Rritual Superfoods (CNSX:RSF) has now been accepted for listing on the Frankfurt Stock Exchange (FRA: ORW), the company reported late yesterday. This represents a cross-listing on the FSE and the Canadian Securities Exchange.
Rritual has only recently listed in Canada, but the shares saw immediate take up. The Armchair Trader added the stock to our pick list upon listing and we will be including it in our performance for March.
The fast-growing health supplements market
Rritual represents an interesting play in the fast-growing health supplements market, especially mushroom-based food supplements already prized by celebrities in show business and among high performance athletes. Take up among the masss market for such supplements is picking up quickly especially in the US and Canadian markets.
Rritual Superfoods said that the new listing would help with increasing trading liquidity and facilitate investment from European investors.
The company recently raised C$5m through a Canadian listing this month but has a valuation of around C$20m. It is focused on the development of a range of high quality branded food supplements that leverage the benefits of adaptogens. These are non-toxic herbs, roots and fungi that work to increase the body’s ability to resist stressors, helping it to function at optimum levels.
Organic mushrooms grown on oats and brown rice
Rritual uses organic mushroom mycelium grown on gluten-free whole oats and organic brown rice, and which are harvested from US mushroom farms. These produce bioactive compounds and metabolites that are found in the world’s greatest superfoods. Rritual specialises in what are called ‘functional mushrooms’ – fungi that play a part in the development of a healthy body and mind.
The superfoods already being manufactured by Rritual include chaga powder (which has been used to centuries to support the immune system), lion’s mane powder (which help to counteract the inflammatory response in the brain) and reishi powder (a mushroom powder that has been proven to help calm the nerves and relax the body and mind).
These foods form the core of the Rritual product line and are packaged and marketed as premium level food supplement products. The initial target markets are the US and Canada and the company has a co-packing agreement in place with Protein Research. It is pursuing a distribution strategy that is split between online sales and bricks and mortar in its main target markets.
Rapidly growing global superfoods market
The global superfoods market was valued at $137bn in 2018 and is growing at a CAGR of more than 5% a year. Within superfoods, adaptogenics are forecast to grow by around 8.55% per year.
A number of factors are driving this, including an ageing population, innovations in food, more awareness of what goes into foods and new medical discoveries. There are also growing concerns in core developed markets about problems with poor health, like obesity, and many consumers are drifting away from reliance on traditional solutions like pharmaceuticals, as these are failing to deliver the right results.
The Frankfurt Stock Exchange is the world’s third largest organised exchange-trading market in terms of turnover and dealing in securities. It is the largest stock exchange in Germany.