CBD oil producer Dragonfly Biosciences is again talking up its IPO plans

After a failed run at listing on the ASX in late 2021, London-based cannabidiol oil producer Dragonfly Biosciences is telling investors it will be back for another tilt soon.

CBD oil is becoming an increasingly common treatment for various ailments.

A cannabidiol (CBD) oil company which pulled its float early last year over concerns over market volatility and its valuation is again teasing an ASX listing, with Dragonfly Biosciences urging prospective investors to register their interest.

The London-based company has been sending out marketing information highlighting the momentum in the medicinal cannabis industry, including US President Joe Biden signing into law legislation to facilitate research in the sector.

Dragonfly also highlighted a recent investment by the Kennard family which owns the self storage and equipment hire businesses, which has invested in Byron Bay-based Australian Natural Therapeutics Group.

ANTG is headed up by founder Matt Cantello, a former Corporate Travel Management executive, and the company recently bought a licensed cultivation and manufacturing facility near Brisbane airport.

Details of Dragonfly’s new plans to list on the ASX have not been made public yet, and News Corp Australia has as yet been unsuccessful in contacting the company’s executives or representatives from its broker Finexia Securities.

The company’s marketing materials are talking up growth in the medicinal cannabis sector, saying “According to the Global Cannabis Report by Prohibition Partners, it is estimated that global sales of CBD, medical and adult-use cannabis amounted to $US44.2bn this year and could be worth more than $US100.4 billion by 2026.

“Having been worth over $50 million in 2020 and about $200 million this year, Australia’s medicinal cannabis industry is predicted to be worth $1.6 billion by 2026.’’

Dragonfly in late 2021 was seeking to raise $10m and list on the ASX with the help of Surfers Paradise-based corporate advisory firm Finexia, and planned to use the money raised to expand its cannabidiol product range and expand into Asia and the US.

Dragonfly acquired the shell of former minerals explorer Siburan Resources and released a prospectus in September 2021, which was revised after two interim stop orders were issued by the Australian Securities & Investments Commission.

A prospectus issued on November 30 envisaged an ASX listing, valuing the company at $95m, on December 24, 2021, however this did not eventuate.

Potential investors were told the IPO had been deferred “at the request of key parties essential to a successful float’’.

“Dragonfly and Finexia have liaised with various institutional investors who originally expressed a keen interest in the IPO,” investors were told.

“The overwhelming response from these stakeholders is to defer the IPO and review a number of key statistics in the offer, including valuation.

“The current sentiment in global equities markets has further compounded the company’s predicament, forcing the current course of action.’’

In its 2021 prospectus, Dragonfly said it sells CBD products through British chain Boots and at Tesco and Sainsbury’s.

It “believes that it is positioned as the number one brand for CBD production in the UK’’.

Post-listing, the company aimed to launch its range across the Asia-Pacific and the US, ­taking advantage of the “down-scheduling’’ of CBD in Australia, which allows the sale of low-dose products over the counter at pharmacies.

The company’s website lists seven products including CBD oral drops, vitamin D-infused CBD oil and CBD face cream.

CBD, derived from cannabis plants, has gained popularity in markets such as the US in recent years as a treatment for numerous maladies including anxiety, chronic pain and insomnia, with the Harvard Medical School reporting late last year that “there is evidence that CBD works for some conditions, but certainly not all the conditions it is being promoted for these days’’.

The company’s products do not appear to be available for sale in Australia as yet.

While Dragonfly is focused on CBD production, its major shareholders and directors listed in the 2021 prospectus come from a television production background, with Ms Draganova, its executive chair, a celebrity on Bulgarian television.

Ms Draganova was listed in the prospectus as owning 21.25 per cent of the company pre-raising, and was to own an 18.79 per cent share after the $10m capital raise.

In the prospectus she is also credited with having worked as the head of Sofia Municipality’s legal department, responsible for large-scale developments.

Fellow director and TV industry veteran Chris Wronski owned 16.7 per cent pre-raising

Mr Wronski’s biography says he founded England-based television company Chello Zone Holdings which was part of an eventual $1bn sale to AMC Networks, as well as running Sapphire Media which was sold to Larry Flynt Productions.

Chief executive Regan Saveall is described as a chartered accountant with more than 25 years’ experience in the media industry, including stints at NBC Universal, Chello Zone and the BBC.

If Dragonfly does hit the boards soon, it will join just a handful of companies currently aiming to list on the ASX.

The share market operator’s “upcoming listings” page shows just 10 companies currently intend to list in the near future, however two of these have a listing date of “to be advised”

Aerospace-grade metals supplier Dynamic Metals is scheduled to list on Friday, January 6, while rare earths company VHM, High-Tech Metals, Gold Hydrogen, Patagonia Lithium and speed camera technology firm Acusensus are all scheduled for next week.

The most recent new listing, IT firm SOCO Corporation, hit the boards on December 23 after raising $5m at 20c per share, and is currently performing well with the stock changing hands for 30c.

Originally published as CBD oil producer Dragonfly Biosciences is again talking up its IPO plans