Listed under the health care industry, Ecofibre Limited (ASX: EOF) commenced trading on the Australian Securities Exchange on 29 March 2019.
On 1 April 2019, Ecofibre informed that its directors Eric Wang, Barry Lambert, and Jon Meadmore hold approximately 12.93 million shares, 69 million shares, and 508k ordinary shares, respectively, via their direct and indirect interest in the company.
Ecofibre Limited is focused on making the planet greener with the use of a new sustainable source of raw material, that is hemp. The innovator operates as a frontrunner in the hemp industry since its registration in 2009. Now, its massive success has brought the company to strike the ASX Listing Board.
EOF’s official listing on stock exchange comes after the successful Initial Public Offering (IPO) of A$20,000,000 via an issue of 20,000,000 fully paid ordinary shares at A$1 per share, satisfying to the prospectus conditions as lodged by the company. The public offering was, however, restricted to just Australia and New Zealand regions.
The company operates as a provider of hemp products in the United States and Australia by developing and utilising innovative technology in extracting the incredibly versatile nutritional supplement, hemp, from the hemp seed.
With the prior experience in breeding and growing hemp, Ecofibre has commercialised its knowledge over the last two years, backed by extensive research and innovation, for developing new ways to use hemp in nutraceutical, industrial and consumer products.
Ecofibre primarily operates through its subsidiaries namely Ananda Health, Ananda Food and Hemp Black.
Ananda Health- In the United States, Ecofibre Limited produces nutraceutical products for the pet and human consumption including the manufacturing of topical salves and creams. This underscores the 2018 Farm Bill signed by the President of the United States in December 2018 that made hemp a federally legal agricultural commodity that can be commercially cultivated and used in products in the US. As per Ecofibre’s Prospectus, Ananda is at an economic scale, profitable and proliferating. Ananda Health produces under two major brands: Ananda Hemp and Ananda Professional.
Ananda Food- Under this segment, Ecofibre grows and manufactures Hemp food products in Australia, including dehulled hemp seed, protein powders and hemp oil. Its food manufacturing facility was started functioning in November 2018 with rapidly expanding growing areas. Hemp consumption was legalized in Australia in 2017 end.
Hemp Black- Ecofibre develops textiles and composite hemp-based materials in collaboration with its partner Thomas Jefferson University (TJU) based in the United States.
Ecofibre intends to utilize raised funds towards the commercialisation of Hemp Black and to cater Ananda Food’s working capital requirements.
The use of hemp for industrial purposes is widely accepted worldwide as it contains only trace levels of THC and is therefore not psychoactive, unlike marijuana. It has been observed that the industrial hemp market has fueled lately with health industry and patients increasingly relying on its health benefits, and regulators across the globe have been responding by making hemp products legal and more accessible.
Ecofibre stated that it aims to continue increasing its working capital to take advantage of expansion opportunities so that the resultant growing sales generate profits as well as maximize investors’ wealth.
The listing of Ecofibre securities now presents the opportunity for investors to take part in the rapidly growing hemp industry by investing via on-market trade.
EOF soared 70%, settling at A$1.70 on its debut performance on ASX on Friday. EOF last traded at A$1.610 on 1 April 2019.
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