GROW is raising a new round of capital to fund its expansion through private equity firm Growthdeck.
The company has stated it aims to use the capital to ramp up its UK operations as well as scaling up its activities in the German cannabis market.
Growthdeck offers tax-efficient investment opportunities in UK growth businesses to Sophisticated and High Net Worth Investors, with a minimum investment of £5,000.
Its investment in GROW qualifies for tax reliefs under the Enterprise Investment Scheme (EIS). EIS is an investment scheme which allows private investors to make tax savings by investing in growth businesses.
CEO of Growthdeck, Ian Zant-Boer, commented: “This is a wonderful opportunity for Growthdeck investors to back Britain’s leading business in an extremely fast-growth sector.
“The medical cannabis market in the UK is becoming more mainstream on almost a daily basis. The medical community is increasingly recognising the value of a product that can treat conditions like chronic pain without the use of potentially-harmful opioids.
“There are businesses in the medical cannabis market that have listed at valuations of 40x revenue. That is the sort of path that we believe GROW could follow.”
Grow, which was founded by Ben Langley, a former JPMorgan banker, regarded as the UK’s first professional cannabis investor, and Ian Atkinson, a geneticist and botanist with a PhD in Plant Molecular Biology and Biochemistry, has stated that its revenue increased five-fold in 2021 and is continuing to grow in 2022 to meet demand for cannabis medicines.
The company currently provides products through 80 clinicians in the UK, with 3,000 patients being prescribed its products on a monthly basis as of March 2022, which it has said it aims to increase to more than 50,000 by 2026.
Products imported and distributed exclusively in the UK by GROW include those from Nasdaq-listed brands, such as Tilray, the $2bn market cap cannabis pharmaceuticals business.