Barry Lambert seeks funding for hemp firm Ecofibre

Rich lister Barry Lambert’s industrial hemp firm Ecofibre hopes to raise up to $20m from investors ahead of a planned float.

Barry Lambert has campaigned in favour of medicinal cannabis. Pic: James Croucher

Rich lister Barry Lambert’s industrial hemp company Ecofibre will seek $15 million to $20 million from investors after lodging a prospectus to float on the ASX by the end of March.

Mr Lambert, the founder of wealth management company Countplus and a major Commonwealth Bank shareholder, will emerge with a stake worth about $72 million in what would be a company with market capitalisation of up to $309 million.

Ecofibre is a provider of hemp products in the United States, where it is growing hemp that it supplies to be sold as food and via pharmacies, and in Australia, where Mr Lambert has poured at least $10 million into his fight for medicinal cannabis.

He donated $34 million to establish the Lambert Initiative for Cannaboid Therapeutics at the University of Sydney after administering hemp to stop the seizures being suffered by granddaughter Katelyn, who has a rare form of epilepsy called Dravel Syndrome.

Ecofibre intends to use the funds it raises to fund the commercialisation of its Hemp Black fibre technologies, used in clothing and other textiles, and fund the design and construction of new facilities in Kentucky, as well as providing additional working capital.

The company said it lost about $8.7 million in the 2018 financial year, but has made a net loss of $191,000 from $13.3 million revenue in the six months to December 31.

The offer for Ecofibre shares opens on February 18 and the company expects its shares to be trading on the ASX by March 29.