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Emerald Clinics, a company that specialises in cannabinoid treatments, has launched a $6-8 million IPO ahead of a launch on the ASX next month.
The company has four clinics in Sydney, Melbourne, Perth and the Northern Rivers region of NSW, providing safe access to cannabinoid medicines for qualified patients in collaboration with referring doctors.
In addition to providing medicinal cannabis to those who require the drug to treat ailments, Emerald's cannabis specialists capture anonymous, trial-grade data from the patients they serve.
The company hopes its work will improve the standards of clinical evidence which will in turn improve access to quality medicinal cannabis products.
Since opening its first clinic in December 2018 Emerald has grown its patients base to approximately 1,000.
The group intends to issue 30-40 million new shares at $0.20 per share, giving it a market capitalisation of $36.8-38.8 million upon listing.
Once the IPO is complete Emerald estimates it will list on the ASX in February 2020 under the ticker EMD.
Emerald managing director and CEO Dr Michael Winlo (pictured centre) says there is a perfect storm in the medicinal cannabis sector, making now the ideal time to launch on the ASX.
"In Australia and foreign markets a lack of quality clinical evidence for medicinal cannabis means there is apprehension amongst regulators, health insurers and clinicians to register, pay and prescribe," says Winlo.
"Further to this, regulators are now taking action on unsubstantiated claims being made by some licenced producers."
"The acceptance of real-world evidence, as opposed to a traditional market authorisation pathway involving clinical trials, is gaining significant momentum in jurisdictions through Europe and North America with substantial investment being made by big pharma."
"Emerald is well positioned to be a major player in delivering such real-world evidence for cannabinoid treatments with the scope to expend this into other unconventional drugs."
Winlo is the former CEO of Linear Clinical Research and previously has worked in Silicon Valley for Palantir.
Additionally, the company's board includes big names from the general pharmaceutical world and the cannabis industry.
The group is chaired by Dr Stewart Washer, who is also the chairman of regenerative medicine company Orthocell (ASX: OCC) and stem cell technology group Cynata Therapeutics (ASX: CYP).
Washer and Winlo are joined by non-executive director and serial entrepreneur Matt Callahan.
Callahan is the co-founder of medicinal cannabis company Botanix Pharmaceuticals (ASX: BOT), as well as Orthocell and iCeutica Inc.
The company completed a $2.5 million capital raise in February 2019 to support its ongoing roll-out program of its clinics nationally.
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