Perth-based Voyager Life has confirmed its flotation plans whereas one other Scottish CBD firm, Pure Sport, has mentioned it’s on observe for a 600 per cent enhance in gross sales within the present yr.
The bulletins by the 2 corporations – which promote cannabidiol (CBD) merchandise to handle circumstances resembling anxiousness, insomnia and ache – underline the CBD market’s transfer into the mainstream, with the UK now the second-largest client after the USA. A latest report by the Affiliation for the Cannabinoid Business and the Centre for Medical Hashish estimated the marketplace for extracts will attain £690 million this yr, greater than double that of 2020.
Arrange in November 2020 by chief government Nick Tulloch, Voyager has utilized for admission to the pan-European Aquis Development Market. Shares are anticipated to start buying and selling on June 30, with the corporate elevating as much as £2 million at a valuation of between £5m and £6m.
The money can be used to construct the model and develop the product vary. It is going to additionally give traders in Voyager, which has raised each crowdfunding and personal fairness money, elevated liquidity on their funding.
The itemizing comes as Voyager prepares to open its first retail store, having up to now relied on gross sales by its personal and third-party web sites resembling Amazon and eBay.
The store in St Andrews’ Market Avenue is anticipated to open early subsequent month, with others to observe if the Fife retailer proves efficient. Mr Tulloch mentioned Voyager has additionally opened greater than 20 new buying and selling accounts with impartial retail shops and chains over the past month.
“Mainstream retailers will, rightly, solely cope with totally compliant companies, so the strict governance framework we’ve established as a part of the material of Voyager is a key aspect of our method,” he mentioned.
“We’re reasonable and don’t anticipate in a single day success, however I’m inspired by the tempo of development we’ve achieved within the final six months, each by way of new distribution channels and gross sales, which supplies the board confidence that this is a perfect time for us to be taking Voyager to the inventory market.”
He added that the corporate expects launch “a number of” new merchandise within the coming weeks, with a brand new skincare line to return later this summer season taking the overall product depend to greater than 30.
Earlier this yr, Voyager raised £874,000 from 295 crowdfunding traders by way of Seedrs, and the corporate is working with Seedrs to permit these traders to take part in Voyager’s IPO. Voyager additionally accomplished a £741,000 non-public funding in April.
Pure Sport CBD, arrange in 2018 by Scottish rugby internationals Adam Ashe and Grayson Hart, has mentioned it’s on observe to interrupt the £2m gross sales barrier this yr, a rise of 600% on 2020. Mr Hart attributed this development to customers and companies turning into extra educated about CBD’s advantages, in addition to elevated give attention to well being and psychological wellbeing through the pandemic.
“Every week, we obtain tons of of messages, emails, opinions and feedback saying the way it’s helped individuals fight severe health points and keep away from painkillers, antidepressants and sleeping tablets,” he mentioned.
“However whereas we imagine our merchandise are able to remodeling individuals’s lives, the largest affect we’ve is by constructing a neighborhood primarily based on our values. With our companions and ambassadors, we’re constructing a motion of like-minded individuals who need to enhance their well being and lifestyle.”
Pure Sport has agreed a collaboration with health attire model Gymshark, and has additionally partnered with Health Contemporary Meals in a deal that can see its CBD merchandise provided to the diet service’s subscribers. Swiss efficiency shoe model On Operating has additionally agreed a long-term partnership following the expansion of Pure Sport’s run membership, which now has greater than 1,000 members.
Noel Mack, chief model officer for Gymshark, mentioned he believes Pure Sport might observe his firm in turning into a worldwide model.
“They remind us of Gymshark within the early days,” Mr Mack mentioned. “It’s a very powerful factor for a marketer and a younger model to do, to resolve they’re going to take a position all this locally, as a result of many individuals would ask effectively, what are we going to get again from that?
“However for Pure Sport CBD, the precedence is the neighborhood. Income and return on funding is the second precedence.”
In October of final yr, Pure Sport secured an undisclosed money funding from Alex Stewart, a founding companion of Clyde Blowers Capital, in a deal mentioned to worth the corporate at £2.8m. Amongst its different traders are Scottish rugby star Finn Russell, who can be a model ambassador for Pure Sport.