HT Naturals (Or Hemptown Naturals), a company that raised funding on Title3Funds, has filed an S-1 with the Securities and Exchange Commission (SEC) indicating its intent to pursue an initial public offering (IPO). Title3Funds is a regulated Funding Portal.
HT Naturals, now doing business as Functional Brands, completed a Reg CF offering launched in 2022. The company sought to raise the maximum amount under the exemption of $5 million with a minimum hurdle of $100,000. HT Naturals raised equity capital at a pre-money valuation of $56 million. The company eventually raised over $3 million, backed by over 1800 investors who participated in the offering on TitleeFunds. The offering document is available here.
In a statement shared to investors posted in June, the company had this to say:
“In relation to your investment, we are truly delighted to announce we have officially filed the S-1 with the SEC for the companys operating subsidiary, Functional Brands Inc (formerly, HT Naturals Inc.) The SEC Form S-1 is the initial registration form for new securities required by the SEC for public companies that are based in the U.S. Any security that meets the criteria must have an S-1 filing before shares can be listed on a national exchange, such as the New York Stock Exchange. Companies usually file SEC Form S-1 in anticipation of their initial public offering (IPO). Form S-1 requires companies to provide information on the planned use of capital proceeds, detail the current business model and competition and provide a brief prospectus of the planned security itself, offering price methodology and any dilution that will occur to other listed securities.”
The company said that once the S-1 is approved by the SEC, it will commence a road show to promote the offering to investors.
HT Naturals’ marquee product is smokable hemp cigarettes pitched as tobacco cigarette replacements that do not include nicotine or some of the other harmful substances typically found in cigarettes. The company also offers CBG/CBD products that include minimal THC. The company also has other brands, like Kirkman – a supplement provider, with others said to be in the pipeline. If marijuana (with THC) is ever legalized nationally, HT Naturals says it will be well positioned to capture market share with its already established brand. The investor deck is viewable here.
The company reported top-line revenue of $10.4 million in 2020.
While the S-1 is not yet live on the SEC website, once it is posted, it will include any and all information you will need if you are interested in the company and what it anticipates for its future performance.
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