Emeralds might attract tens of thousands of dollars but Emerald Clinics’ (ASX:EMD) little green gems have attracted millions, meaning the company can finally make a share market debut.

Emerald has been hoping to fill its IPO for a lion’s share of 2019, so it’s all systems go now the company’s rattled the tin for more than $8m.

The cannabis clinic manager will be one of the first companies to list on the ASX this year.

Emerald managing director and CEO Dr Michael Winlo confirmed the company’s successful raising when speaking to Stockhead yesterday.

“We’re currently deep in the purchase of finalising the fundraising for our IPO,” he said.

“The book is covered, which we’re pleased to report, and we will close off this Friday. And then we expect to list it sometime in early February.”

Things were looking good last year for IPOs with more than 60 making it to market in 2019 and at least 37 achieving positive gains their first year on market.

Among the top gainers was Uniti Group (ASX:UWL), a telecommunications company that made a whopping 500 per cent gain by December after listing last February.

READ: IPO Watch: These are the top ASX debutantes of 2019

Listed date ASX Code Company Funds raised ($m) IPO share price Closing Price Jan 14 % Change
02/13/2019 UWL Uniti Group Ltd 13.1811 0.25 1.585 565
09/23/2019 OSX Osteopore Ltd 5.25 0.2 0.67 235
01/29/2019 SPT Splitit Payments Ltd 12 0.2 0.655 228
06/07/2019 VVA Viva Leisure Ltd 20 1 2.77 177
06/12/2019 PBH PointsBet Holdings Pty Ltd 75 2 5.49 175
03/29/2019 EOF Ecofibre Ltd 20 1 2.55 155
07/05/2019 IXC Invex Therapeutics Ltd 12 0.4 0.925 131
06/21/2019 VGI VGI Partners Ltd 75.0002 5.5 11.86 116
04/18/2019 NXS Next Science Ltd 35 1 2.02 102
08/22/2019 OPC OptiComm Ltd 42.3518 2 3.99 100
12/10/2019 AMX Aerometrex Ltd 25 1 1.895 90
07/11/2019 QFE QuickFee Ltd 13.5 0.2 0.37 85
12/06/2019 3DA Amaero International Ltd 8 0.2 0.35 75
06/06/2019 RLT Renergen Ltd 10 0.8 1.31 64
11/29/2019 CBR Carbon Revolution Ltd 90.1462 2.6 4.05 56
12/12/2019 OLL OpenLearning Ltd 8 0.2 0.305 52
07/30/2019 SZL Sezzle Inc 43.5714 1.22 1.8 48
12/09/2019 NUC Nuchev Ltd 48.6546 2.6 3.68 42
08/30/2019 IMR Imricor Medical Systems Inc 13 0.83 1.15 39
02/22/2019 MPH Mediland Pharm Ltd 12.5527 0.2 0.275 37
04/30/2019 PE1 Pengana Private Equity Trust 157.371 1.25 1.635 31
08/27/2019 APV Appsvillage stralia Ltd 5 0.2 0.26 30
05/07/2019 MRZ Mont Royal Resources Ltd 5 0.2 0.255 27
12/06/2019 TYR Tyro Payments Ltd 287.255 2.75 3.4 24
12/12/2019 MME MoneyMe Ltd 45 1.25 1.5 20
10/14/2019 HMC Home Consortium Ltd 325 3.35 3.92 17
11/08/2019 PWG Primewest Group Ltd 100 1 1.17 17
05/28/2019 IAP Investec stralia Property Fu 101.538 1.32 1.525 16
04/17/2019 RDY ReadyTech Holdings Ltd 50 1.51 1.74 15
12/18/2019 GRL Godolphin Resources Ltd 7.4805 0.2 0.22 10
12/23/2019 ICE iCetana Ltd 5 0.2 0.22 10
10/11/2019 MHH Magellan High Conviction Trust 861.814 1.5 1.645 10
10/16/2019 DTC Damstra Holdings Pty Ltd 49.3215 0.9 0.985 9
10/01/2019 MAD Mader Group Ltd 50 1 1.09 9
12/06/2019 ECF Elanor Commercial Property Fun 173.629 1.25 1.33 6
06/17/2019 RF1 Regal Investment Fund 281.778 2.5 2.63 5
08/16/2019 FCL Fineos Corp Holdings PLC-CDI 210.975 2.5 2.63 5
04/29/2019 MOT MCP Income Opportunities Trust 300 2 2.08 4
09/26/2019 PGG Partners Group Global Income F 550 2 2.06 3
05/14/2019 PCI Perpetual Credit Income Trust 440 1.1 1.13 3
11/21/2019 KKC KKR Credit Income Fund 925 2.5 2.49 0
12/20/2019 LME Limeade Inc 100 1.85 1.82 -2
12/17/2019 FFL Founders First Ltd 15.7809 0.5 0.48 -4
06/19/2019 WSP Whispir Ltd 47 1.6 1.5 -6
11/13/2019 VG8 VGI Partners Asian Investments 556.55 2.5 2.3 -8
12/11/2019 NTO Nitro Software Ltd 110.241 1.72 1.555 -10
06/14/2019 VOL Victory Offices Ltd 30 2 1.8 -10
12/06/2019 MIO Macarthur Minerals Ltd 5.0082 0.25 0.225 -10
02/14/2019 A1G African Gold Ltd 4.5 0.2 0.175 -13
10/31/2019 TDI 360 Capital Digital Infrastruc 65 2 1.7 -15
12/16/2019 OPY Openpay Group Ltd 50 1.6 1.3 -19
05/24/2019 TIP Teaminvest Private Group Ltd 3.9698 1 0.8 -20
06/06/2019 PKS PKS Holdings Ltd 16.13 0.2 0.16 -20
03/07/2019 CBY Canterbury Resources Ltd 6.1472 0.3 0.22 -27
05/10/2019 360 Life360 Inc 145.428 4.79 3.29 -31
12/11/2019 TGH Terragen Holdings Ltd 20 0.25 0.17 -32
05/23/2019 PWL Powerwrap Ltd 17.4319 0.35 0.21 -40
06/14/2019 2BE Tubi Pty Ltd 5.76 0.2 0.12 -40
06/11/2019 PGL Prospa Group Ltd 109.756 3.78 2.08 -45
11/07/2019 C Cronos stralia Ltd 20 0.5 0.22 -56
10/03/2019 TMG Trigg Mining Ltd 4.5 0.2 0.078 -61
02/19/2019 CLB Candy Club Holdings Ltd 5.024 0.2 0.069 -66

