Jersey brand

UK group moves to Jersey after cannabis product rules eased

British consumer goods company Tenacious Labs is moving its headquarters to Jersey to benefit from the Channel Island’s move to ease rules on income from cannabis-related products.

Chief executive Nick Morland said the move from London to Jersey was necessary to allow the group, which uses ingredients from the cannabis plant for its wellness products, to grow further.

The company, which launched in London two years ago, aims to market non-medical products containing the psychoactive cannabinoid THC in countries and states where it is legal.

But UK laws prohibit investment in non-medical THC products, unlike Jersey, which last summer updated rules allowing income from all cannabis products as long as they are legal in the country. where they are sold.

“We are a much more attractive investment proposition based in Jersey than in London as it is now,” Morland said.

Currently, Tenacious Labs sells wellness products containing the non-psychoactive cannabis compound CBD, which can be sold without a prescription. Its brands such as Press Pause and Hoo Raa make CBD-infused toiletries and lubricants.

The group, which hopes to complete its move to Jersey by August, is raising around $100 million to invest in expanding its brands.

The company, which also has offices in Miami, hopes the move to Jersey will make it easier to produce legal THC products at its Colorado manufacturing facility, where it creates THC-infused beverages, edibles and pet products. cannabis.

A range of CBD products from Hoo Raa © Hoo Raa

In recent years, Jersey has vied to become a global hub for the growing cannabis industry, aiming to diversify away from cattle and potatoes.

Other companies that have opted for Jersey instead of the UK include medical cannabis group Northern Leaf.

The company, which grows pharmaceutical-grade medical cannabis, said it could have applied for a license to grow cannabis in the UK, but would not have been allowed to export its products.

Group chief executive Don Perrott said the export option was essential because the UK cannabis market was not large enough to sustain its business on its own.

“The UK still has a very small medical cannabis market – around 12,000 patients,” he said.

Daniel Houseago, the Jersey Group’s director for economics and partnerships, said he expects the Channel Island to soon earn just under £100m a year from the plant. cannabis in taxation.

However, he said Jersey’s plan to lure cannabis companies out of the UK was a risky balancing act, as he didn’t want his new favorite crop to threaten his reputation as a financial services hub.

The goal was to create “the highest regulatory standards in the world,” Houseago said. He envisions cannabis companies floating in London, but basing their headquarters in Jersey.