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Hempaco (HPCO), a producer of hemp – based cigarettes, revealed conditions for a proposed initial public offering of $ 15 million.
The company said so plans to offer 3M shares at a price between $ 4 and $ 6 per share, which would result in $ 15 million if valued at the midpoint. Insurers will be given a 45-day option to buy 15% of the shares, which will be offered at an IPO price to cover the common deals. Boustead Securities serves as a bookrunner.
Following the offering, Green Globe International will own approximately 80% of the company’s outstanding ordinary shares.
Hempacco manufactures and sells a domestic brand of hemp-based cigarettes called The Real Stuff Smokables. The company has entered into joint venture agreements to launch other brands, including Cheech & Chong-branded smoking products. Hempacco also manufactures hemp roll paper for HBI International.
For 2021, Hempacco reported a net loss of $ 1.9 million on revenue of $ 1.2 million.
The company said it also has patented technology to sterilize the hemp used in its cigarettes with terpenes for flavoring, cannabidiol and cannabigerol. Hemp-based cigarettes do not contain either tobacco or nicotine.
For a more in-depth look at Hempacco, see SA contributor Donovan Jones Hempacco begins IPO process in the United States.
