A Local Company: Medical cannabis company Equinox plans to go public in London to end Britain’s reliance on imports
- The UK currently imports 100% of its medical cannabis, which was legalized in 2018
- Home grown cannabis would be less “expensive, complex and time consuming”
- The UK medical cannabis market is projected to have an addressable market of 7.5 billion by 2028
Medical cannabis company Equinox International plans to go public on the London Stock Exchange to raise cash for a “state-of-the-art” cultivation, extraction and manufacturing facility on Home Office-approved 20 acres UK property.
Self-proclaimed British cannabis champion Equinox, the UK’s first vertically integrated land-to-brand medical cannabis company, is offering private investors access to the IPO through the PrimaryBid website.
The UK currently imports 100 percent of its medical cannabis, which was legalized in 2018, and Equinox says a homemade solution would make its procurement less “expensive, complex and time-consuming” while improving quality, oversight and growth potential.
Xan Morgan, Equinox Co-Founder and CEO, said: “The UK medical cannabis market is set to be one of the largest in Europe and Equinox has a significant first mover advantage to build a UK champion and transform patients’ lives. “
Equinox has one of the earliest commercial licenses for the cultivation and production of medicinal cannabis issued by the Home Office and hopes to build a revenue pipeline through the NHS medical distribution and strategic supply partnerships after the IPO.
The company announced Thursday that its IPO would allow it to take advantage of the “first mover advantage” while also providing access to growth capital for facility development and research and development.
The IPO would also give the company “an improved profile and visibility in the UK and international cannabis markets”.
Equinox has not yet confirmed a fundraising target for its IPO, but This is Money anticipates the company is currently meeting with potential investors and will update the market with information on the valuation and the funds raised once the book is created.
While there is currently no target for donations, £ 10m of the fundraising will qualify for EIS and VCT-related tax breaks.
According to data from Arcview Market Research and BDS Analytics, the cannabis industry is projected to be worth $ 57 billion by 2027.
Most countries still ban the supply of recreational cannabis, but many have legalized the plant for medicinal purposes in recent years.
The psychoactive chemical in cannabis that gets people high – THC – is still banned in the UK, but another chemical – CBD – was legalized for medical use in 2018.
The Center for Medical Cannabis claims the UK’s CBD market is currently valued at £ 300 million and could reach £ 1 billion by 2025 if more research is uncovered on its health benefits.
However, Equinox itself is bolder in its predictions, seeing an addressable market of £ 7.5 billion by 2028 with “the potential to become one of the largest”. [medical cannabis markets] in the world’.
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The company would become one of several marijuana companies listed in the UK since 2018, including medical treatment product developer Kanabo and David Beckham-backed Cellular Goods.
Such stocks usually carry a high level of risk for investors and are similar to investments in young biotech companies.
Xan Morgan, Equinox Co-Founder and CEO, said: ‘The UK medical cannabis market is set to be one of the largest in Europe and Equinox has a significant first mover advantage to build a UK champion and transform patients’ lives.
‘Our wholesale distribution strategy and land-to-brand focus will enable us to become a leading vertically integrated medical cannabis company offering consistent, high quality products.
‘With our leadership team’s experience in project delivery, operational management, strategic governance and business development, we are well positioned to maximize this exciting opportunity.
“Through proprietary cultivation, development of IP-protected formulations for the NHS medical distribution and strategic supply partnerships, we have the potential to reach a significant portion of the UK’s projected £ 7.5 billion market by 2028.”