Cannabis firm backed by David Beckham suffers huge losses of over £6million
David Beckham invested in cannabinoid firm Cellular Goods in February 2021 and, like his fellow shareholders, he will be concerned by the company's recent financial performance.
A cannabinoid firm backed by David Beckham has posted losses of almost £6million.
Cellular Goods attributed the financial difficulties to the intense rise in costs during their recent increased commercial operations. The former Manchester United and Real Madrid star owns around 5% of equity with the company.
His investment reportedly helped raise around £13million for the company at the time of purchase. However, the company is still experiencing intense difficulties, as demonstrated in their recent financial postings
Shares in the company’s early tradition tumbled after they posted a £5.99m pre-tax loss for the year to August 31. This is an increase from the previous year’s losses of £3.33m.
The company also stated they have invested more time and funds into their marketing, brand growth, and commercial operations, while also having to deal with increased costs. They also admitted product sales have been “slower than expected” which were attributed to difficult “industry and regulatory conditions”.
After the launching of new products, such as the release of their ingestible products, and added production were pushed back, the company only managed to deliver revenues of around £28,904 for the year.
“Despite achieving major operational milestones during the year, significant investment in new products and a broad-scale marketing campaign that meaningfully boosted our brand awareness, it did not translate to our revenue growth expectations due to a challenging market and regulatory environment that is affecting the growth of both the industry and the company,” chairman Darcy Taylor said.
“In response, we have halved our annual cost base and continue to look for further cost optimisation as we invest in the business to position it for a significant turnaround when trading conditions normalise.
“We are also in negotiations for an acquisition to provide greater scale in a highly fragmented market, accelerate growth and generate long-term value for shareholders.”
