David Beckham, famed for his prowess on the football pitch, has made a significant business move by offloading his shares in a cannabinoid product group that has faced numerous challenges since its London IPO three years ago.
The company, originally known as Cellular Goods but now rebranded as Cel AI, experienced a dazzling stock market debut, with shares nearly quadrupling from their initial launch price of 5p on the first day of trading. However, the journey for the former football icon’s investment took a downturn from there.
Beckham’s initial 5% stake, acquired for 1p per share prior to the float, was part of a strategic move that the company and its advisors heavily publicized. However, DB Ventures, the entity overseeing Beckham’s business interests, has since divested its shares. Both Beckham’s representatives and Cel AI declined to provide comments on the transaction.
Despite a promising start, Cel AI encountered a series of setbacks, including the withdrawal of its CBD-infused food supplements due to regulatory issues, alongside advertising bans imposed by tech giants Facebook and Google. Moreover, the departure of Beckham’s appointees to the board further signaled the company’s challenges.
Beckham, who initially profited from selling ten million of his shares at 1.2p apiece, likely incurred losses on the remaining holdings, as the company’s share value dipped below a penny since May last year. Speculation suggests that the sale of a majority stake in DB Ventures to Authentic Brands Group in 2022 could have influenced Beckham’s decision to divest his Cel AI shares.
Despite setbacks in his investment portfolio, Beckham’s brand continues to flourish, bolstered by his diverse business ventures, including ambassadorial roles and successful ventures in media and fashion alongside his wife, Victoria. Their recent ventures, including a Netflix documentary series, have added to their growing empire, showcasing Beckham’s enduring appeal beyond the football pitch.
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David Beckham Sells Stake in Troubled CBD Venture
