IPO Archives - Page 3 of 3 - Green Market Report

William SumnerMay 15, 2018
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7min50933

Without a doubt, The Green Organic Dutchman Holdings (TGOD) has one of the hottest IPOs in the cannabis industry right now. Initially slated to raise around $102 million, TGOD has amended their IPO twice due to investor demand and have grown an already impressive offering to $132,263,225.

For all the Johnny Come Latelys kicking themselves for not getting in on this red-hot IPO sooner, have no fear. There is already a handful of new investment IPOs waiting just around the corner, and they all look just as promising as TGOD. Here are four upcoming IPOs that you need to keep an eye on:

Acreage Holdings

Founded by a team of Wall Street veterans and financial gurus, Acreage Holdings is a well-financed company with a diverse portfolio. With licenses in cannabis cultivation, processing, and retail dispensaries; the company is currently operating in 11 U.S. states and has plans for further expansion. Most notably, the company rocked the world of cannabis and politics when it announced the addition of former U.S. Speaker of the House John Boehner and former Massachusetts Gov. Bill Weld to its board of advisers. So far the company has already raised $50 million and plans to go public in Canada sometime this year. With two heavy hitters like Boehner and Weld on their board and one of the largest cannabis cultivation footprints in the industry, Acreage is bound to give the top dogs like Canopy a run for their money.

Acreage is focused on medical marijuana and with a portfolio that spans 11 states, it has the largest footprint of any U.S. cannabis company. Initially, the company began life as High Street Capital and had intended on just making investments in cannabis companies, but it has since pivoted to become an operator. The IPO is expected to occur later this year in the Canadian market.

MedMen

This next IPO is not really an IPO, but nevertheless, it’s something that you should take note of. MedMen is a California-based cannabis retailer with operations in multiple states. As one of ten licensed medical cannabis operators in the state of New York, the company holds a lease on Fifth Avenue in Manhattan and will soon open a retail dispensary directly on the Las Vegas strip. Instead of doing a simple IPO, the company has decided to go public through something called a Reverse Takeover (RTO) and had entered into a letter of intent to merge with the publicly traded company OutdoorPartner Media Corporation. Instead, MedMen is doing its RTO with Ladera Ventures Corp. (TSXV:LV.H).  Once the RTO is complete which is expected in the second quarter of this year, MedMen will essentially become a publicly traded company itself.

MedMen is also beginning life as a public company in Canada. Adam Bierman, the Chief Executive Officer, and Co-Founder says he believes the company can raise more money in Canada versus the U.S. stock market.

MJIC Inc.

Compared to the other IPOs discussed so far, this one has been flying under the radar a bit, which is why you definitely want to keep a close watch on MJIC Inc. MJIC is a self-described “omnichannel” for the cannabis industry attempting to connect the multiple segments of the industry through a variety of services that it offers; such as accounting, compliance, e-commerce, etc… The company hopes to launch its IPO sometime in the third quarter of this year and plans to use the funds for its expansion in California as well as future mergers and acquisitions down the road.

CEO Sturges Karban said the company plans on raising at least $20 million in the offering, which has been discussed for some time, but the planning began in earnest over the last couple of months. In addition to creating a distribution channel, MJIC also owns MJIC News and the Rolling Paper Depot.

Dixie Brands

The maker of the famous edibles brand, Dixie Elixirs, the Colorado-based cannabis company is currently considering its IPO options. This year the company expects to generate approximately $20 million in revenue and expects to more than double that figure ($50 million) by next year. Last month the company closed a $4 million funding round and hopes to use those funds to expand its operations from four states to 10. Details about its upcoming IPO are scarce, but what is known is that it would be offered either at the end of this year or sometime in early 2019. Speaking with Bloomberg, Dixie CEO and majority shareholder, Chuck Smith, said that the IPO would go towards funding future brand acquisitions. “We need access to capital, we need liquidity because this growth is very expensive,” said Smith. “We’re going to continue to acquire brands or innovate them.”


Debra BorchardtMay 9, 2018
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3min1210

The Green Organic Dutchman Holdings Ltd. (TSX:TGOD) announced that it has issued an additional 4,726,500 units at $3.65 per Over-Allotment Unit raising additional aggregate gross proceeds of $17,251,725 pursuant to the exercise of the over-allotment option. This option was which was associated with the recent IPO granted to a syndicate of agents co-led by Canaccord Genuity Corp. as sole bookrunner and PI Financial Corp., and including Industrial Alliance Securities Inc., INFOR Financial Inc., Echelon Wealth Partners Inc. and Mackie Research Capital Corporation.

