Swiss Life Sciences Group has created a platform to raise funds for the CBD industry, which will be based in Luxembourg. The platform allows the issuance of notes to professional investors in the EU and UK financial markets and a wrapper facility (specifically for the French market).
A securitization vehicle allows companies to raise finance against their assets and businesses in a regulated environment and to create flexible securities, which can then be acquired by investors interested in gaining securitized exposure in the CBD space.
Jean-Pierre Engele, COO at Savim SA, the group’s origination and production business and former head of Special Situations and Event Driven Investing at Dresdner Kleinworts Bank, explains: “Due to the nature of the cannabis and CBD industry and general misconceptions regarding its legality, even opening a bank account for a genuine legal CBD business can be a challenge, as can credit card processing for cross-border sales, so of course, raising money from the traditional banks is almost impossible. A securitization vehicle provides added value and is the perfect solution for companies operating in the legal and fast growing medical and wellness sectors, to raise additional finance against their assets, and Luxembourg provides the perfect transparent and advanced regulatory environment.”