Medical cannabis producer sets sights on £6m investment
Leicestershire medical cannabis producer Dalgety has revealed plans to grow after announcing a new round of investment.
The news comes 18 months since the company was granted a Home Office licence to grow medical cannabis and around a year since it began cultivation.
Now a team of 15, with six growers, Dalgety has its sights set on reaching its next major milestone with the support of a £6m investment.
James Leavesley, chief executive at Dalgety, said: “The past 18 months has been incredibly exciting for Dalgety, from the progress we’ve made as a business to the momentum taking place across the UK medical cannabis industry.”
“Patient demand continues to rise, and more discussions are taking place in government around accessibility, highlighting the need for increased action. We are committed to delivering the highest quality products in the UK, through our expert team and supportive external partners.”
The £6m raised will be used to increase the number of cultivation rooms in the existing facility, enhance operations and deliver five times the annual volume of product and subsequent revenue. There is space within the existing licensed area to expand the facility by 40 times, so Dalgety says it can continue to meet the rising market demand throughout Europe in the coming years.
The founding shareholders have provided land and funding for the initial construction of the indoor facility to meet the requirements of the Home Office and MHRA licence.
The facility was custom designed to grow medical cannabis under highly controlled conditions, using energy efficient lighting and hydroponic systems.
Leavesley added: “Once this round of investment is secured, Dalgety will look to drive forward with construction of the expanded facility throughout 2024.
“The increased revenue from the expanded facility is expected to be generated 12 months after construction begins. Over the next three years, we expect to see year on year growth as we scale up operations, achieve new licensing milestones, diversify our products, and commence more research and development.
“One of our key focuses is to develop a completely UK-based supply chain, putting the UK at the forefront of this rapidly expanding market.”
Dalgety says demand in the UK for medical cannabis continues to rise, with cannabis imports increasing more than 300% between 2022 and 2023 – from around 7,700kg to 23,800 kgs. There is a predicted patient growth of 350% over the next two years, echoed by the reports of around five million patients on prescription opioids and 1.8 million medical cannabis users sourcing from the illicit market.
Leavesley said: “We have completed around 12 harvests since our cultivation began in April 2023, including three trials. While it is hard to say for certain – due to the lack of transparency in the UK medical cannabis industry – we estimate our last seven consecutive harvests have been in the top 1% for medical cannabis yield worldwide.
In October 2023, a supplier contract was signed with one of the UK’s largest distributors of prescribed cannabis medicines. Grow Pharma is now providing Dalgety with access to their medical cannabis distribution network throughout Europe.
Leavesley added: “We are keen to speak to anyone who is looking for a unique and interesting investment opportunity to join us on this journey to becoming a market leader and improving the lives of patients who currently lack access to medical cannabis. This is a fast-moving industry that has already grown substantially, and we would need someone who is confident and comfortable in those conditions. If you are interested in setting up a call, we would be happy to go through more of our plans and the potential for growth.”
