Dragonfly Biosciences (ASX: DRF) is hoping for early yule-tide blessings when it officially lists on the main board on Christmas Eve.
The organic vertically integrated seed-to-shelf cannabidiol (CBD) company’s 24 December listing coincides with a $10m initial public offering.
The company is issuing 50m shares at an issue price of $0.20 per share and is targeting a market cap of around $94m.
Funds are expected to be used to help push the company’s truly organic cannabidiol products – which trade under the Dragonfly CBD brand - into the Asia-Pacific region.
Earlier this year (May) Dragonfly (formerly Siburan Resources) acquired 100% of the issued capital of UK-based Dragonfly which owns an entire value chain, from their certified organic farms, extraction facilities and laboratories used for producing premium CBD products.
While the brand remains unknown locally (for now), Dragonfly CBD products – which can be found across UK-based grocery and specialty chains - were voted Best CBD Product in 2020 by Boots UK.
It’s understood that the company is focused on organic and the high-quality production of Tetrahydrocannabinol (THC) free products. To the uninitiated, THC is the main psychoactive compound in cannabis producing that ‘high’ sensation.
Once there is more education around how CBD can help people then consumers, CEO Regan Saveall wants to ensure they get a pure product and know where it has come from.
As a result, Dragonfly has decided to grow, extract, and formulate its products.
“When talking to retailers, regulatory bodies or customers we can show at every stage of the process we are using the best quality and practices,” notes Saveall.
“We provide a certificate of analysis with every batch of product we make which really sets a standard in terms of ensuring it is THC free and has the right levels of CBD."
In addition to a planned Asia-Pacific expansion, what attracted the company to an ASX-listing, adds Saveall is a planned expanding its crops to Australia.
“We would be looking to also grow in Australia which would give us a full-year supply…which would be a good way to essentially double our capacity,” says Saveall.
“We already have special access scheme approval by the TGA for two of our products and are working to get full approval."
Dragonfly distributes its products through ASX-listed international medicinal cannabis distributor Health House International (ASX: HHI).
The company has also a partnership with Australian company eCargo Holdings to distribute its products in Asia.
Get the latest news and media direct to your inbox