With the Over-Allotment Option, TGOD will have raised aggregate gross proceeds of $132,263,225 under the IPO by issuing an aggregate of 36,236,500 units of TGOD, including the Over-Allotment Units.

“We are extremely pleased with the markets’ support of our IPO, which is the largest to date on the TSX in the cannabis space. The additional funds will support the Company’s plans of becoming the world’s leading brand of organic cannabis. The further investments by Aurora Cannabis Inc. (ACBFF) in both the IPO and the Over-Allotment Option bring Aurora’s total investment in the company to $78,145,562 and further validate TGOD’s business plan and value. The partnership with Aurora has been excellent with great cooperation across all departments of our organizations. We could not ask for a better partner,” said Robert Anderson, TGOD’s Co-Chairman and CEO.

In a company statement, TGOD noted that each Over-Allotment Unit consists of one common share and one-half of one common share purchase warrant. Each Warrant is exercisable into one Common Share at the price of $7.00 per Common Share until May 2, 2020, subject to an acceleration right whereby the Company may provide written notice to the registered holders of the Warrants  that the expiry time of the Warrants shall be accelerated to a date which is 30 days after the date of such Warrant Acceleration Notice, if, at any time, the volume-weighted average trading price for the Common Shares is equal to or greater than $9.00 for any ten (10) consecutive trading day period.

Stock Performance

The stock was priced at C$3.65 for the IPO and shot up to C$6.44. It has since pulled back and was lately trading at C$3.67.


Jack SmithApril 30, 2018
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5min1100

The Green Organic Dutchman Holdings (TGOD) said it would boost the size of its initial public offering to $115 million based on increased investor demand. The stock will begin trading on the Toronto Stock Exchange at the market open on May 2, 2018.

Aurora Cannabis, which already owns a stake in TGOD, will be exercising its right to participate in the IPO, which has yet to set a date. Aurora, which already trades on the Toronto Stock Exchange under the ticker symbol “ACB,” owns approximately 17.5 percent in TGOD.

As a result of the added purchases by Aurora, TGOD amended its prospectus, which initially had the company raising $102.2 million, selling 28 million shares at $3.65 per unit. A unit consists of one common share in the company, as well as half of a share purchase warrant. The warrants are exercisable at $7 per share.

TGOD, which refers to itself as a “research and development company” and is led by CEO and Co-Chairman Robert Anderson, will use the funds for general corporate purposes, including helping to build out its facilities in Ontario and Quebec. Currently, it has facilities in Ancaster, Ontario, where it produces cannabis from.

The company was issued a license by Health Canada that allows it to produce dried marijuana, marijuana plants, and fresh marijuana at its 100-acre property near Hamilton, Ontario, and to sell such marijuana products within Canada to Licensed Producers. TGOD has constructed a modular cannabis oil extraction laboratory for the purpose of developing traditional and new extraction technologies and products through research and development.

In addition, TGOD has also applied for a license from Health Canada for the extraction lab. The company has also acquired a 49.99% interest in a Québec company in a 72.4-acre property in Salaberry-de-Valleyfield, QC, that it intends to develop into an
820,000 sq. ft. hybrid-greenhouse cannabis production facility, as well as a 2,700 sq. ft. research and development
breeding facility and a 20,000 sq. ft. flagship licensed dealer facility through a wholly owned subsidiary. TGOD also received a building permit in December 2017 to construct a 2,700 sq. ft. breeding and research facility in Québec that will be used to secure a cultivation License from Health Canada for the Québec Facility.

Investment bank Canaccord Genuity is acting as the sole bookrunner in the offering, which is being co-led with PI Financial, Industrial Alliance Securities Inc., INFOR Financial Inc., Echelon Wealth Partners Inc. and Mackie Research Capital Corporation as agents.

The timing of the upsized offering is curious, especially after cannabis-related equities fell sharply in the first quarter, particularly those based in Canada. However, TGOD  believes it is one of only a few LP’s that provides organic cannabis which provides Canadians with a safer, more sustainable option for cannabis use, especially for medicinal purposes. With concerns over pesticides, organic cannabis is becoming more popular.

Extreme optimism led to investors bidding up cannabis-related stocks in 2017, especially towards the end, but that bubble burst a bit as investors fretted when Canada would legalize cannabis for adult use. Prime Minister Justin Trudeau and his team have hinted that recreational use could start in the fall, as opposed to July, as had been previously thought.

