NeoCannBio completes $7.4 mn series B funding

South Korea's NeoCannBio, a medical cannabis startup backed by the Korea Institute of Science and Technology (KIST), announced on Tuesday that it has successfully secured 10 billion won ($7.4 million) in a series B investment.

The latest investment round saw participation from new investors, including QUAD Investment Management, Bilanx Investment, Donghoon Investment and Prologue Ventures. Existing series A investors, such as Medytox Venture Investment, HLB Investment and BM Ventures, also joined in the follow-up funding.

NeoCannBio had previously raised 4.5 billion won ($3.3 million) in series A funding at a valuation of 30 billion won ($22.2 million) in July last year.

In the series B round, the company achieved a valuation of 55 billion won ($40.6 million) and raised 10 billion won ($7.4 million). This represents a significant increase in valuation in just one year, nearly doubling its worth. 

With the newly secured funds, NeoCannBio plans to expand its business of supplying food- and cosmetic-grade cannabis-derived cannabinoids to the global market through a joint venture being established in Thailand.

The company also intends to accelerate its drug development projects, which are currently underway in collaboration with an Israeli university and local contract research organizations (CROs).

"Our next goal is to become a leading Asian medical cannabis specialist in the fast-growing global market, driven by the trend of relaxing cannabis regulations worldwide," CEO of NeoCannBio Ham Jungyeob said. "We are preparing for an official listing and aim to be recognized as a bona fide medical cannabis specialist in the stock market."

NeoCannBio is currently participating in a pilot project in the Andong Industrial Regulation-free Zone. It plans to complete the entire process of the medical cannabis industry in South Korea, from smart farming cultivation to medical-grade cannabinoid production, in accordance with good agricultural collection practices (GACP) and good manufacturing practice (GMP) standards, marking a significant milestone in the domestic cannabis industry.

Write to Young-Ae Lee at 0ae@hankyung.com