,
11 tweets,
3 min read
Read on Twitter
Ecofibre $EOF listing shortly at 11am. Have a starting position (scaled back 50%). Not sure how useful this will be - expect to be pretty illiquid given only $20M raised, new shares representing just 6% of total, and something like 65% of previous shares escrowed for 2 years /1
$EOF But quick thoughts anyway. The comparison will be inevitably made with $EXL and there are some similarities - though EOF brings exposure to hemp-based textiles, and doesn’t (yet) have a focus on medicinal cannabis /2
$EOF Ananda Health: hemp-derived CBD-based nutraceutical products and topical creams etc for humans & pets (primarily in the US). $12M sales for Dec-18 half (compared with ~$4M for Jun-18 half and $1M for Dec-17 half), so growing fast and already profitable /3 
$EOF Ananda Food: vertically integrated manufacturer and distributor of hemp food products in Australia (potentially Asia later). Only $1M of sales for Dec-18 half, not profitable just yet. Early days here with the market only legalised in late 2017 /4
$EOF Hemp Black: focus on developing hemp-based textiles & composite materials, in partnership with Thomas Jefferson University. Target areas include industrial fabrics & materials and wound dressings amongst others. HB is pre revenue, good chunk of IPO $ will be deployed here /5
$EOF Now to valuation. Including escrowed shares, market cap is $309M at $1 IPO price - a little rich based on historical numbers (below). Assuming continuing strong growth in current half, *should* be profitable for FY19. Prospectus contains no forecasts /6
$EOF No forecasts not ideal but maybe not *that* surprising given growth trajectory. Loathe to make lazy comparisons, but some will note $EXL market cap of ~$570M and full year FY18 (Dec Y/E) revenue of $37M /7
$EOF and compare to *potential* FY19F EOF (June Y/E) revenue of $30-$40M (double recent half + some growth). You can see the US nutraceuticals/Aussie food aspect has strong similarities with $EXL /8
$EOF **Definitely a lazy comparison and ignores differences between the two (and optimism a US national pharmacy distribution deal is in the works for $EXL). Point is that at this valuation we are looking 1-2 years out /9
$EOF Per prospectus, AFR article this month, and top 20 released yesterday, Chairman Lambert owns 24%, Founder 18%, Perennial Value (!) and IFM already on the register (within the 41% below), Caledonia CIO Vicars holds 10%. CEO 4% currently. Me: 0.006% (whoopee) /10
@threadreaderapp unroll!
