“Tis the season” for investing in cannabis companies. With the sector having caught fire again in recent months, investor focus has returned to this space. Many of the established public companies have already had significant run-ups in share price. Investors seeking greater growth potential may prefer looking at earlier stage companies.
Just in time for Christmas, a new public cannabis company is announcing its IPO: Phivida Holdings Inc. (CSE:VIDA). Why Phivida?
Timing. The Company’s business model focuses on hemp-derived CBD products. The World Anti-Doping Association has recently revoked its ban on hemp-derived cannabidiol (CBD). Many investors now know that cannabinoids are natural substances that are found in the human body (as “endocannabinoids”), and are now considered to be essential to human health.
With WADA’s recent decision to embrace hemp-based CBD products as legitimate health supplements, this opens up Phivida’s diverse lines of CBD wellness products for use by elite-level athletes as well as ordinary users seeking fitness/wellness benefits. Close on the heels of WADA’s announcement, on December 11, 2017 the World Health Organization also weighed in on the subject of hemp-based CBD.
A WHO report notes “no adverse health outcomes but rather several medical applications for cannabidiol”. In comparison, many if not most of the new drugs produced by Big Pharma today and legally approved for our use have a plethora of adverse health outcomes attached to their usage. Phivida’s high-quality products are non-GMO, 100% Vegan, have no sugar, nuts, soy, or gluten additives, and are lab-tested and GMP certified.
On December 18, 2017, Phivida Holdings announced its IPO, trading on the CSE Exchange, with trading to commence on December 19th, under the symbol “VIDA”. The capital structure with respect to this Initial Public Offering consists of 14,375,000 units. Each unit consists of one common share and one-half common share purchase warrant.
Each whole warrant entitles the holder to acquire one additional common share at an exercise price of $0.75. Warrants remain valid for a period of 24 months from the closing date of the Offering, subject to an accelerator clause.
In addition to the Company’s product lines of hemp-infused juices, teas, and vitamin shots, Phivida also offers hemp oil extracts and tinctures. VIDA’s products will be marketed as functional foods and nutraceutical supplements. Phivida is aiming to capture a leadership share of the U.S. CBD hemp oil market.
In its press release, Phivida CEO John-David Belfontaine shared these thoughts:
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. We look forward to providing more exciting updates and milestone achievements as we enter this rapid-growth phase in the life of Phivida.
This “global stage” has recently gotten even larger. On November 28, 2017; Canada’s federal government announced the legalization of cannabis-infused foods and beverages on this side of the border. This opens up the Canadian market as well for VIDA’s hemp-infused products, as part of Canada’s move toward full legalization on July 1, 2018.
Proceeds from this IPO will be dedicated toward the full-scale manufacturing, marketing, and distribution of Phivida Nutrition and Phivida Enhanced products. These products will be marketed under the “Vida+” brand line.
While still an emerging sector, marijuana-based CBD products have already achieved significant market penetration as medicinal products, and (in some U.S. states) recreational products. However, both legal and attitudinal barriers remain for these products.
Hemp-based CBD products are both newer entrants to the sector and face less obstacles in penetrating North American and international markets. Phivida Holdings is a new public company poised to capitalize on these newest cannabis markets.
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