HempFusion Wellness will soon trade on the Toronto Stock Exchange.
The Denver-based hemp and CBD company will begin listing in late November, under the symbol CBD, after structuring a $17 million offering.
An IPO in Two Parts
In 2019, HempFusion raised $42 million through private rounds. Now, the company is doing its first public offering of $17 million.
A first round of $7 million allows investors to buy up to $10,000 in free-trading common shares with no sale restrictions.
A second round of $10 million will offer units comprising one share and one-half of one common share purchase warrant. Shares from this round have no purchase limit, but include a contractual hold period that prevents them to be traded for four months after the listing date.
The warrants themselves have no contractual hold period.
The company is aiming to go public on November 26, to be confirmed.
A ‘Trojan Horse’ Strategy to Conquering the Global CBD Markets
HempFusion owns a family of brands across the CBD spectrum including topicals, capsules and tinctures that make up 46 SKUs.
Founder Jason Mitchell, who’s a naturopathic doctor by trade, formulated all the products himself.
The company also owns Probulin, a brand of dietary supplements based on probiotics and enzymes to help boost the immune system. Probulin products do not contain CBD, but the brand is of the cornerstones of HempFusion’s overall market strategy for CBD.
“We knew that we wanted to have something that offered us the ability to enter, not only retailers that didn't allow CBD, but countries that didn't allow CBD,” says CCO Daniel Brody.
Probulin, which was founded by HempFusion founder and CEO Jason Mitchell, provides a gateway into …