Jersey Hemp, one of the first British Isles company to receive a licence to produce CBD, is seeking to raise £6m from existing and new investors to help fund expansion.
The latest fundraising comes after an initial £2m seed-funding round in 2019, a year after the establishment of Jersey Hemp. The funds were used to develop the company’s infrastructure, including its laboratory, processing, logistics and distribution.
The money raised this time will be used to accelerate the development and commercialisation of the company. Of the total to be raised, £5m will be through a private placement, while £1m is expected through retail crowd-funding platform Seedrs.
Growing CBD demand
Jersey Hemp’s expansion plans come at a time of rapidly growing demand for CBD products globally. The market in the UK alone is expected to more than triple from £300m to £1bn over the next four years.
Jersey’s climate and soil, plus government backing for the hemp industry, provide an attractive environment for Jersey Hemp’s expansion. Currently operating from a 17-acre farm, it has access to a further 1,000 hectares of third-party agricultural land in Jersey.
Products produced by Jersey Hemp are sold and distributed through distribution companies such as Amazon and Selfridges. As Covid restrictions ease in the UK, the company is poised to reactivate its retail sales drive.
Jersey Hemp has also formed a joint venture with a UK listed international CBD group to develop UK/EU approved cultivars that produce higher yielding hemp seeds.
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.