Booming CBD Market Makes Way for First Cannabis Related IPO: Phivida
-Written by Ruben A. Maciel
(FinancialPress) — The Canadian Stock Exchange (“CSE”) welcomes another promising prospect in the legal cannabis business sector on Tuesday, as CBD edibles manufacturer Phivida Holdings Inc. (CSE: VIDA) is slated to begin trading in the securities exchange — Becoming the very first CBD IPO in Canadian history.
The announcement comes after a November 21st submission, that was subsequently followed by approval of their final prospectus by British Columbia Securities Commission.
Going under the symbol VIDA on the Canadian Securities Exchange, Phivida comes into the fold with an array of promising upsides that will see it appear on investors’ radars in the coming weeks.
The leading standout factor going for the company is that it’s Board of Directors is composed of some of the heaviest hitters in the beverage and consumer products industries.
Phivida is helmed by John Belfontaine, who in the past has been involved in the brand marketing of blue chip super brands such as Nestle, L’Oreal, Molson, PepsiCo Frito Lays and more.
His team also includes a veritable who’s-who of the beverage industry, including former CEO of Red Bull Canada, James Bailey, and the current president of Select Wines and former GM at Mark Anthony Group, Chris Hoffmeister, as an advisor.
Hoffmeister’s former position had him managing a distribution network that encompassed hundreds of wine brands supplied across the Pacific Coast.
The bulk of the team is composed of members who’ve operated at the top of the food chain — As far as branding, market development and distribution goes, the team’s strengths all but ensure the proper development of the company’s massive potential.
Another key factor is its comparatively tiny $10-million pre-money valuation – set before the announcement of the industry-shaking acquisition of 9.9% of Canopy Growth (TSX: WEED) (OTC: TWMJF) by big alcohol stalwart Constellation Brands for a whopping $245 million.
VIDA‘s closest cannabinoid-infused beverage market comparables, Tinley Beverages (CSE: TNY) and Isodiol International, Inc. (CSE: ISOL) (OTC: ISOLF), each recently saw massive gains.
Tinley saw double-digit growth right after the Constellation deal, while Isodiol experienced an astounding 300% growth on its heels – going from $0.27 to its current $1.51.
The X-factor here, however, is that when used as comparables for Phivida‘s $10M valuation, we find Tinley on the low end with $50M and Isodiol on the higher end, with $160M.
Finally, VIDA comes out of the gates aggressively, with a well-established distribution network conformed by 5 channels, 4 segments, and in 4 states and a true-and-tested product line that has already found success in demanding markets such as California, Colorado, Oregon and Washington.
All of these company-specific positives are bolstered even further by the fact that Phivida is strategically positioned at the intersection of four major growth verticals within a $1 Trillion Global Health and Wellness market.
The US Cannabis market alone is expected to reach $50B by 2024 by Bloomberg, and the company‘s products fit the mold to tap into the organic beverage market, the $400 billion organic functional food and beverage market and the $400 billion therapeutics and NSAIDS market with its CBD-infused nutraceutical products.
Phivida is set to commence trading today at market open as (CSE:VIDA)
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