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Summary
- HempFusion Wellness raised US$ 17 million from its initial public offerings on the TSX.
- Stocks of cannabidiol firm rocketed 65 per cent on debut day, led by the promising legislative development in the US.
- Its first-day trading volume rushed to 2.8 million units. The company has a present market cap of approximately 193.5 million, according to TMX.
HempFusion Wellness Inc (TSX: CBD.U) debuted on the Toronto Stock Exchange on Wednesday, January 6. Its scrips gained almost 65 per cent (from issue price of US$1) on the very first day of trading.
The cannabis company successfully concluded its initial public offering (IPO) of 7 million common shares at US$ 1.00 per unit to raise US$ 7 million. The company further offered 10 million units (including Warrants) at the total gross price of US$ 10 million. HempFusion Wellness raised a total of US$ 17 million from its IPO.
The pot firm’s vibrant debut could pave the way for other marijuana companies exploring IPO opportunities this year in North America. Some of the cannabis firms eyeing an IPO in 2021 include Flora Growth, Vertical Wellness, BioMedican,
By Friday’s closing bell, HempFusion’s shares were trading at US$ 1.77, up 7 per cent since listing. Let us look at the company in detail:
HempFusion Wellness Inc (TSX: CBD.U)
The company operates in wellness cannabidiol (CBD)-based whole-food hemp nutrition. It sells the CBD products through 4,000 retailers across the United States. Its subsidiary, Probulin Probiotics, is one of the emerging probiotics firms in the US.
The company has total listed shares outstanding of approximately 117.28 million. Nearly 2.8 million units changed hands on the first day of trading. Its current market value stands at nearly US$ 207+ million, as per TMX data.
Image Source: ©Kalkine Group 2021
The CBD-based goods producer is also exploring a future listing on US-based exchanges, media outlets reports. The company could gain more momentum on the back of the US president-elect Joe Biden’s promise to decriminalize cannabis federally and New York Governor’s latest cannabis initiative.
HempFusion CEO Jason Mitchell claimed that he is delighted to gross US$ 17 million that will support the company’s strategic plans for 2021. The company is expected to invest more in research and development (R&D), sales, and distribution.
