Tasmanian hemp company 13 Seeds is hoping to make its ASX debut this month following the launch of a $6 million initial public offering.
The three-year old nutraceutical company has offered up to 30 million shares at $0.20 each to help fund its work in the manufacture and sale of wholesale products using high-quality hemp seeds purchased from local growers.
Founded in 2016, 13 Seeds sources the homegrown hemp for processing by third parties and distributes its products online via a national network.
The company’s range of 15 gourmet foods and 10 skincare products generated $230,000 revenue in the 2019 financial year.
Proceeds from the offer will be combined with 13 Seeds’ existing cash at hand of $575,000 and put towards a range of business activities including sales and marketing, plant and equipment, online distribution set-up costs and new product development.
If the offering is successful, 13 Seeds’ ticker code will be 13S and the company would have a market capitalisation of approximately $15 million on listing.
13 Seeds was founded on the premise that certain health benefits can be gained from including hemp and hemp seed-based products into a person’s daily diet.
Hemp seeds are considered to be a “complete protein” as they contain essential fatty acids and amino acids required by the human body for optimal health.
The oil produced by pressing hemp seeds contains lipids which closely mimic the lipids found in human skin and are important to maintaining moisture and hydration.
Hemp seeds and oil are believed to contain anti-inflammatory properties which can be used orally and topically, allowing for a variety of food, nutraceutical and skincare applications.
Hemp seed oil also contains an optimal proportion of Omega-3 which is valuable to brain function and heart health.
13 Seeds’ first hemp product range included facial serum, body wash, day cream renewal, night creams toners and cleansers.
After the Australian Government legalised hemp for human consumption in November 2017, the company launched a gourmet food range which includes hemp hearts, oils, porridge, muesli, chocolate and honey.
13 Seeds said there is a growing demand for hemp food products due to rising consumer awareness of the benefits of hemp as a “superfood”.
Hemp is derived from the same genus as marijuana; however, it contains only trace amounts (less than 0.3%) of the psychoactive ingredient tetrahydrocannabinol (or THC).