IPO Alert: Cannibble Food Stock (PLCN.CN)

challande

Written By: Marc Challande

Francophone

Published : March 4th, 2022

Since this Thursday, you can add Cannibble Food Stock (PLCN.CN) to your portfolio. Whether you aim to diversify or add another cannabis company to your holdings, Cannibble Food will be a good opportunity before the stock gets more eyes on it. PLCN is a cannabis-infused food & beverages company developing premixed foods, beverages, nutritional supplements, and spices enhanced with Cannabidiol (CBD) with a controlled and measured dosage for the recreational market. Cannibble’s food items include drinks, cake mixes & desserts, spices, and popcorn.

cbd play

A Diverse Range of Products

Cannibble is an Israeli Food tech Company developing & manufacturing powder mix food products enhanced with Cannabinoids. They have developed propriety formulas to enhance powder-based edibles with active Cannabinoids. They are creating a new “Canna-food” segment for recreational markets. The company has raised approximately $4M and has commercial sales in the US, including a major US retail chain. 

The company has excellent value. With 100 Different formulations already developed and ready to introduce to the market, they will satisfy many customers.

Cannibble’s line of products is marketed under its brand name “The Pelicann” and offers five categories of products: 

  • CannaShakes TM: Powders for making shakes, cold or hot beverages in different favors such as Vanilla, Cookies & Cream, Salted Caramel, Chai Latte, Etc.
  • CannaShakes Sports TM: Hemp protein shake mixes with CBD, which all professional and amateur athletes can enjoy, just like any other protein shake.
  • CannaMix TM: Powders for microwave or oven making instant, muffins, cupcakes, pancakes, etc. with or without hemp protein
  • CannaSpices TM: Pure or blended spices for Pizza, Steaks, Chicken, Salads, and more.
  • CannaPop TM: CannaPop is a microwave instant popcorn mix with deferent favors ready 2-3 minutes.

A Big Market Opportunity

The cannabis sector keeps growing and offers more opportunities for companies to dive in. For Cannibble and the companies’ industry, the CBD-infused Products Market is expected to reach $216.8 billion by 2028, at a CAGR (Compound Annual Growth Rate) of 45.6% during the forecast period, 2021-2028. This CAGR might be the most significant growth compared to other sectors. This positive data will bring more exposure and more growth opportunities to companies.

In an article released by Yahoo Finance about US Hemp CBD Market:

  • U.S. hemp-derived CBD market will reach $5.3 billion in retail sales in 2021. This would imply 15% growth over 2020 sales of $4.6 billion.
  • The market for CBD products is projected to grow into a $20 billion market by 2024—and the growth of that is expected to primarily come from beverages and edibles, according to data from BDS Analytics and ArcView Market Research.
  • Drinks and gummies are expected to be the fastest-growing product types in 2021, with 71% and 44% value growth, respectively.

Some companies are already well implemented, and Cannibble can reach them. Alkaline Water ($112M market cap) and BioHarvest ($158M) are two good examples of what market cap Cannibble can target.

cannibble food stock

“Our public listing in Canada on the CSE will enable our team to execute upon many strategic and beneficial initiatives for Cannibble and our shareholders moving forward.”

Yoav Bar Joseph, chief executive officer of Cannibble.

Share Structure

The company has excellent fundamentals. Founders own 16.2M shares, representing 74.7% of the float (21.7M issued shares). Private investors own the rest. An interesting piece of data is the exercise price for the warrants. A trigger at $1.4 represents a 50.5% upside compared to the current stock price. About dilution, the stock won’t be much exposed. With only 2.5M warrants, the company has 24M shares fully diluted. This low number will mean we can witness considerable variations in the stock price. It will be interesting to see if the company will keep this share structure over time or if the management board will do private placements to increase their cash positions and dilute the share structure.

The stock is currently traded at $0.93 for a  market cap of $23M. More exposure, more products, more volume will significantly increase the market cap and, as a result, the stock price.

We might see low volume for some time. Because of the market uncertainties with the tensions between Russia and the rest of the world, many companies saw their daily volumes decreasing. There are three orders at $0.98, $1.03, $1.08, all with a size of 5,000 shares. To move the share price, investors will have to buy on the market.

Regarding the fundamentals, it will be essential to look at the subsequent earnings to see how healthy the company is, the sales, cash in hands, expenses are… The company is just newly publicly traded; we can’t find SEDAR filings yet.

Bottom Line

Cannibble has excellent fundamentals, the company is involved in a market with a high growth prospect, and PLCN has good products. The company is gathering all investors’ criteria. Besides, we might wait to see more volume as the markets are uncertain, and investors will analyze how the share price will behave. Should PLCN be part of your watchlist? Yes. Should PLCN be part of your holdings? Even more. The future is bright for the company, and the company will bloom your portfolio.

This article solely expresses the opinion of the writer which might be disagreeing with the other writers of Money,eh?. Moreover, the writer isn’t involved in PLCN, and doesn’t own shares of the Company.

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