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Kanabo Announces £2.74m In New Funding, Cellular Goods Stock Skyrockets Over 100%, & Creso Pharma Cleared To Acquire Health House

Cellular Goods


After publishing lacklustre financial figures last week, the cannabis cosmetics retailer has seen its share price catapult by nearly 180%, seeing its market capitalisation almost triple.

On Wednesday, May 10, Cellular Goods announced that it has now signed a contract with luxury multinational cosmetics retailer Sephora which will see its full CBG skincare range sold through the retailer’s UK website.

The news sent Cellular Goods’ stock jumping from 0.6p at market close on Tuesday to 1.75p mid-morning, before dropping back to around 1.4p at the time of writing.

Following months of stagnation and gradual decline for the company’s share price since a similar spike in March this year, but more broadly since August 2022, the recovery to levels not seen since last November will be a relief for investors.

Investors are hoping that the exposure might help provide some momentum for the brand, which has struggled to achieve any substantial sales since launching its products in December 2021.

Despite being sold in Debenhams and on Amazon’s UK marketplace, as well as on its own ecommerce website, Cellular Goods reported revenues of just £31k in the six months to February 2023 last week.

It has repeatedly cited a lack of ability to advertise its products online as a major barrier to sales growth, and its Interim CEO Darcy Taylor hopes this will help ‘bridge the gap’.

“The launch bridges the gap between customer awareness and sales by making it easier for customers to purchase our products,” she said.

“We’re confident that our effective next-generation skincare formulations will appeal to their existing customers and encourage them to try our CBG-powered products. The Sephora launch is part of our continued customer acquisition strategy as we continue to increase awareness of our products and grow our sales channels.”

The announcement also came just a day after Cellular Goods completed the acquisition of carbon sequestration-as-a-service company King Tide Carbon.

The acquisition will be satisfied by the issue of 95m shares at £0.0001 each in Cellular Goods, with King Tide Carbon’s sole shareholder, Matthew Lodge, securing a place on the wider group’s board.

Cellular Goods told investors in an RNS that the ‘diversification of its portfolio is aimed at generating long-term shareholder value while still realising latent growth in the cannabinoid sector.

“The acquisition of King Tide, with its deep industry expertise, is a perfect fit for this strategic direction, and together, the companies are committed to seizing the opportunities that lie ahead.”



Kanabo has also published a number of major market updates over the past week, though these have so far failed to move the dial on its share price.

The medical cannabis company announced yesterday that it had raised a total of £2.74m through a combined fundraise and broker option.

On May 09, Kanabo announced the successful completion of a £2.54m fundraise via the issue of 88.1m new ordinary shares, which reportedly included a ‘new institutional investor’.

This was followed a day later by an announcement that a subsequent broker option had been fully taken up, seeing the company raise an additional £200k at the issue price of 2.88p per share through the issue of 6.9m new shares.

Kanabo’s CEO Avihu Tamir said: “We are delighted to be announcing this fresh capital injection, which further endorses the strength and quality of our business and highlights the confidence we have in our growth strategy. This raise will not only accelerate the roll-out of our online platform but will also enable our team to pursue a number of exciting commercial opportunities.”

On the same day as the announcement of its fundraise, Kanabo informed investors that financial services, wealth management and property veteran Ian Mattioli would be joining as a new Non-Executive Chair, seeing David Tsur transition to Deputy Chair.

It also came just a week after Kanabo published its full-year results for 2022, revealing a revenue increase of 726% to £603k.

The company said this growth was largely thanks to the acquisition of The GP Service in February 2022, which ‘immediately boosted earnings’ despite post-merger integration not being completed until early this year.

Despite its immediate benefits, Kanabo also cited the acquisition as a key factor in its £6.8m operating loss for the period, which grew from £4.5m a year earlier.

As of December 31, 2022, Kanabo reported cash and equivalents of £3.2m, down from £4.4m a year earlier; though following its recent fundraise, its cash position will be significantly stronger.

Mr Tamir added: “As we head into 2023, we have a more diverse business proposition. The combined expertise and offering presents a unified platform that uniquely combines a digital healthcare platform and treatment portfolio, connecting patients with accessible, affordable and personalised healthcare.

“The Board remains confident in both short-term and medium-term growth prospects for the Company and remains committed to developing a scaled business capable of fully exploiting a number of near-term growth opportunities.”

Creso Pharma, Health House 


Australian cannabis and psychedelics company Creso Pharma has now received approval from the Supreme Court of Western Australia to acquire 100% of Health House International.

The acquisition is a significant development for Creso, potentially enabling the multi-brand operator to import and distribute psychedelic compounds including psilocybin and MDMA into Australia.

It will also provide the company with another revenue-generating business, with Health House posting cash receipts of A$5.95m in the three months to March 31.

This is expected to see the newly combined entity’s consolidated cash receipts for the quarter hit A$8.26m, or A$33m on an annualised basis.

Creso’s CEO William Lay told Stockhead: “The group has an enviable set of licences which we can use to our immediate benefit, and adds another growing revenue channel to the group.”

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