Emerald Clinics Limited (ASX:EMD) listed on the Australian Securities Exchange (ASX) today after raising $6 million in its initial public offering (IPO).
The company issued 30 million new shares at 20 cents per share, giving it a market capitalisation of $36.8 million at listing.
Shares today have traded in the range of 13 cents to 15.5 cents.
To date, Emerald Clinics has established four medical clinics across Australia where it evaluates the safe and appropriate use of cannabinoid treatments - and plans to open more in 2020.
Emerald managing director and chief executive officer Dr Michael Winlo said: “With Emerald Clinics we have a unique and compelling business taking advantage of several emerging trends in digital health, clinical medicine and regulation science, and the funds raised in our IPO will allow us to build upon the early momentum we’ve achieved.”
“Real-world clinical evidence”
While the medicinal cannabis sector is gaining momentum globally, a lack of high-quality, product-specific, clinical evidence is constraining uptake by clinicians, authorisation from regulators and reimbursement by payors.
The company intends to use the funds raised in the IPO to further develop its data platform, establish new clinics across Australia and the UK and conduct clinical trials to gather real-world evidence.
Winslo said: “We believe robust and ethically-sourced clinical evidence is vital for medicinal cannabis to be considered a mainstream medicine and Emerald is well-positioned to be a key supplier of this information covering appropriate prescribing and safe monitoring.”
Emerald Clinics has entered letters of intent to commercialise its anonymised clinical evidence with customers including Spectrum Therapeutics, the medical division of the world’s largest cannabis company, Canopy Growth, as set out in the company's IPO prospectus.
“A wealth of experience”
In conjunction with the listing on the ASX, the company has welcomed Sir Professor John Tooke to the board, who was knighted in the UK in 2007 for services to medicine.
Winlo said: “I’d like to welcome Sir Professor John Tooke to the board of the company, who brings a wealth of experience and will be integral to our plans to expand into the UK.”
Tooke has 30 years’ experience as a clinician scientist and expertise from numerous board seats and university positions with current roles including Independent Director of BUPA Chile and Chairman of Collaboration for the Advancement of Sustainable Medical Innovation (CASMI), University College London.
The company's board and management team has the experience across clinical medicine, clinical trials, data science, digital health, medicinal cannabis to progress its expansion strategy acorss Australia and the UK in 2020.