"Key moment" for CBD market as South West Brands plots London float

(Alliance News) - Cannabidiol consumer goods firm South West Brands PLC on Wednesday said it ...

Alliance News 30 June, 2021 | 7:17PM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Cannabidiol consumer goods firm South West Brands PLC on Wednesday said it plans to float on London's Main Market, targetting admission in July.

The company, which develops, licences, and markets CBD brands to consumer markets in the UK, hailed the move as a "key moment" in the CBD industry.

"Our listing on the London Stock Exchange will enable South West Brands to access the new pool of cannabis investors that has grown in London following the successful admission of a number of cannabis companies in 2021. The admission will allow the group to advance to the next stages of its growth plans, and build a suite of strong brands that not only utilise CBD, but drive consumer engagement and product sell-through, something which has been missing in the industry thus far," Chief Executive Rebekah Hall said.

South West is in talks with clients of Arden Partners for an equity raise, conditional on Main Market admission.

The company added: "The group will use the proceeds of the fundraise following the admission to continue to develop its existing portfolio of brand IP and pursue its strategy of adding brand IP assets to the portfolio over the course of the first 24 months following admission.

"The company is in an exceptional position to capitalise on the current window of opportunity presented by the recent lifting of restrictions and regulatory progress in the CBD industry in the UK."

South West has spotted "key areas" which have an unmet need in the CBD industry. These include drinks, sport, menopausal care, menstrual cycle car and men's holistic wellness.

The company, which has an all-female leadership team, is targeting admission in July.

By Eric Cunha; ericcunha@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.