Hempacco, which manufactures nicotine-free cigarettes made from hemp, announced terms for its IPO on Thursday. It also disclosed financials for the three months ended March 31, 2022.
The San Diego, CA-based company plans to raise $15 million by offering 3 million shares at a price range of $4 to $6. At the midpoint of the proposed range, Hempacco would command a market value of $115 million.
The company produces nicotine-free and tobacco-free smokable hemp and herb products for its in-house brand of hemp-based cigarettes, The Real Stuff Smokables, as well as hemp-based cigarettes for private label customers in the cannabis and tobacco alternatives industries. Launched in 2020, its smokable CBD brands are currently sold in over 200 retail locations in San Diego, California in addition to 600 kiosk vending machines. Hempacco's cigarette production facility has the capacity to produce up to 30 million cigarettes monthly with in-house processing, packing, and shipping capabilities.
Hempacco was founded in 2019 and booked $2 million in revenue for the 12 months ended March 31, 2022. It plans to list on the Nasdaq under the symbol HPCO. Boustead Securities is the sole bookrunner on the deal.
