FAST-GROWING UK CBD business Love Hemp has unveiled plans to list on the London Stock Exchange backed by an over-subscribed £5m fundraise.
Founded by schoolboy friends Tony Calamita and Tom Rowland in 2015 it was bought for £9m by North American firm World High Life in 2019.
It is currently listed on the UK Aquis Exchange and in a market statement today it outlined its plans to move on to the LSE.
Andrew Male, Chairman and Director of Love Hemp, said: “Love Hemp’s oversubscribed fundraise is a testament to the brand’s reputation as a leading supplier of CBD and hemp products across the UK and the continued interest from investors.
“As part of this strategy, we have announced the company’s intention to move to the Official List of the LSE. Having access to the Main Market will greatly benefit our shareholders by building the brand’s public profile and improving liquidity and access to the capital markets.”
Love Hemp has grown rapidly with listings in over 1,000 stores including main retailers; Sainsbury’s, Ocado, Holland & Barrett, WH Smith and Boots.
It posted sales UK sales of £2.6m in 2019 with that set to more than double in 2020. Its new South London facility will allow the business to increase production five-fold to over 43,000 units of CBD oils, capsules, and cosmetics per day.
Love Hemp says it expects to add an additional 25 to 30 staff on top of the 40 it already employs in 2021 and recently signed an exclusive five-year partnership with Ultimate Fighting Championship (UFC).
Tony Calamita, CEO of Love Hemp, said: “We are delighted to have secured £5m of funding to support Love Hemp as we implement our marketing strategy to become a global leader in the CBD industry.
“We remain focused on driving Love Hemp’s growth and building the brand’s presence across North America, Europe and beyond through strategic partnerships such as the recently announced, exclusive deal with the UFC.”
The £5m fundraise was completed through the issue of 143,571,429 Ordinary Shares at an issue price of 3.5p each. The Issue Price represents a 25% discount to the closing mid-market price on April 6, 2021
The company was advised on the fundraise by H&P Advisory Limited and Peterhouse Capital Limited.
When listing on the LSE it will be fourth cannabis company to do so this year following Cellular Goods, MGC Pharmaceuticals and the Kanabo Group – and many more are expected to follow.