EndoCanna Health last month pledged to bring together two of the fastest growing sectors of healthcare: cannabis and genetic testing for consumers.
The company sells tests that it says can help consumers find the ideal marijuana variety for their genetic makeup. Since she started doing business in August, EndoCanna claims to have sold a few hundred of her kits at $ 199. That's enough to get bankers to hit on an initial public offering, said managing director Len May in an interview with Bloomberg.
"We have had four firm offers from companies that want to guide us through the IPO process," said May. An expression of interest came last week, he said.
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"You have two groups of people right now: the big financial players coming in and who do not know anything about cannabis, and you have those gray market guys who have been in space for a long time," said May. "What's fun for me is that these stoner players sitting at the Fortune 500 table are there. Someone will make a movie one day.
After seeing a handful of cannabis-related actions for medical and recreational purposes hit the road last week, with a market value of about $ 17 billion, May has a message for the market: relax .
"I went through the dot com crash and burned it. I've watched the real estate market crash and burns, "said May. "When you really look at these companies, when you actually look at their financial statements, they are extremely overvalued."
EndoCanna makes no health claims about its products, which could attract the attention of drug regulatory agencies. Instead, the Los Angeles-based company helps consumers use a genetic screen to determine what types of marijuana are best for them. With the slogan "Cannabis is personal," he says he can use a person's genetics to better choose marijuana to manage pain, avoid anxiety or simply have a more enjoyable recreational experience.
A person carrying the CYP2C9 gene, for example, might have difficulty metabolizing the active ingredient of cannabis and therefore should stay away from edible products, the company said.
According to Mr. May, the company focuses on developing its business, including using the company's test kits in clinical trials in Australia.
Meanwhile, May, a veteran of the pot industry for 26 years, advises Wall Street: "Invest in companies that have a fair price / earnings ratio, good financials and that are not smoke" .
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