Emerald gets its IPO up? Yay! Pic: Getty
IPO Watch: Cannabis play Emerald closes the book after its green gems attract the dollars
IPO Watch
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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.
