Marijuana Vape-Tech Company Doing Business With Celebs Announces $12.3M Public Share Offering

Ispire Technology Inc. (NASDAQ:ISPR), a maker of e-cigarettes and cannabis vaping products, announced on Friday the pricing of a public offering of 2.05 million shares of common stock for $6 per share for gross proceeds of $12.3 million.

The Los Angeles-based company said in a press release the closing of the offering is expected to take place on or about Tuesday, March 26.

Ispire said it plans to use the net proceeds of the offering in connection with the establishment and operation of its manufacturing facility in Malaysia, funding of its joint venture with Touch Point Worldwide Inc., which does business as Berify and Chemular Inc., and working capital and general corporate purposes, including research and development.

Roth Capital Partners acted as the lead placement agent for the offering. TFI Securities and Futures Limited acted as co-placement agent for the offering.

Michael Wang, the company’s CEO, shared his valuable business insights at September’s cannabis Benzinga event. Benzinga Cannabis Capital Conference returns to Florida this April, 16-17.

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Cannabis Is Fueling Ispire's Growth

Meanwhile, the company’s cannabis business vertical has been driving Ispire's profits for several quarters.

Ispire recently reported a 30.7% year-over-year increase in revenue to $41.7 million in the second quarter. Cannabis vaping products contributed $19.5 million to total revenue, representing a 149% year-over-year increase, while tobacco vaping products contributed $22.1 million.

First-quarter financial results published in late 2023 showed cannabis vaping products contributed $17.3 million to total quarterly revenue, up by 116.8% year-over-year, while tobacco vaping products contributed $25.5 million, representing a 34.8% year-over-year increase.

Moreover, the company is backing celebrities like Snoop Dogg and GRAMMY-Award winner Damini Ebunoluwa Ogulu, a.k.a. Burna Boy, who are now established names in the cannabis space.

This past December Ispire's Aspire North America, LLC., entered a five-year exclusive global manufacturing and distribution agreement with BrkFst, a lifestyle brand by Burna Boy, and his inner circle of young entrepreneurs.

Hempacco Co., Inc. (NASDAQ:HPCO), a manufacturer of hemp-based alternatives, cannabinoid smokables and rolling papers and a subsidiary of Green Globe International Inc. also landed a five-year exclusive manufacturing and global distribution agreement with Ispire's subsidiary last year.

Under the agreement, Aspire will distribute and commercialize Hempacco's branded cannabinoid and nicotine vapor products, namely Dogg Lbs by Snoop Dogg.

ISPR Price Action

Ispire's shares traded 27.91% lower at $5.85 per share at the time of writing on Friday morning.

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