The House of Green seeks cash for cannabis cultivation

The House of Green Ltd plans to raise between £1.5m and £2m via a private offer to help it become the largest commercial cannabis grower in Guernsey.

The fundraising by the Guernsey-based company is not eligible for EIS relief and there are no immediate plans for a flotation. Management currently owns two-fifths of the company.

The House of Green ( has 15 acres of greenhouses under lease and the plan is to commence cultivation during the first quarter of next year. There should be production from partner growers in the coming weeks.

A 20,000 square foot extraction facility is already operational in Guernsey. It is producing cannabidiol distillate using its own technology and the expectation is that all the cannabis processed will eventually be grown in the Channel Islands.

The first batch of cannabis oil was produced in October. Naked Leaf and Oak & Crane have been acquired and they provide distribution and outlets for the cannabis oil produced.


Assuming the £2m is raised there will be £600,000 investment in a new facility and equipment. A further £250,000 will be spent on cultivation and £500,000 on extracting the cannabis oil. The rest will go towards working capital for a 12-month period. Management believes that this cash will be enough to fund the existing plans without returning for more cash.

Revenues are forecast to reach more than £5m in 2021 and they could quadruple by 2023. To put that in perspective, 2020 revenues are around £500,000.


The UK cannabis market is expected to be worth £1bn by 2025 and it could be worth even more with further relaxation of legislation.

There is still uncertainty concerning regulation in the UK, Europe and other parts of the world.

Even though, the Financial Conduct Authority (FCA) has come up with initial guidance on the assessment of cannabis-related companies that want to float on the Main Market there remains uncertainty about the final rules. That could hamper any plans for The House of Green to float.

Medicinal cannabis was legalised in 2018 but there has been uncertainty about the appropriateness of companies involved in the sector when it comes to the public markets.

Being Guernsey-based, The House of Green is likely to come under the overseas part of the regulatory plans. The idea is that those companies that have appropriate overseas licences can only be admitted to a London listing if the FCA is satisfied that their operations do not fall foul of the UK criminal property legislation. The FCA will assess each case individually.

Analyst research for the company can be found at