Equinox eyes London IPO for British homegrown medical cannabis

A homegrown business: Medical cannabis agency Equinox set for a London IPO with an eye fixed on ending Britain’s reliance on imports

  • UK at present imports 100% of its medical cannabis, which was legalised in 2018
  • Homegrown cannabis can be much less ‘expensive, complex and time-consuming’
  • UK medical cannabis market to have addressable market of £7.5bn by 2028 

Medical cannabis business Equinox International is planning to checklist on the London Stock Exchange to boost money for a ‘state-of-the-art’ cultivation, extraction and manufacturing facility on a Home Office-approved 20-acre UK website.

Self-described ‘British cannabis champion’ Equinox, which is the UK’s first ‘land-to-brand’, vertically built-in medical cannabis company, will supply retail buyers the prospect to entry the IPO through website PrimaryBid.

The UK at present imports 100 per cent of its medical cannabis, which was legalised in 2018, and Equinox says a homegrown answer would make its procurement much less ‘expensive, complex and time-consuming’, whereas bettering high quality, oversight and progress potential.

Co-founder and CEO of Equinox Xan Morgan said: ‘The UK medical cannabis market is forecast to be one of the largest in Europe and Equinox has a significant first-mover advantage to build a British champion and transform patients’ lives.’

Equinox has one of the first commercially-scaled medical cannabis cultivation and production licences issued by the Home Office, and post-IPO it hopes to build a pipeline of revenues via NHS medical sales and strategic supply partnerships.

It told investors on Thursday that its IPO would allow it to capitalise on ‘first first-mover advantage’, whereas enabling entry to progress capital to develop amenities, and for analysis and growth.

The IPO would additionally give the agency ‘enhanced profile and visibility in the UK and across international cannabis markets’.

Equinox has not but confirmed a fundraising goal for its IPO, however This is Money understands the agency is at present meeting with potential buyers and can replace the market with data on valuation and funds raised as soon as the e-book is constructed.

While there’s at present no fundraise goal, £10million of the fundraising qualifies for EIS and VCT associated tax aid.

The cannabis business is predicted to be price $57billion by 2027, in response to information from Arcview Market Research and BDS Analytics.

Most nations nonetheless ban the availability of cannabis for leisure use however many have legalised the plant lately for medical use.

The psychoactive chemical in cannabis that makes individuals excessive – THC – continues to be banned within the UK, however one other chemical – CBD – was legalised for medical use in 2018.

The Centre for Medicinal Cannabis claims the UK CBD market is at present price £300million and will hit £1billion by 2025, as extra analysis on its well being advantages is revealed.

But Equinox itself is bolder in its predictions, eyeing an addressable market of £7.5billion by 2028 with the ‘potential to become one of the largest [medical cannabis markets] in the world’. 

Cannabis firm Kanabo's share price has struggled since it listed earlier this year

Cannabis agency Kanabo’s share worth has struggled because it listed earlier this year

The David Beckham-backed Cellular Goods also slumped but has since has fared much better

The David Beckham-backed Cellular Goods additionally slumped however has since has fared significantly better 

Rise of fledgling psychedelic companies

British mental healthcare company Compass Pathways uses psilocybin, the psychedelic compound that naturally occurs in magic mushrooms

British psychological healthcare company Compass Pathways makes use of psilocybin, the psychedelic compound that naturally happens in magic mushrooms

Promising advances to deal with melancholy are additionally placing start-ups attempting to create authorized psychedelic drugs within the highlight. 

But corporations concerned on this area are finishing up assessments utilizing psychedelics which might be unlawful for personal use and in a area the place the success or failure of a trial could make a colossal distinction.

 We check out the rising psychedelic therapy companies right here.

> Is there funding magic in mushrooms? Backing psychedelics

The agency would turn into one among a number of marijuana corporations which have listed within the UK since 2018, together with developer of medical therapy merchandise Kanabo and David Beckham-backed Cellular Goods.

Such shares are typically excessive threat for buyers and akin to investing in fledgling biotechs.

Co-founder and CEO of Equinox Xan Morgan stated: ‘The UK medical cannabis market is forecast to be one of many largest in Europe and Equinox has a big first-mover benefit to build a British champion and rework sufferers’ lives.

‘Our wholesale distribution technique and land-to-brand focus will allow us to turn into a number one, vertically built-in medical cannabis company offering constant, high-quality merchandise.

‘With our management workforce’s expertise in project supply, operational administration, strategic governance and business growth, we’re effectively positioned to maximise this thrilling alternative.

‘Through proprietary cultivation, the creation of IP-protected formulations focusing on NHS medical gross sales and strategic provide partnerships, we’ve the potential to focus on a big share of the projected £7.5billibn market within the UK by 2028.’


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