A medicinal cannabis producer which distributes products in the UK and two other countries has struck a multimillion-pound refinancing deal after deciding against an outright sale.
Sky News understands that Grow Group, which had been working with advisors at Alvarez & Marsal since the summer, will announce this week that it has received £2m of additional equity from existing shareholders.
The deal also incorporates a £10m debt-for-equity swap and maturity extension.
Sources said that Grow Group would also announce the appointment of Clare Holliday and Pierre van Weperen as co-chief executives.
They will succeed Ben Langley, the company's founder, who will remain a director following the refinancing.
Grow Group was established in 2017 to take advantage of the legalisation of medicinal cannabis products in the UK, and describes itself as the UK's largest supplier of quality prescribed cannabis medicines.
In addition to the UK, its products are sold in Australia and Germany.
Medical cannabis has been legal in Britain since 2018, when it became prescribable by specialist doctors for conditions including chronic pain, anxiety and epilepsy.
The company's operations are principally based in the UK, including a research and development facility near London.
"We're launching new products every month, all manufactured in our own UK facility, which gives prescribers and patients more choice
and consistent quality, in addition to our best-in-class portfolio of cannabis flowers," Ms Holliday said.
Research by Prohibition Partners suggests that Britain is the second-largest market in Europe for cannabis-based medicines, with 140,000 active patient users of the products expected this year.
(c) Sky News 2026: Medicinal cannabis producer Grow Group weeds out new funding
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