EPISODE #107 Listing A Cannabis Company On The Stock Market with Dr. Jason Mitchell, CEO and Co-Founder of Hemp Fusion - Show Notes

This week we’re joined by Dr. Jason Mitchell, CEO and Co-Founder of Hemp Fusion - leading US hemp-based CBD company who have recently listed on the Toronto Stock Exchange.

In this episode we get to know the brand, explore the process of being listed, and examine the wide range of benefits and opportunities an IPO can bring.

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Episode Summary

• Jason is a board-certified Naturopathic doctor and comes from an entrepreneurial family who traded within the natural products industry for decades.
• Jason’s first job in the industry was for a vitamin company. By the time he left in 2013, he had become their Chief Scientific Officer and had developed over 13 products that were brought to market. He also led the company through an acquisition in 2006.
• In 2011 Jason was diagnosed with Ulcerative Colitis, an inflammatory bowel disease that has several debilitating side effects.
• The suffering he experienced with the disease inspires him to do what he is doing today.
• Jason believes in ‘conscious capitalism’ which he defines as a successful and profitable business, which is driven by a ‘why’ and does good for a number of people.
• As a youth and young adult, Jason was strictly anti-cannabis and saw it as a gateway drug. Growing up in the ’80s saw the villainization of the plant in multiple ways, influencing Jason’s opinion of it.
• Hemp Fusion Inc. (founded in 2015) is a USA-based wellness company with a fully owned subsidiary - Probulin Probiotics (founded in 2013).
• In the summer of 2019, the companies were brought together after an injection of capital. Their 42 unique SKU’s which alleviate stress, sleep, and pain are now found in over 4000 retail locations and include FDA-registered over-the-counter products for eczema and acne relief.
• One of their first products was Hemp Fusion Digestive, which combined the technology used for probiotics with CBD and terpenes.
• Probulin is currently operating not only in the USA, but in Ireland, Mexico, South Korea, and the UAE.
• Hemp Fusion was recently listed on the TSX (Toronto Stock Exchange) who is the leading exchange for cannabis stocks globally. They were the first US-based company selling CBD products to directly list on the TSX.
• Jason describes listing as a very arduous task, which requires you to provide forensically detailed company accounts. He describes it as a ‘painful process’ which is definitely worth it.
• Benefits of listing on the exchange include access to capital, exposure to a wide audience, and accountability.
• Hemp Fusion is one of the most well capitalised CBD companies in the industry, which allows them to be structurally nimble and effective.
• Although there are many very large companies within the CBD and cannabis space, there is no clear market leader - with the largest companies only having 2% market share.
• Having already established credible financial audits, it took the company the best part of a year to go through the process of listing.
• Jason advises that other companies who are looking to list should hire an experienced team familiar with public markets to streamline the process and reduce the number of mistakes.

Quotables

‘There has to be a ‘why’ that's so great, no matter what obstacle in the way you are still willing to fight through it.’ 05:30

‘Unfortunately, cash is king...you have to be able to afford to do what you know you need to do to become successful. 24:00

Resources

Follow Dr. Jason Mitchell on LinkedIn: https://www.dhirubhai.net/in/jason-mitchell-n-d/

Follow Hemp Fusion on LinkedIn: https://www.dhirubhai.net/company/metacan-inc./

Follow Hemp Fusion on Twitter: https://twitter.com/hempfusion

Hemp Fusion’s Website: https://www.hempfusion.com/

About Me

I'm Anuj Desai - a commercial advisor, lawyer and founder of Canverse - a commercial and legal consultancy helping founders, entrepreneurs and businesses navigate the emerging cannabis industry.

Please follow The Cannabis Conversation to keep up to date with news and insights from the industry, and get in touch at [email protected] to discuss how I can help your business move forward in the cannabis sector!

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