Swiss Life Sciences Group Plc (SLSG) has identified a need in the fast-growing cannabis and CBD industry to establish a financing and credit facility for companies and brands, especially those in the medical and pharmaceutical segment.
The dynamic group, which specialises in production, cultivation, genetics and manufacturing in the CBD pharmaceutical and nutraceuticals space, has chosen Luxembourg as a domicile of choice for the setup of a securitisation vehicle as a highly specialised platform for the CBD industry, to raise funds from the institutional, HNWI and family-office investor space.
The platform allows the issuance of notes to professional investors in the EU and UK financial markets and a wrapper facility [specifically for the French market].
A securitisation vehicle allows companies to raise finance against their assets and businesses in a regulated environment and to create flexible securities, which can then be acquired by investors interested in gaining securitised exposure to in the CBD space.
Jean-Pierre Engele, COO at Savim SA, the group’s origination and production business and former head of Special Situations and Event Driven Investing at Dresdner Kleinworts Bank, explains: “Due to the nature of the cannabis and CBD industry and general misconceptions regarding its legality, even opening a bank account for a genuine legal CBD business can be a challenge, as can credit card processing for cross-border sales, so of course, raising money from the traditional banks is almost impossible. A securitisation vehicle provides added value and is the perfect solution for companies operating in the legal and fast growing medical and wellness sectors, to raise additional finance against their assets, and Luxembourg provides the perfect transparent and advanced regulatory environment.”
Swiss Life Sciences Group has teamed up with professional service providers to provide a simple and ready-to-market platform for companies within the industry to access and raise funds for their own projects and businesses. In addition, a team of professional advisors is on hand to help advise on fundraising strategy.
Swiss Life Sciences Group CEO Jose Mugia: “It’s a clear diversification for a company in the production and manufacturing sector and shows the dynamic and forward-thinking approach we are taking. We hear every day from good companies and partners we work with how hard it is to access funding, so it was a natural expansion of our business for us and part of our own future pre-IPO-expansion financing plan.”