Cannabis extracts go mainstream as Scottish firms ride the wave

The announcements by the two firms – which sell cannabidiol (CBD) products to manage conditions such as anxiety, insomnia and pain – underline the CBD market’s move into the mainstream, with the UK now the second-largest consumer after the United States. A recent report by the Association for the Cannabinoid Industry and the Centre for Medical Cannabis estimated the market for extracts will reach £690 million this year, more than double that of 2020.

Set up in November 2020 by chief executive Nick Tulloch, Voyager has applied for admission to the pan-European Aquis Growth Market. Shares are expected to begin trading on June 30, with the company raising up to £2 million at a valuation of between £5m and £6m.

The cash will be used to build the brand and develop the product range. It will also give investors in Voyager, which has raised both crowdfunding and private equity cash, increased liquidity on their investment.

The listing comes as Voyager prepares to open its first retail shop, having to date relied on sales through its own and third-party websites such as Amazon and eBay.

Voyager Life founder Nick Tulloch

The shop in St Andrews’ Market Street is expected to open early next month, with others to follow if the Fife store proves effective. Mr Tulloch said Voyager has also opened more than 20 new trading accounts with independent retail stores and chains during the last month.

“Mainstream retailers will, rightly, only deal with fully compliant businesses, so the strict governance framework we have established as part of the fabric of Voyager is a key element of our approach,” he said.

“We are realistic and do not expect overnight success, but I am encouraged by the pace of growth we have achieved in the last six months, both in terms of new distribution channels and sales, which gives the board confidence that this is an ideal time for us to be taking Voyager to the stock market.”

He added that the company expects launch “several” new products in the coming weeks, with a new skincare line to come later this summer taking the total product count to more than 30.

Earlier this year, Voyager raised £874,000 from 295 crowdfunding investors via Seedrs, and the company is working with Seedrs to allow those investors to participate in Voyager’s IPO. Voyager also completed a £741,000 private funding in April.

READ MORE: Voyage into retail shops for Scottish CBD firm

Pure Sport CBD, set up in 2018 by Scottish rugby internationals Adam Ashe and Grayson Hart, has said it is on track to break the £2m sales barrier this year, an increase of 600% on 2020. Mr Hart attributed this growth to consumers and companies becoming more educated about CBD’s benefits, as well as increased focus on health and mental wellbeing during the pandemic.

“Each week, we receive hundreds of messages, emails, reviews and comments saying how it’s helped people combat serious health issues and steer clear of painkillers, antidepressants and sleeping pills,” he said.

“But while we believe our products are capable of transforming people’s lives, the biggest impact we have is by building a community based on our values. With our partners and ambassadors, we are building a movement of like-minded people who are looking to improve their health and lifestyle.”

Pure Sport has agreed a collaboration with fitness apparel brand Gymshark, and has also partnered with Fitness Fresh Food in a deal that will see its CBD products supplied to the nutrition service’s subscribers. Swiss performance shoe brand On Running has also agreed a long-term partnership following the growth of Pure Sport’s run club, which now has more than 1,000 members.

READ MORE: LA move by Adam Ashe to drive US expansion of Pure Sport CBD

Noel Mack, chief brand officer for Gymshark, said he believes Pure Sport could follow his company in becoming a global brand.

“They remind us of Gymshark in the early days,” Mr Mack said. “It’s a really tough thing for a marketer and a young brand to do, to decide they’re going to invest all this in the community, because many people would ask well, what are we going to get back from that?

“But for Pure Sport CBD, the priority is the community. Revenue and return on investment is the second priority.”

In October of last year, Pure Sport secured an undisclosed cash investment from Alex Stewart, a founding partner of Clyde Blowers Capital, in a deal said to value the company at £2.8m. Among its other investors are Scottish rugby star Finn Russell, who is also a brand ambassador for Pure Sport.