Supply agreement signed with Chanelle McCoy Health
The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014, as retained as part of the law of England and Wales. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
Press release
16 August 2021
Cellular Goods PLC
("Cellular Goods" or "the Company")
Multiyear supply agreement signed for launch of ingestible products
Cellular Goods (LSE: CBX), a UK-based provider of premium consumer products formulated with lab-made cannabinoids, is pleased to announce a multi-year manufacture and supply agreement with Chanelle McCoy Health Ltd (CMH) bringing forward its launch of a range of clinically-validated ingestible products to Q4 2021.
Under the agreement, CMH, a research-led developer of high quality ultra pure cannabinoid (CBD) products that are fully compliant with the new novel food regime, will initially supply three CBD ingestibles which will go on sale under the Cellular Goods brand in the UK, followed by continental Europe in 2022.
The deal marks a significant step in Cellular Goods' go-to-market strategy and will accelerate its entry into the market for ingestible wellness products for human consumption by more than a year.
These products will be introduced in mid-December at the same time as the Company's inaugural skincare range incorporating cannabigerol (CBG), and ahead of the new season product launches typically made in the wellness sector during the first quarter of a new year. The Company will initially sell the ingestible range exclusively through its new ecommerce website, which is in the latter stages of build and deployment.
A third line-up of "movement" products for both the athletic and everyday muscle recovery market is due to be launched in Spring 2022.
Key benefits of the deal include:
· Immediate entry into the most developed market segment with early revenue generation opportunity.
· Expands Cellular Goods' branded product range into a complementary market segment.
· Provides access to a range of novel-food regulation compliant products which are ready for launch.
· Reduced upfront R&D expenditure for market entry in ingestibles.
· Opportunity for future product development and research collaborations through access to compliant ultra pure CBD and pharmaceutical expertise.
At launch the ingestible range will comprise a tincture, spray, and capsules covering the most popular modes of consumption. These have already passed extensive quality, safety and stability tests, comply with novel foods regulations in the UK and EU and are certified under Good Manufacturing Practice (GMP) standards. They contain lab-made CBD obtained through a GMP-certified process whereby naturally derived raw materials are converted to non-psychoactive ultra pure CBD that is bioidentical to plant-derived CBD but devoid of the many contaminants commonly found in plant-extracts, including pollutants, toxins, terpenes, heavy metals, pesticides, and psychoactive substances.
· According to the Association for the Cannabinoid Industry (ACI) the UK has the world's most developed regulatory framework for legal cannabinoids and this market is estimated to be worth £690 million in 2021, making it the second largest in the world after the US.
· The market for ingestible CBD products has seen strong growth following the European Commission's ruling that CBD is not considered a narcotic under the United Nations Single Convention on Narcotic Drugs of 1961.
· Similarly, the World Anti Doping Agency has removed CBD from its list of prohibited substances, enabling use by professional and amateur athletes. The World Health Organization has also stated that CBD is "generally well-tolerated with a good safety profile".
Alexis Abraham, Cellular Goods' Chief Executive Officer, said: "Chanelle McCoy Health was founded by pharmaceutical industry veterans who share our vision that consumers have a right to expect products which are safe, pure, clean and green; something lab-made cannabinoids alone can guarantee. Through this partnership we will be introducing consumers to novel food compliant CBD ingestibles that will complement our CBG skincare range. As a result we will launch this year with both CBD and CBG and two best in class product ranges; one of which is substantially earlier than we expected."
Lady McCoy, Chief Executive and Co-Founder of Chanelle McCoy Health, added: "We are very excited to announce this commercial supply agreement of our ultra pure CBD. Consumers are searching for safe, certified, and reputable CBD products that are backed by clinical studies. This partnership will provide them choice and access to quality-assured CBD products containing 0% THC, an illegal narcotic, and free from toxins and pollutants. Cellular Goods and Chanelle McCoy Health are aligned in our pursuit to help break the stigma of CBD, educate and set the benchmark for the CBD industry."
For further information please contact:
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Cellular Goods |
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Alexis Abraham Chief Executive Neil Thapar Investor Relations |
+44 207 031 6871
+44 787 645 5323 |
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Tennyson Securities |
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Corporate Broker Peter Krens |
+44 207 186 9030 |
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Novum Securities |
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Corporate Broker Colin Rowbury Jon Belliss |
+44 207 399 9427 |
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Tancredi Intelligent Communication |
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Media Relations Helen Humphrey Edward Daly Salamander Davoudi cellulargoods@tancredigroup.com |
+44 744 922 6720 +44 786 143 0057 +44 795 754 9906 |
About Cellular Goods PLC
Cellular Goods is a U.K.-based provider of premium consumer products based on lab-made cannabinoids. It was established in August 2018 to develop efficacy-led and research-backed cannabinoid products. The initial focus is on three product verticals: premium CBG skincare, and CBD ingestibles and topical athletic recovery, with the first products to be launched from this autumn. These will be made available through partnerships with leading online and physical retailers and direct to consumers through the Company's website.
About Chanelle McCoy Health
Chanelle, Lady McCoy and partner Caroline Glynn worked together for over a decade in Chanelle Pharma, now Ireland's largest indigenous pharma company, where they developed the medical business, achieving 2,500+ product licences and penetrating 96 global markets. They founded Chanelle McCoy Health, driven by their strong belief in CBD's healing properties and desire to bring a high-quality product to the market supported by clinical trials. Chanelle, Lady McCoy was awarded the All-Ireland Business Champion Award 2018 for her outstanding achievements in business leadership. She was a Dragon investor on the popular TV series Dragons' Den, and recently ranked "no. 23 in the 50 incredible people shaping modern Ireland".
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