The Australian Financial Review
Dragonfly Biosciences, the UK-based maker of cannabidiol-based supplements and lotions, is locked-and-loaded for an initial public offering and ASX listing next month.
Dragofly, which is led by Regan Saveall, intends to raise up to $5 million at 20¢ a share, valuing the business at between $37 million and $40 million. Financing is jointly led by Finexia Securities and RM Corporate Finance.
Dragonfly Biosciences first took a run at the ASX in late-2021 but pulled the float soon after, citing market volatility and regulatory uncertainty in the UK.
The focus on the Australian market came after the Therapeutic Goods Administration down-scheduled low-dose CBD from a prescription medicine to a pharmacist-only medicine. Dragonfly has Special Access Scheme approval from the TGA for two of its products that are within the regulator’s dosage specification.
Dragonfly uses cannabidiol or CBD, a cannabinoid that is extracted from the cannabis or hemp plant, but avoids the psychoactive cannabinoid known as THC that is the staple of recreational and some medicinal cannabis.
As an oral supplement, Dragonfly claims CBD is of particular use against insomnia, anxiety and stress, and potentially chronic pain. The lotions are intended for general skin care, repair, protection and moisturising.
The local listing is driven by Australia’s growing health and wellness segment and as a “beachhead” into the Asian market, where the company has received significant investment.
According to its prospectus, Dragonfly declared a total loss of $732,000 in the six months to the end of June 2021 for its UK business, and a total loss of $1.2 million in the six months to December 31 in Australia.
ASX comparables include Cann Group, which has a market capitalisation of $55.8 million. Cann has built a large indoor grow facility while Dragonfly grows its product outdoors in Bulgaria. Little Green Pharma is another – a biotech and cannabis company based out of Western Australia.
