The Hydroponics Company

Take5 with OnMarket: Chairman, Alan Beasley and Canndeo CEO, Andrew Beehag answer 5 questions about The Hydroponics Company and the IPO (6:27min)

Fixed Priced IPOType of Offer
14 Mar 17Offer Open
17 Mar 17Pay By
$0.20Price
$5-8 millionSize of Offer
$2,000Minimum Bid
Gleneagle, RedleafLead Manager
111
1939

Overview

The offer has now closed due to overwhelming demand.​ Any bids received post 2pm (AEST) Tuesday 14th March may not be accepted.

The Hydroponics Company Limited (ASX: THC) is a diversified, vertically-integrated company covering a wide range of equipment for cannabis cultivation and processing, large-scale hydroponic greenhouse design and construction, and the development and delivery of medicinal cannabis.

The company has entered into various agreements to acquire and/or collaborate with businesses aligned to them. Together these companies have established strong networks in the hydroponics sector.  The Company’s manufacture and wholesale distribution unit holds 9 established trademarks across a range of product categories, and delivers over 600 products to their customers.

The Company has entered a Share Purchase Agreement to acquire Canndeo Ltd (Canndeo), an Australian business offshoot of Agri Fibre Industries with over 17 years’ experience in the breeding, variety selection and growth management of Cannabis sativa, which will be applied to the production of medicinal cannabis (Canndeo-SPA). On 27 February 2017, Canndeo submitted a Research Licence Application under the Narcotic Drugs Act 1967 to conduct Cannabis research and enable the cultivation of cannabis.

The Australian government announced on 22 February 2017, that medicinal cannabis may be imported and prescribed by doctors. Based on clinical, research and medical literature there are indications that cannabis has therapeutics benefits for eating disorders, pain, multiple sclerosis and other neurological conditions, Parkinson’s disease, Alzheimer’s, epilepsy, cancer and other conditions.

The Company has also acquired rights to distribute innovative pumps and water filtration systems and has formed profit share arrangements with designers and constructors of large-scale hydroponic greenhouses.

Revenue will be generated through the continued sale of equipment and other products for the indoor and urban horticultural industry, predominantly for cultivation and processing of cannabis, successfully developing medicinal cannabis for commercialisation and the design and construction of hydroponic greenhouses.

The Hydroponics Company is raising $5 -$8 million. They are also offering 1 Option for every two shares subscribed. Each Option is exercisable at $0.40 at any time before 31 December 2019. On listing, the expected market capitalisation at IPO will be between $16-$19 million. 

As set out in Section 5 of the prospectus, The Hydroponics company is subject to a range of risks, including but not limited to competition, laws and regulation, market conditions, reliable suppliers and disruption to manufacturing facilities.

Multiple bids under the same investment profile will be treated as a single bid.

 

Section 734(6) disclosure: The issuer of the securities is The Hydroponics Company Limited ACN 614 508 039. The securities to be issued are ordinary shares. The disclosure document for the offer can be obtained by clicking on the link above. The offers of the securities are made in, or accompanied by, a copy of the disclosure document. Investors should consider the disclosure document in deciding whether to acquire the securities. Anyone who wants to acquire the securities will need to complete the application form that will be in or will accompany the disclosure document (which can be done via the electronic application form which will become available by clicking the bid button above).​

The company reserves the right to close the offer early.

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