(Bloomberg) -- Cellular Goods Plc, a provider of cannabis-based consumer products backed by retired soccer star David Beckham, started taking investor orders in an initial public offering on the London Stock Exchange.
Shares in the U.K.-based company's offering are marketed at 5 pence apiece, according to a pathfinder prospectus published Monday. The IPO is expected to raise 8 million pounds ($11 million), with Cellular Goods looking to use proceeds to develop and launch products.
Set up in August 2018, the company focuses on skin care and topical athletic recovery products, which will be made available through retailers and on its own website. Its cannabinoids are made in a lab, rather than being derived from marijuana plants.
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“There is now a global demand for high quality, sustainable, and compliant consumer cannabinoids,” Chief Executive Officer Alexis Abraham said in written comments, adding that the company's intention to float had “generated significant interest from private investors.”
The share sale, which includes an offering to retail investors, is expected to value Cellular Goods at about 20 million pounds. Beckham is among the company's stockholders and has two representatives on its board of directors.
The listing comes after the U.K. market watchdog said last year cannabis firms can float on the London Stock Exchange, but only if they produce the drug for medicinal purposes. Medical pot was legalized in the U.K. in 2018, but recreational use is against the law.
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