The sharp corrections seen in Canadian cannabis stocks are indicative of the entire cannabis sector in the first quarter. The Green Market Report Cannabis Company Index fell 21.9 percent in the first quarter, as regulatory concerns, especially in the U.S., weighed on investors’ minds.


StaffMarch 14, 2018
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3min1600

The Green Organic Dutchman Holdings Ltd. (TGOD)  announced that it has filed an amended and restated preliminary long form prospectus with the securities regulatory authorities in each of the provinces of Canada in respect of its previously announced initial public offering (IPO). The company plans a minimum offering of $75 million with a maximum offering of $100 million through the issuance of a minimum of 20,547,945 units and a maximum of 27,397,260 units at a price of $3.65 per unit.

The IPO is being led by Canaccord Genuity Corp. as the sole bookrunner and co-led with PI Financial Corp., together with Industrial Alliance Securities Inc., INFOR Financial Inc., Echelon Wealth Partners Inc. and Mackie Research Capital Corporation as agents. To date, the company has raised approximately $160 million dollars and has over 4,000 shareholders.

TGOD grows high quality, organic medical cannabis with sustainable, all-natural principles and its products are laboratory tested to ensure patients have access to a standardized, safe and consistent product. Additionally, TGOD has a capacity to grow 116,000 kg of cannabis and is situated on approximately 175 acres of land between two of the most populated areas of Canada; Ontario & Quebec.

According to the company statement, each unit consists of one common share of the TGOD and one-half of one common share purchase warrant of the company. Each warrant is exercisable into one common share at the price of $7.00 per warrant Share, subject to adjustment, on or prior to 4:00 p.m. eastern time on the date that is the earlier of (i) 24 months after the Closing Date and (ii) the date specified in any Warrant Acceleration Notice. If, at any time, the volume-weighted average trading price of the common shares of the company is equal to or greater than $9.00 for any 10 consecutive trading day period, the company may provide written notice to Computershare Trust Company of Canada as warrant indenture trustee and the registered holders of warrants  that the expiry time of the Warrants shall be accelerated to the date which is 30 days after the date of such Warrant Acceleration Notice, subject to TSX approval.

 


Jack SmithJanuary 9, 2018
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4min1880
Elixinol Global, a newly created company, said that it would continue to move forward with its initial public offering on the Australian Stock Exchange (ASX), aiding to provide investors with access to the burgeoning demand for cannabis-infused products, despite worries around the globe.
As part of the offering, Colorado-based Elixinol is merging with Hemp Foods Australia and Elixinol Australia to form Elixinol Global. The companies did not say how much existing shareholders and investors would own of the newly created company, but noted the benefits of the combined company, calling it a “single-source access.”
“With global exports of Australian medical marijuana now approved, the world will
soon have single-source access to best in class medical marijuana and hemp
products from Elixinol, one of the world’s most trusted brands,” said Paul Benhaim,
CEO of Elixinol Global, in a prepared statement, announcing the transaction.
Elixinol Global’s CFO, Ron Dufficy, noted Benhaim’s previous achievements (Benhaim founded Elixinol, Hemp Foods, and Elixinol Australia) as part of a way to create value. “It is time to offer investors an opportunity to take advantage of the collective footprint in this revolutionary emerging global market while capitalizing on potential efficiencies,” Ron added.
The separate entities will still retain their core competencies, just under a single roof. For Australian-based Hemp Foods, that means focusing on making and selling “quality hemp food products and skin care.” Colorado-based Elixinol will still continue to sell “hemp-based
cannabidiol (CBD) dietary supplements and topical products from US and European
hemp,” whereas Elixinol Pty will “provide the globe access to medical marijuana exports from
Australia.”
The legal cannabis-infused products industry is expected to grow by more than three-fold over the next four years, topping $20 billion by 2021, according to data compiled by BDS Analytics. Separately, Brightfield Group, a cannabis investment research firm, puts the international market for cannabis-related products at an expected $31.4 billion by 2021, up from $7.7 billion today.
Whether it’s $20 billion or more than $31 billion, it’s clear the market is expected to grow, despite the proclamations U.S. Attorney General Jeff Sessions has made, as he attempts to curtail the legal cannabis market in the U.S.  Benhaim believes that the newly-formed Elixinol will be important to health-conscious consumers looking for their goods and products.
“We’ve worked very hard to make Elixinol the most trusted CBD brand in the world,” Benhaim said. “Elixinol Global is only the beginning of expanded opportunities for investors, strategic partners, and our global customers.”
Shares of the newly formed company are expected to start trading on the ASX on Jan. 8. under the ticker “EXL.”

