Losses have widened at Cellular Goods (CBX.L), the London-listed cannabis business backed by David Beckham.
Cellular Goods on Tuesday said its losses hit £2.1m ($3m) in the six months to the end of February 2021. The business lost just £140,000 in the same period a year earlier.
The company blamed set-up costs and one-off share-based incentive payments for key members of staff. Cellular Goods listed on the stock market during the period and has been gearing up to launch its first consumer products, both of which are capital-intensive processes.
Cellular Goods raised £13m through a London listing in February and the company still had just over £11m in the business as of this week.
"The most significant milestone we achieved in the first half was our heavily oversubscribed flotation on the London Stock Exchange which has provided us with a strong foundation and public profile to become the leading and front of mind brand for consumer cannabinoid products," chief executive Alexis Abraham said.
Cellular Goods is a "wellness" company that plans to make self care products from cannabinoids — natural compounds produced by the cannabis plant. The products will not contain THC, the psychoactive compound found in cannabis that makes people high.
Shares in the company soared on debut earlier this year amid huge demand. The business is backed by former professional footballer David Beckham, who owns a 5% stake through his holding company DB Ventures.
The company is on track to launch its first consumer products in the autumn. It will first launch a range of skincare products before branching into sports recovery products.
"The notable support for an IPO of our size validates the growing acceptance and potentially huge demand for cannabinoid-based products over the long term," Abraham said.
"Though it is still early days for Cellular Goods, we are making excellent progress in executing on our strategy, have a strong balance sheet and there are compelling industry fundamentals; all of this provides the Board with great confidence."
Shares were flat on Tuesday morning.
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