On behalf of the Directors, it is my pleasure to invite you to consider becoming a shareholder in Ecofibre Limited.
The industrial hemp (hemp) industry has grown rapidly in recent years.
Consumers are increasingly aware of its many benefits, and regulators have responded by making hemp products
more accessible. Consumption of hemp foods became legal in Australia in November 2017, and the legality of hemp
in the United States was confirmed in December 2018 when the 2018 Farm Bill was signed into law.
Ecofibre is a provider of hemp products in the United States and Australia.
The Company has experience in breeding and growing hemp, and this knowledge has been commercialised over the
last two years. Sales have grown rapidly and margins in our businesses are strong.
In the United States, the Company produces nutraceutical products for human and pet consumption, as well as topical
creams and salves (Ananda Health). This business is now at economic scale, profitable and growing rapidly.
Hemp food products are grown and manufactured in Australia, including protein powders, dehulled hemp seed and
hemp oil (Ananda Food). Our food manufacturing facility was commissioned in November 2018 and growing areas
have been increased significantly for existing and potential future demand.
The Company is developing innovative hemp-based products in textiles and composite materials (Hemp Black) in
partnership with Thomas Jefferson University (TJU) in the United States.
Our value proposition to customers is built on strong brands, quality products and 100% compliance.
The Company owns or controls key parts of the value chain in each business, from breeding, growing and production
to sales and marketing. We sell directly to customers, and also have strong distribution relationships in the United
States and Australia.
Our priority is to continue growing sales and profits and to increase our working capital to take advantage of
expansion opportunities, whilst maximising shareholder value.
Ecofibre is seeking a listing to accelerate the commercialisation of Hemp Black, and to provide working capital for the
accelerated future growth of Ananda Food. The initial public offering (IPO) will provide a listed market for Existing
Shareholders and provide an opportunity for new investors to participate in the hemp industry by becoming
shareholders in Ecofibre.
I encourage you to read the prospectus carefully in its entirety and consult with your professional advisers before
deciding whether to invest in the Company. You should particularly consider the Risks described in Section 5.
On behalf of the directors I look forward to welcoming you as a shareholder of Ecofibre.