Emerald hoped to raise $6m-$8m with its initial public offering.

Now the cash is rolling in for its green, it’s all systems go.

“We’ve been going for a year and … have established four clinics across Australia for physical presences that translates to about nine consulting rooms,” Dr Winlo said.

“We have consultations in those rooms on most days of the week seeing patients who are referred to us for an evaluation for medicinal cannabis for a whole variety of conditions.”

Emerald’s clinicians use treatments on patients at facilities in New South Wales, Victoria and Western Australia and collect data on patient success.

The data includes the patient’s clinical response, any adverse reactions or events and drug interactions people might experience.

Legal cannabis treatments offer the patients hope and for some, real pain relief.

“There’s actually a whole suite of validated clinical assessments that we perform on the patients and the clinician guidance, which helps improve the body of evidence behind the appropriate use of these treatments,” Dr Winlo said.

“We believe in a de-identified form it will have high commercial value because it’ll help educate producers on which products can help them substantiate their claims of benefit.”

About 15 per cent of people trying out treatments in Emerald’s nine treatment rooms have cancer.

Another 60-70 per cent have chronic non-cancer conditions like multiple sclerosis, irritable bowel syndrome or osteoporotic pain.

The remaining 15-25 per cent have one of about 50 other conditions and use the treatments with a mix of results.

Emerald chairman Dr Stewart said in the company’s prospectus the company’s strategy was to “become the leading, independent operator of data-driven, patient-centric, specialist cannabinoid management clinics across Australia and the world”.

The company’s market capitalisation on listing will be about $37-$39m.

Emerald’s first day on the market is pencilled in for February 7.

 

Planned debuts

A number of other companies are hoping to list this year besides Emerald. Among them are six planning debuts in January and February.

READ: Here are 6 IPOs on the agenda for 2020

Company Proposed ASX code Proposed Listing Date Share Price Offer Size
ARMnet Ltd AR1 26 February 2020 $0.20 $11m
Cobre Ltd CBE 15 January 2020 $0.20 $10m
COSOL Ltd COS 24 January 2020 $0.20 $12m
Emerald Clinics Ltd EMD 7 February 2020 $0.20 $8m
Kaiser Reef Ltd KAU 27 February 2020 $0.20 $4.5m
Little Green Pharma Ltd LGP 7 February 2020 $0.45 $10m
Thedocyard Ltd TDY 14 February 2020 $0.20 $5m

Little Green Pharma (ASX:LGP) has already closed its book after targeting a $10m raise at 45c per share.

The local producer, which is likely to benefit from Western Australia’s move to cut red tape, expects to debut around February 7.

Some companies expect to open their offers this month, including digital financial services company ARMnet (ASX:AR1).

Brookes told Stockhead yesterday the company was waiting on ASX approval for its listing.

ARMnet is pursuing a growth and expansion strategy and hopes to raise $8.5m to $11m with up to 55 million shares on offer.

Gold explorer Kaiser Reef (ASX:KAU) has offered 22.5 million shares at 20c each to raise $4.5m.

The offer from Siberia Mining Corp and Hibernia Gold (later Moly Mines) founders Jonathan Downes and Adrian Byass opened on December 13.

READ: IPO Watch: Moly Mines duo pair up again for new gold IPO

Kaiser hopes to have a $6.639m market cap after listing, with the pair expected to tip in for what Downes told Stockhead was likely to be a tight register.

The company’s offer is due to close on February 7 ahead of a February 27 listing date.

Resources company Cobre (ASX:CBE) had hoped to list this week.

The company’s $10m offer of 50 million shares priced at 20c each was pencilled in to close on January 6.

Stockhead is seeking comment.