Equinox considers IPO in London for UK homegrown medicinal cannabis
Homegrown company: Medicinal cannabis company Equinox goes public in London with a view to ending UK reliance on imports
- UK currently imports 100% of its medical cannabis, which was legalized in 2018
- Homegrown cannabis would be less ‘expensive, complex and time-consuming’
- UK medical cannabis market a £7.5bn addressable market by 2028
Medicinal cannabis company Equinox International plans to list on the London Stock Exchange to raise money for a state-of-the-art cultivation, extraction and production facility on a 20-acre UK Home Office-approved site.
Self-described ‘British cannabis champion’ Equinox, the UK’s first ‘land-to-brand’ vertically integrated medicinal cannabis company, is offering retail investors the chance to access the IPO through its PrimaryBid site.
The UK currently imports 100 per cent of its medicinal cannabis, which was legalized in 2018, and Equinox says a homegrown solution would make sourcing less ‘expensive, complex and time-consuming’, while improving quality, oversight and growth potential .
Equinox co-founder and CEO Xan Morgan said: “The UK medical cannabis market is expected to be one of the largest in Europe and Equinox has a significant first-mover advantage to build a UK champion and live the life of patients.’
Equinox holds one of the first commercial licenses to grow and produce medicinal cannabis issued by the Home Office, and after the IPO, it hopes to build a pipeline of revenue through NHS medical sales and strategic supply partnerships.
It told investors Thursday that its IPO would allow it to take advantage of “first first-mover advantage” while gaining access to growth capital to develop facilities and for research and development.
The IPO would also give the company ‘improved profile and visibility in the UK and in the international cannabis markets’.
Equinox has not yet confirmed a fundraising target for its IPO, but This is Money understands that the company is currently meeting potential investors and will update the market with information on valuation and funds raised once the book is built.
While there is currently no fundraising target, £10 million of the fundraising will qualify for EIS and VCT related tax credits.
According to data from Arcview Market Research and BDS Analytics, the cannabis industry is predicted to be worth $57 billion by 2027.
Most countries still prohibit the supply of cannabis for recreational use, but many have legalized the plant for medical use 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 Medicinal Cannabis claims the UK CBD market is currently worth £300m and could reach £1bn by 2025 as more research into its health benefits is revealed.
But Equinox itself is bolder in its predictions, looking at a £7.5bn addressable market by 2028 with the ‘potential to become one of the largest’ [medical cannabis markets] in the world’.
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Equinox co-founder and CEO Xan Morgan said: “The UK medical cannabis market is expected to be one of the largest in Europe and Equinox has a significant first-mover advantage to build a UK champion and live the life transforming patients.
“Our wholesale distribution strategy and focus on land-to-brand will enable us to become a leading, vertically integrated medical cannabis company delivering consistent, high-quality products.
“With our leadership team’s experience in project delivery, operations management, strategic governance and business development, we are well positioned to maximize this great opportunity.
“Through home-grown, creating IP-protected formulations targeting NHS medical sales and strategic supply partnerships, we have the potential to reach a significant portion of the expected £7.5bn market in the UK by 2028.”