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Summary
- Flow Beverage Corp. is going public on the Toronto Stock Exchange and will trade under the ticker symbol 'FLOW'.
- Started in 2015, Flow Water sells premium water and claims to have 17.5 million customers in North America.
- Flow Beverage (TSX:FLOW) came into being following a reverse merger of RG One Corp. and Flow Water in June 2021.
Stocks of Flow Beverage Corp. will commence trading on Wednesday, July 14, following exchange’s approval to list its shares on the TSX. The company will trade under the ticker symbol 'FLOW'.
It aims to raise C$65 million – C$35 via the public debut and C$30 million through non-brokered financing, the company informed in a statement in January this year.
Flow Beverage completed a reverse merger with RG One Corp. and Flow Water Inc. on June 29, this year, after which the company was renamed Flow Beverage Corp. Following the merger, Class A and Class B shareholders were offered FLOW’s multiple voting shares and subordinate voting shares.
As the company gears up to debut on the TSX, Flow founder Nicholas Reichenbach thanked the company supporters for widening its customer base across North America.
What does the future look like for Flow Beverage?
Celebrity-backed Flow Beverage has 20,000 retail distribution units across North America and has a manufacturing capacity of 350 million units per year, as per details on its official website. The company can capture new markets with its innovative Flow Collagen-Infused Spring Water and focus on revenue expansion.
The biggest advantage for Flow Beverage is its focus on environmental, social and governance (ESG) strategy. The company claims to have carbon-balanced operations and powers its facilities through renewable energy. It also aims to capture a sizeable market share of three fast-growing segments of the shelf-stable water category – premium, sustainable, and functional.
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The market size of global bottled water was valued at US$ 217.66 billion in 2020, according to report by a research firm Grand View Research. The industry is expected to grow at a compound annual growth rate of 11.1 per cent between 2021 to 2028. Flow Beverage seems to have the potential to compete in the shelf-stable water segment worldwide.
As people get more conscious of the environment and adopt sustainable way of life, Flow Beverage's eco-friendly packaging could boost the company's brand and add to its growth potential. Its bestseller product is priced at C$ 2.29 per litre.
Should you invest in FLOW stock?
Flow Water boasts of celebrity backers and shareholders such as musician Shawn Mendes, actor Halle Berry, band The Black Eyed Peas’ Taboo, basketball player Russell Westbrook and many others.
The Alkaline spring water maker has been building its brand with an oomph-factor while keeping in mind the sustainable and eco-friendly solutions.
In Q2 (quarter ended April 30, 2021), the company’s net revenue increased by 74 per cent to C$ 11.28 million while the year-to-date (YTD) net revenue was C$ 20.3 million. The gross profit stood at C$ 3.9 million in Q2. The net loss for the same period was C$ 19.3 million.
If you have a trading account with a brokerage company, you can select the quantity of FLOW stock and buy the shares after the trading session begins on Toronto Stock Exchange (TSX) from July 14.
