UK’s top CBD brand Dragonfly Biosciences eyes $30m ASX float
Dragonfly Biosciences, a leading retail distributor of CBD health and lifestyle products in the UK, is planning to launch an Initial Public Offering (IPO) on the Australian Securities Exchange (ASX) with an aim to raise up to $30 million. The company intends to use the funds to expand into emerging Asian markets, following its preliminary entry into the US, Europe, Australia, and New Zealand.
As a founder-led company, Dragonfly Biosciences specializes in developing and retailing premium cannabidiol (CBD) products through its “seed-to-shelf” organic approach. The brand has a strong presence in the UK, where its products are sold by major retailers like Boots, Tesco, and Sainsbury’s. Additionally, Dragonfly offers white label and wholesale services in the UK, European, and Australian markets.
One of Dragonfly’s innovative products is a CBD-infused skin patch, launched in November last year. Unlike orally consumed CBD products, the skin patch provides a discreet and targeted method of CBD delivery. It is particularly useful in treating symptoms of menopause and sleep disorders, as well as enhancing brain health.
Regan Saveall, the CEO of Dragonfly Biosciences, emphasized the demand for innovative CBD products by retailers, and the company’s commitment to developing a range that includes everyday products like sun care and toothpaste.
Apart from its retail operations, Dragonfly Biosciences owns over 100 hectares of organically accredited land in Bulgaria for medicinal cannabis cultivation. It also acquired Premium Extraction Services in 2021, which gives the company control over a state-of-the-art ethanol extraction facility in Romania. This acquisition enables Dragonfly to deliver large-scale quantities of CBD.
Dragonfly Biosciences obtained Special Access Scheme approval for its products from the Therapeutic Goods Administration (TGA) in Australia last year. The company is now committed to obtaining full TGA approval for its entire CBD product range following the IPO. This approval will facilitate its entry into the Australian market and leverage its TGA protocols, recognized by the US Federal Drug Administration, to expand into the US market.
Dragonfly Biosciences is also exploring opportunities in other markets. It has partnered with Italy’s GB Pharma to enter the Israeli market, following legislative approvals. Furthermore, the brand has secured a distribution agreement with Malaysia’s Focus Dynamics for its push into Asia.
The IPO is being overseen by Finexia Securities and RM Capital as joint lead managers. Dragonfly Biosciences aims to raise between $3 million and $5 million through the issuance of a minimum of 15 million shares, up to a maximum of 25 million shares, at 20 cents each. New investors will have the option to acquire one share for every two shares purchased at 35 cents per share, exercisable before December 31, 2024.
If the maximum subscription is achieved, Dragonfly Biosciences will have 152 million shares on issue, valuing the company at $30.4 million. The company’s journey has been closely tracked by Finexia, which holds a small equity interest.
Neil Sheather, the Managing Director of Finexia, believes that an ASX listing will strategically position Dragonfly Biosciences to execute its growth strategy in Asia. He highlights the Australian capital market’s understanding of the medicinal cannabis industry and the company’s strong presence in the UK, which can be leveraged for expansion across Asia as regulatory barriers are reduced.
Dragonfly Biosciences was founded in 2017 by Chris Wronski and Radost Draganova, who continue to serve as executive directors. Draganova chairs the Dragonfly board. The company owns more than 100 hectares of organically accredited land, ensuring quality control over its products. It has the capacity to scale to over 650 hectares, with an additional 300 hectares earmarked for future growth.
The funds raised through the IPO will primarily be used for brand building, marketing, and new product development initiatives. The IPO process started on July 4, and Dragonfly Biosciences plans to debut on the ASX in August.
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