Go big or go home… Flow Water gears up for going-public transaction

Toronto-based Flow, which launched its first products in 2015, is planning a reverse merger, with the stock expected to be listed on the Toronto Stock Exchange in the first half of 2021. As part of the transaction, Flow is looking to raise a minimum of CAD$65m (US$52m), of which CAD $30m has been committed from existing shareholders as part of a non-brokered financing. The rest has been raised through a brokered private placement of subscription receipts.  

We’ve got 17.5m customers in North America today​,” said Reichenbach. “But 192m people are buying premium water, so there is a huge opportunity to expand and take this all the way, to build Flow into America’s #1 domestically-sourced and responsibly packaged beverage company.”

If you’re in the business of selling water – something that already comes out of the faucet in every home, albeit without the same taste profile – you’d also better be pretty good at marketing, something that Flow Water​ appears to be rather adept at if the number of celebrities that line their fridges with it is anything to go by.

Not the usual playbook

Historically, the playbook for a successful venture-backed beverage brand has been to “get to north of $100m and then a big guy would come along and buy you,” ​says Reichenbach, who had an epiphany at the Burning Man festival in Nevada in 2013 that got his entrepreneurial juices flowing (“When I left I just remember seeing this huge mountain of plastic bottles, and I thought there has to be a better way…”​​).

Read MoreGo big or go home… Flow Water gears up for going-public transaction