LOVE Hemp Group informed its investors this week that its upcoming admission to the London Stock Exchange’s (LSE) is “imminent”.
Currently Love Hemp is listed on the Aquis Stock Exchange Growth Market, one of two arms of the Aquis Stock Exchange (AQSE) designed to help smaller businesses gain access to investor funding.
Love Hemp, which is also traded on the US OCTQB market, is now reportedly months away from securing a Standard Listing on the much larger LSE, which its chairman Andrew Male described as a “real uplift from our current exchange”.
During an investor call held earlier the week, Mr Male said: “I think the expectation from a timing perspective is it’s imminent. We’ve already commenced the process of doing the submission of the prospectus. We’re well underway with that process.”
Company Valued At £21m
“The Financial Conduct Authority (FCA) at this point in time is reviewing our documentation, asking questions, we’re responding, and we’re through the first first round and into the second round.”
While Mr Male said it would be “unrealistic” for the company to give a specific target timeframe, he added that the process usually takes “between two and three months”.
Standard Listings on the LSE’s main market are becoming an increasingly popular alternative for growth companies who would usually target more junior markets like AIM.
Currently Love Hemp has a market capitalisation of around £21m. The fast growing CBD brand announced in April this year that it planned to use the proceeds of an oversubscribed £5m fundraise to help it complete a move onto the LSE this year.
Mr Male also suggested that the company would use the listing to raise further funds, but did not provide investors with any dates or figures regarding to fundraise.
“As a growth company we’re setting ourselves up to specifically grow into various different markets. Those markets and that trajectory always needs a level of capital to access,” he said.
“The company has to always consider when it has an opportunity to do financing and or financing is offered.”
If successful it will become the fifth cannabis company to list on the LSE this year