Maverick Lifestyle, an unprofitable maker of hemp-based cigarettes, gummies and related cannabinoid products based in eastern North Carolina, increased the number of shares in its upcoming initial public offering.
The Stantonsburg-based company plans to raise $6 million by offering 1.2 million shares at prices from $4.50 to $5, according to a recent report by Renaissance Capital, an investment adviser specializing in IPO research and management. Maverick previously planned to offer 800,000 shares from $4.50 to $5.50.
At the midpoint of the revised range, Maverick, planning to trade on the Nasdaq under the symbol MVRK, will raise 45% more in proceeds than previously anticipated and achieve a fully diluted market value of $55 million, Renaissance said. It reported Maverick sales of $3 million in the 12 months ended June 30.
Maverick makes and sells hemp-derived cannabinoid products, according to a securities filing. Cannabis refers to all products derived from the plant Cannabis sativa. Unlike Maverick’s products, marijuana comes from parts of the plant that contain substantial amounts of tetrahydrocannabinol (THC).
Maverick said its offerings include “pre rolled hemp joints and hemp cigarettes, hemp cigarillos, blunts, disposable vapes, gummies, and puff ball edibles.”
“Our goal is to provide choice, affordability, and a legal smoking experience for both existing tobacco and marijuana consumers and new hemp smokers as a preferred adult-use alternative to tobacco products and expensive, inaccessible cannabis consumption,” Maverick said in the filing.
The company warned to potential investors that it “has a limited operating history” since its formation in March 2022.
“We expect to continue to incur net losses for the foreseeable future and we may not achieve or maintain profitability in the future,” the filing said, reporting net losses of $1.8 million for the year ended Dec. 31, 2023.
At that time, the company had accumulated deficit of approximately $7.7 million, and working capital of approximately $527,000. “As a result, our independent registered public accounting firm has expressed substantial doubt as to our ability to continue as a going concern,” the filing said.
Stantonsburg is a town of about 750 residents in southeastern Wilson County.
Maverick Lifestyle, an unprofitable maker of hemp-based cigarettes, gummies and related cannabinoid products based in eastern North Carolina, increased the number of shares in its upcoming initial public offering. Read More