A pharmaceutical company specializing in cannabis-derived medications and supported by the tobacco giant Imperial Brands has taken steps to appoint administrators, only months after appointing a former Conservative Party chief executive as chairman during a significant rebranding effort.

Oxford Cannabinoid Technologies (OCT), focused on creating prescription pain relief solutions, delisted from the London Stock Exchange last year, citing persistent market volatility in the UK that severely impacted its stock price.

Founded in 2017, the company aimed to revitalize its operations as a private entity. In February, it underwent a rebranding to Octavian Therapeutics, elevated Lord Mott, a non-executive director, to the role of chairman, and unveiled plans for a substantial fundraising campaign to secure £10 million.

Despite these ambitions, the company reportedly faced challenges in raising needed funds, prompting an application to the High Court for the appointment of Rushtons Insolvency as the administrator.

Representatives from OCT, Rushtons, and Imperial Brands, which held a 9.6 percent stake in OCT and previously had board representation, have declined to comment on the situation. A source has indicated that many biotech firms in the UK are currently struggling with capital and liquidity issues.

When OCT went public in 2021, it raised £16.5 million and had an estimated valuation of £48 million. However, it delisted in June 2022, citing instability within the UK public markets, which it claimed negatively influenced investor sentiment towards biotech firms, particularly those publicly traded. The company noted that this market turbulence hindered its ability to maintain a viable market valuation reflective of its scientific and clinical accomplishments, subsequently hampering its fundraising efforts for development projects.

Casa Verde, a venture capital firm focused on cannabis investments with connections to celebrities like rapper Snoop Dogg, was also among the company’s shareholders. It remains unclear whether Casa Verde still holds any stake in OCT, as they have yet to respond to requests for comment.

During the elevation of Mott, who served as the Conservative Party’s chief executive from 2020 to 2022 and was previously a campaigning director, the firm emphasized that his role would provide vital access to a broad network of investors and industry leaders crucial for the growth of Octavian.

Mott commented on his new position, expressing his commitment to ensuring investors understand the potential of Octavian’s drug discovery initiatives and the commercial opportunities on the horizon.

The trend of small-cap biotech firms delisting has continued, with companies like Destiny Pharma also entering administration recently.