Slang Worldwide Inc (CSE: SLNG) listed today on the Canadian Stock Exchange at a share price of C$1.50. According to CSE Data listed on their website, the newly public company ended today’s trading session up 33 percent, around C$1.99.
The Toronto-based company based led by cannabis product entrepreneurs Peter Miller and Bill Levy are focused on expanding their portfolio of cannabis products such as vape pens, beverages, edibles and more. Before the trading session, the company’s suggested market value was around $377 million, with their products sold across 2600 retail stores in 10 U.S. states and five continents. The duo also previously cofounded Mettrum Health Corp, a licensed cannabis producer which was sold to Canopy back in 2017 for $430 million.
According to their financial documents, the company’s vaporizer brand sold over $187 million worth of products in 2018. Despite this, the business still logged losses of C$23.6 million throughout the nine months of last year ending in September. They ended up raising a further C$66 million in September, meaning to use the funds to help expand into Latin America and Europe.
“One of the things that’s different about us, is we’re not investing in expensive agricultural infrastructure like a lot of the peer group of publicly traded companies,” said Levy, as reported by Yahoo Finance. “Ultimately by not farming and not retailing we can focus on extraction through the wholesale of finished goods and we’re less exposed to commodity price swings and we’re not going to be in competition with our customers who are the retailers,” Miller added. “Farming is also done best at a relatively small scale.”
Canopy Growth Corporation (TSX: WEED)(NYSE: CGC) has a vested stake in Slang, backing the company through a complex financial arrangement complying with Toronto Stock Exchange’s policies concerning businesses that operate in states where cannabis is federally illegal. Additionally, Canopy has the option of acquiring an additional 20 percent of Slang should the U.S. legalize cannabis in the future.
As the new cannabis IPO of the week, traders are keeping their eyes out for price movements for this stock, which are expected to remain volatile for the rest of the week.
SLANG Worldwide Company Profile
SLANG is a Toronto-based company consolidating brands along the regulated supply chain in the global cannabis market—building a world-class portfolio of assets. The Company is focused on acquiring and developing market-proven, regional brands, as well as creating new brands to meet the needs of cannabis consumers worldwide. – Slang Worldwide
Canopy Growth Company Profile
Canopy Growth is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. Canopy Growth offers medically approved vaporizers through the Company’s subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time. The Company has operations in over a dozen countries across five continents. – Canopy Growth