Jersey Hemp secures GBP2m in VC funding
Jersey Hemp, which in August became the first licensed operator in the British Isles for the EU-certified cultivation, extraction and production of cannabidiol (CBD) based products, has attracted GBP2 million of venture capital funding.
The funding will be used to establish extraction facilities at Jersey Hemp and provide working capital for the second year of cultivation and CBD production. The investment comes from a group of professional individuals including Bernard Fairman, Chairman and Founder of Foresight Group, who also becomes Non-Executive Chairman of Jersey Hemp.
Since being granted its licence, Jersey Hemp has seen strong demand from wholesale partners, in the UK and internationally, for the distribution of its own-branded product range. The wholesalers have emphasised the appeal of CBD products with clear provenance and the highest standards of quality.
The investment will enable Jersey Hemp to become the first British Isles producer able to compete commercially on a level playing field with producers in China, Eastern Europe and the Americas, where most CBD sold in the UK is manufactured.
David Ryan, CEO of Jersey Hemp, says: “We are delighted to welcome Bernard to the Jersey Hemp team for what promises to be an exciting next stage in our journey. He brings a wealth of experience in environmental impact investment and shares our core values around quality, traceability and provenance. With the help of our new investors we can now focus on delivering what we have set out to achieve – to develop Jersey Hemp as a market leader in its field and as a significant international brand.”
Bernard Fairman, Non-Executive Chairman of Jersey Hemp, says: “With its first mover advantage in a rapidly growing market, the attractions of Jersey Hemp as a business with huge potential and as an attractive investment opportunity are obvious. I am delighted to become Jersey Hemp’s Chairman and look to forward to working with David and the team to progress the company through the next stages of its growth as it scales up to become a leading player in the UK nutraceutical market and a potential European bridgehead for international companies involved in CBD.”
Recent research from the Centre for Medical Cannabis highlighted that the market for CBD products in the UK is growing rapidly. Current estimates are that annual sales of CBD products are worth £300 million and are expected to rise to be just short of GBP1 billion in 2025. A home-grown domestic CBD product, which is grown using organic methods, where the provenance of the CBD oil is reliable and controlled, will be an attractive proposition for suppliers that provide CBD products to high-street retailers including those that already sell CBD products.
Bernard Fairman has been at the forefront of investing in innovative new markets with exciting potential since he founded Foresight Group more than 35 years ago. Foresight now has more than £4 billion under management from institutional and retail investors and is a leading independent infrastructure and small cap private equity investment manager.