Cellular Goods PLC (LON: CBX) share price fell 8.31% after launching its first product portfolio and its e-commerce website in a classic buy the rumour sell the news scenario.
Investors have been waiting to launch its inaugural products since its IPO on the London Stock Exchange in late February.
Finally, Cellular Goods has unveiled its first batch of products dubbed the UK’s first premium CBG (cannabigerol) skincare products, which is not exactly what you would expect of a cannabis company.
The first products include cannabinoid face oil, face serum, oral drops, oral spray and after shaving moisturiser. As you can see, all of the products launched today target the skincare market, a bold move on the company’s part.’
Now, the products aren’t cheap at all, given that they start at around £44, and the most expensive product, the face serum, retails for £89.
Therefore, it is clear that Cellular Goods is positioning its products in the premium segment of the market, which is entirely appropriate given that these are skincare products made from cannabinoids.
Looking at today’s decline, we can see that it is not a significant decline since its shares have been trading sideways for the past couple of days, and they are still within this range.
It appears that investors are recalibrating their expectations of the company since it now has a range of products that it must market to generate sales that shall become revenues. Today marks Cellular Goods transition into a revenue-generating company.
Alexis Abraham, Cellular Goods CEO, commented: “Today is a major milestone for the company with the launch of the UK’s first CBG skincare products on a best-in-class eCommerce platform. Leading with CBG sets us apart from the competition, and to also be able to offer consumers CBD ingestibles at the same time delivers on our vision to become the first true cannabinoid company.
Adding:
“We have taken less than a year from a standing start to put Cellular Goods at the forefront of the cannabinoid and wellness industries, and as of today, we have started a new chapter in our growth by entering a revenue-generating phase.”
*This is not investment advice. Always do your due diligence before making investment decisions.
Cellular Goods share price.
Cellular Goods share price fell 8.31% to trade at 9.60p, falling from Tuesday’s closing price of 10.47p.
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