HempFusion Wellness Inc (TSX:CBD.U), a top US health and wellness CBD company, is making an exciting debut Wednesday on the big board in Toronto. The Denver, Colorado-based company has attracted strong investor interest as it has been firing on all cylinders.
The company enjoys high visibility as its family of brands — HempFusion, Probulin Probiotics, Biome Research, and HF Labs — are widely distributed to around 4,000 retailers spread across all 50 states in the US and select international locations.
In addition, HempFusion’s wholly owned subsidiary Probulin Probiotics, is one of the fastest-growing probiotics companies in the United States, according to data technology company SPINS. Since gut health is the next big wellness trend Probulin Probiotics is poised for high-octane growth. It is perfectly positioned to capitalize on consumer trends and what Millennials want out of their wellness journey.
HempFusion’s diverse product portfolio has 46 SKUs including CBD capsules to help with sleep, energy and stress, CBD liquid tinctures, an over-the-counter drug-listed topical line for sports pain relief, eczema, acne and more. HempFusion sees itself as a serious R&D company so it is not surprising that it has nearly 30 products under development.
Proactive sat down with HempFusion co-founder and CEO Jason Mitchell, a naturopathic doctor, to learn more about the company’s high-growth global business and plans to scale operations both domestically and internationally.
Dr Michell has considerable street cred as he was the Chief Science Officer of a leading vitamin company and in the process, designed and launched over 300 dietary supplements in the market.
How does it feel to be the first US-based CBD company to list directly on the big board in Toronto?
It is an incredibly exciting time for HempFusion, to list on the TSX senior board, which is known globally as the premier exchange for hemp and cannabis companies. It is a tremendous honour. We have been working towards this goal for some time now.
How much funds do you hope to raise through the IPO and how will the IPO help HempFusion to scale its operations?
We have announced a US$17,000,000 IPO raise and pending final closing procedures, this capital will add to our already significant treasury, which, we believe is currently the second-largest cash position in the sector. This capital will help us execute on our strategic business plan in 2021 and beyond by bolstering marketing initiatives, advancing product R&D, increasing distribution and expanding our eCommerce operations.
Since there are hundreds of CBD products on the market, how does HemFusion's health and wellness products differ?
HempFusion from inception has focused on regulatory compliance and sourcing best in class raw materials for its products. Whether that is starting with DNA verified industrial hemp, offering USDA Organic products where applicable and providing premium delivery methods like our MAKtrek 3-D system for our wholly-owned Probulin Probiotics line that ensures more probiotics arrive alive. We are also one of a select few CBD companies to offer FDA-Listed OTC Topical Products. Additionally, we currently distribute our products across 4,000 retailers in 50 states.
Can you talk about HemFusion's growing portfolio of brands and if you will be adding new products this year?
HempFusion Wellness owns a portfolio of brands including HempFusion, Biome Research, HF Labs and a wholly-owned subsidiary Probulin Probiotics, which is one of the fastest-growing probiotics brands in the United States according to SPINS data.
Please tell us about your marketing strategy. Does your target audience find you online?
We have a multi-channel marketing strategy that has us targeting our existing stronghold in the natural products channel and expanding further into convenience, food and drug mass market (big box), doctor-practitioner and eCommerce. Our audience can definitely find us online at www.hempfusion.com. We are continuing to build out our influencer and ambassador program and are excited for what is to come in 2021. We are currently the third most recognized CBD brand in the United States according to Brightfield Group.
Fresh out of college, you started building a vitamin company and you also have expertise as a neuropathic doctor. Can you talk about your background and how it nudged you towards starting HempFusion?
Honestly, it is was quite personal. In 2011, I fell ill with a disease that was very debilitating. To be clear HempFusion nor Probulin products cured me. These products and companies did not even exist yet. I had to have traditional medical intervention. But, going through this inspired me to start my first company Probulin which is now a top Probiotic brand in the US, according to SPINS.
From there I met my co-founding partners of HempFusion Ian, Andrew and Ryan and we began to build the brand brick by brick. These two companies' products are designed to support very specific needs for consumers. We merged the company during the summer of 2019, and I guess the rest as they say is history.
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