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Frontier Botanics is not a start-up. It is a licensed, GACP-certified medicinal cannabis cultivation and processing platform with over £1 million already deployed and active production underway on a 10-hectare site in Lesotho, Southern Africa.
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The business is operational. Infrastructure is in place. The team is on the ground. This raise is about scaling a functioning asset at precisely the moment European demand for pharmaceutical-grade cannabis is growing faster than licensed supply can meet it.
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The management team responsible for building the C$28.8M Canopy Growth / Spectrum Therapeutics facility in Lesotho now leads Frontier Botanics. That is not a background detail. It is the reason this platform is already producing while others are still in development.
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Why This. Why Now.
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The European medical cannabis market is growing at 27.9% CAGR and is projected to exceed $1.2bn by 2030.
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Germany alone imported over 200,000kg of medicinal cannabis in 2025. Physician demand is accelerating and domestic EU supply cannot keep pace.
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Production costs run at 10-20% of equivalent European operations - a structural cost advantage that protects margin regardless of market pricing pressure.
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70% of output targets premium rosin extract: a high-value product commanding £15-£40 per gram wholesale, with 70-85% gross margins.
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GACP certification is already secured - the pharmaceutical-grade standard required for European medical market access, and the barrier that eliminates most competitors before they start.
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Instrument
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24-month convertible loan note
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Annual Coupon
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12% per annum, paid quarterly
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Min. Investment
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£20,000
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Conversion Price
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5p per share — 37.5% discount to the current 8p reference price
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Investor Stake
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CLN investors hold 17.3% of share capital at maturity
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Total Raise
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£700,000 (£1M+ deployed to date)
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What Your Capital Does
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Every pound raised goes directly into infrastructure. The £700,000 from this round funds the build-out of six additional greenhouse tunnels, taking the platform from one operational tunnel to a full seven-tunnel facility over a phased 12-month programme.
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Tunnel 1:
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Operational now. GACP-certified. Producing.
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Tunnels 2-7:
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Funded by this raise. Build-out phased over 12 months.
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Full build-out target:
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£6.5M annual revenue and approximately £5.1M profit before tax per year at steady state.
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Production focus:
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70% rosin extract for European export markets, 30% dried flower.
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Projected Returns
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At full seven-tunnel capacity, applying a conservative 6x earnings multiple to projected profits implies a share price of approximately 38p - against a conversion price of 5p. Investors also receive a fixed 12% annual coupon throughout the 24-month term, paid quarterly, regardless of conversion outcome.
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Fixed return during the term: 12% per annum, paid quarterly
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Projected annual PBT at full scale: ~£5.1M
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Implied valuation at 6x earnings: ~£30.6M
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Implied share price vs conversion price: ~38p vs 5p
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