Jack SmithDecember 19, 2017
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4min1400
North American consumers spent nearly $7 billion in 2016 buying marijuana-infused products, including $1.7 billion in products aimed for adult use, up nearly 40 percent from 2015. As the industry is set to significant growth over the next few years, Phivida Holdings wants to be a huge part of that.
Phivida announced it has completed its initial public offering (IPO) on the Canadian Securities Exchange, raising $5.75 million in an effort to grow its products, which include hemp oil infused beverages. The company says its beverages will include “a proprietary blend of nutraceuticals and infused with nanoencapsulated hemp oil extracts.”
It also plans to sell and market functional foods and supplement nutraceuticals under the Vida+ brand in an effort to capture a significant part of the hemp oil market.
The legal cannabis-infused products industry is expected to grow by more than three-fold over the next four years, topping $20 billion by 2021, according to data compiled by BDS Analytics.
As part of the offering, which was led by Canaccord Genuity, the company sold 14.375 million shares and one-half of one common share warrant at 40 cents a share. The company noted that the warrants are exercisable at a price of 75 cents per share for a period of 24 months after the offering. If the shares were to reach $1 and stay there for 20 consecutive days, the expiration would be accelerated by the company.
CEO John-David Belfontaine said the offering was the result of the hard work and effort of several different groups, including the board of directors, executive team, and operational team.
“This is a significant achievement for The Company, but just the beginning of our shared success, as we prepare to launch our premium suite of Phivida brand CBD products onto a global stage in 2018,” Belfontaine said in a statement, announcing the offering. “We look forward to providing more exciting updates and milestone achievements as we enter this rapid growth phase in the life of Phivida.”
Shares will trade on the CSE under the symbol “VIDA.”
Pronounced “fii-vee-daah,” Phivida aims to bring the combination of modern western science and plant medicine together, according to its website.
The company markets its products to a number of different consumers and with the money, it’s raised, hopes to grow its distribution across the globe.
Currently, Phivida uses its nanoencapsulation technology to convert lipid-based cannabinoids into “water-soluble delivery format enhancing bioavailability and timed released within the body.” As the self-described cannabidiol (CBD) premiere brand, it also offers products where CBD’s are infused with other beverages, foods, and supplements.
Consumers being targeted are those who have a wide range of health concerns, such as those dealing with chronic pain, all the way up to those who have terminal diseases.

StaffNovember 28, 2017
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3min1320

Canadian-based Cannabis Growth Opportunity Corporation filed a  prospectus for an initial public offering (IPO) valued at C$75 million listing the companies it may invest in. The shares will be priced at $2.50.

According to a statement, “The Corporation’s investment objectives are to provide holders of Common Shares long-term total return through capital appreciation by investing in an actively managed portfolio  of securities of public and private companies operating in, or that derive a significant portion of their revenue or earnings from, products or services related to the cannabis industry.”

The portfolio will be invested primarily in publicly traded equity securities, but may also invest up to 40%  of the Corporation’s total assets in private equity investments. The Portfolio composition could vary over time, generally, though it will seek to invest approximately 60% of its total assets in public companies and 40% of its total assets in private names. Eight Capital will act as agent.

According to the IPO filing, these are some of the companies that are expected to be in the initial public portfolio: Aphria Inc., Canopy Growth Corporation, MedReleaf Corp., CannTrust Holdings Inc., Cannimed Therapeutics Inc., Cronos Group Inc., The HydropothecaryCorporation, Organigram Holdings Inc., Friday Night Inc., Supreme Pharmaceuticals Inc., DOJA Cannabis Company Limited, Emerald Health Therapeutics, Inc., Harvest One Cannabis Inc., Maricann Group Inc. and Village Farms International Inc. StoneCastle Investment Management
Inc. (the “Investment Manager”) will be responsible for all investment decisions for the public portfolio.

The private company portfolio plans to give access to “private investments which the corporation
believes will become liquid either by a public listing or through a disposition within 12-24 months
and which exhibit strong growth and the potential for profitability. The Corporation will be
responsible for all investment decisions for the Private Portfolio with Bruce Campbell, the
Corporation’s Chief Investment Officer, being principally responsible for the investment
management of the Private Portfolio.”

 


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