In an unexpected turn of events, Yooma Wellness announced this week that they had relinquished their last source of income. Selling off their final revenue-generating asset, notably Vitality CBD, they warned of impending liquidation should they fail to secure additional sources of liquidity.
- Yooma Wellness is selling off its last revenue generator, Vitality CBD.
- Liquidity shortages could push Yooma Wellness into an insolvency proceeding.
- Vitality CBD has been picked up by Canadian trigger Psilobrain Therapeutics.
- Hellenic Dynamics is nearing completion of its cultivation facility.
- Celadon Pharmaceuticals reports a significant reduction in losses.
Yooma Wellness’ Financial Struggles
Wrapped in a conundrum of securing more liquidity, Yooma Wellness, the struggling CBD wellness entity owning several brands, has alerted its investors to brace for potential uncertainties. The company has announced it may not promptly or completely reverse the cease trade order on its shares.
In an investor-focused move, Yooma disclosed that it had finalized the sale of Vitality CBD, based in Birmingham, to Canadian biotech firm, Psilobrain Therapeutics. Bursting onto the CBD scene with its informed buy-and-build strategy, Yooma initially acquired Vitality for £10.2m in 2021.
The CBD brand later hustled in a ‘gross turnover’ of £1.6m within the six months preceding its acquisition.
Yooma’s transfer of Vitality CBD to Psilobrain for US$2m (£1.65m) showcased Yooma’s growing financial grind. As of December 2022, the company’s financial accounts exhibit a net liability of £1.5m.
As a crucial factor, Yooma’s sale of Vitality denotes that it no longer possesses any significant business operations or revenue-generating assets, after the disposal of various other brands over the preceding year. If challenges to secure additional sources of liquidity persist, Yooma may be forced into liquidation, winding up, or insolvency proceedings.
Celadon Pharmaceuticals’ Progress
In another news byte, Celadon Pharmaceuticals, the AIM-listed medical cannabis company, divulged its half-yearly results until June 30th, showcasing a revenue decrease and a sizeable reduction in losses. Furthermore, it announced commercial supply contracts with leading pharmaceutical firms worth £4.2m over the next three years.
Hellenic Dynamics’ Facility Readiness
Hellenic Dynamics, LSE’s inaugural cannabis cultivator, heralded its first cultivation anticipated for October 2023. This announcement comes after the successful wrap-up of their Greek cultivation facility’s construction and outfitting in a mere nine months.
What BRITISH CANNABIS™ has to say
This round-up of industry shuffles demonstrates the dynamic nature of the cannabis industry, with companies facing financial challenges on one side, and others making strategic advances on the other. It’s apparent that despite the hurdles, the cannabis market continues to evolve, with many seeing optimistic future growth.
While Yooma Wellness battles liquidity challenges, companies like Celadon Pharmaceuticals and Hellenic Dynamics are making strides in their areas, painting a hopeful picture for the cannabis market’s future in Britain and beyond. The cannabis industry’s resilience, adaptability, and forward-thinking ethos are evident. Watch this space for more updates on these exciting developments in the world of cannabis.