PRESS RELEASE
- New capital raise to fund operations through to becoming cash flow positive
- Supply chain consolidation and below-the-line efficiencies to realise over £4m annualised savings
- Top-down restructuring and significant right-sizing to various teams across the business
- Re-focusing on core UK market as well as strategic Australian market
LYPHE Group Ltd (“Lyphe” or the “Company”), the UK’s largest medical cannabis company, today announces a new capital raise and the completion of an internal restructure.
The capital raise is led by existing investors whose funding will support the Company to becoming cash flow positive in late 2023. The financing took place concurrently with the consolidation of its supply chain and operating cost base, resulting in over £4m annualised savings this year.
The Company has appointed a new board of directors comprising Rob Reid (founder who rejoined two months ago to lead the restructure), George Scorsis (founding investor in Lyphe and chairman of one of Canada’s leading medical cannabis specialists), Simon Lawley (investor representative), Nikolay Tretiyakov (investor representative) and James Scarth (Chief Financial Officer).
The board would like to thank outgoing co-founder and CEO Jonathan Nadler and fellow directors Brian Fisher, Brad Morris and Chris Ashton for their service.
Lyphe’s new management team will draw on its diversity of expertise to strengthen its position as the UK market leader. It comprises Sophie Gamwell (Operations & Supply Chain), Dr Luisa Searle (Medical & Clinical), Andrew Tyler (Marketing & Digital Product) and Helen Gale (Governance & Regulatory). A new CEO has been identified and will be announced over the coming weeks.
In addition, the Company is pleased to welcome back Prof. Mike Barnes, Chairman of the Medical Advisory Board, and Hannah Deacon, who will form a new working group between Lyphe and the various patient associations in the UK. They will also both advise and report directly to the board of directors.
Lyphe Group will continue to operate in Australia, where the board recognises the potential for significant bottom-line contribution. However, the Company will exit other non-core markets, including Israel. It has also decided not to pursue its previously announced LOI to acquire Materia.
Rob Reid said: “We have undergone an extensive restructuring with the support of our existing investors. We continue to maintain a 30% market share in the UK, have entered the high-growth Australian market and now look forward with new leadership, a robust and reliable supply chain, and a genuine patient-first approach. The next chapter of our growth is set to bring many exciting and accretive opportunities.”
