are marketing themselves as a ‘wellness’ company that intends to provide their customers with CBD skin care products as well as mood enhancing products.
Cellular Goods are said to be a cannabis company with a focus on cannabinoid technology. However, their products will not contain any THC, which is the psychoactive element of the cannabis plant. It is THC that causes users of cannabis to experience the notorious high, typically associated with smoking a joint. The products will utilise CBD and likely CBG to formulate their products. The CBD industry in the UK has experienced dramatic growth over the last couple of years and many predict that this growth is a trend that is going to continue. CBD is now available in almost every variation of supplement and skincare product.
What does this mean for the CBD industry?
With the cannabis sector becoming of greater interest to investors, it is inevitable that more CBD brands with celebrity backing will be launched. It seems that this is a cornerstone that new brands are being built on. The jury is still out on whether Cellular Goods has the scientific personnel in place to match their world-renowned shareholders.
This is yet another positive sign that the stigma which for so long inhibited the cannabis industry is gradually lifting. IPOs and companies that are attached to famous celebrities such as David Beckham will lead to both CBD and cannabis being discussed in a different light in mainstream culture. This can only be a positive thing for the cannabis industry as it draws attention away from the negative connotations of cannabis, instead highlighting the abundant benefits of perfecting cannabinoid science to create products that can help people on a daily basis.