SYDNEY – Industrial hemp company Ecofibre has been listed on the Australian Securities Exchange (ASX), hoping to capitalise on the opening of hemp markets in Australia and the United States.
The company is capped at AU$309 million on listing, after raising AU$20 million at AU$1 per share via the initial public offering (IPO).
Ecofibre has experience breeding and growing hemp and has commercialised this over the past two years, with sales and margin growth across its businesses. However, the company has run at an AU$8.7 million loss over the past two years, but is expected to break even this year, potentially becoming profitable from the 2020 fiscal year.
The funds raised from the IPO raised will be applied to expand Ecofibre’s businesses, which it says will put a strong emphasis on developing its high-tech fibre textile Hemp Black, which focuses on innovative solutions across consumer markets, including fashion, athletic leisure wear, healthcare, composites and building materials.
Ecofibre’s other businesses are Ananda Health – which produces nutraceutical products – and Ananda Food, which produces food-grade hemp seed oil, protein and hemp seeds grown from industrial hemp crops in Tasmania.
Ecofibre has its products in more than 2000 US pharmacies, and says it hopes to lift its presence when chains like Walmart begin stocking the types of items they offer this year.
The business is headed by Barry Lambert, who is best known for building Count Financial, and CEO Eric Wang, former Perpetual CEO - another company listed on the ASX.