A Special Purpose Acquisition Corporation (SPAC) executive tells INN why SPACs offer investors a free preview into the cannabis world.
At the core, SPACs are an investment vehicle in which a company raises capital through an initial public offering (IPO) before any operations are determined. Once the total sum is raised the goal becomes for the company to go out, find and acquire an operating business.
SPACs have a time limit agreed with investors and if the company does not meet its end of the bargain, the money goes back to the investors.
Ceres has not completed its acquisition but Crouthers told INN the company is heavily interested in the US cannabis market.
The executive described SPACs, particularly those in cannabis, as a free look for investors interested in the market.
But Crouthers and Ceres are not newcomers to cannabis investments. In fact, Ceres will continue to invest through its holding company.
What Ceres will hope sets it apart is its attention to consumer and more directly the marketing of cannabis products to consumers.
“We brought on two different talent management firms to sort of open the top of the funnel in terms of consumer awareness, consumer access or finding creative ways to get in front of consumers.” Crouthers said.
As part of its public listing, Jos Schmitt, president and CEO of NEO, praised Ceres for a deep understanding of the cannabis industry’s evolution.
“Go-to-market efficiency and tailored client-service has driven our leadership in the Canadian SPAC space, and we believe this is just the beginning of an exciting year for SPAC transactions, not only in the cannabis sector but across many industries,” Schmitt said.
Crouthers told INN his company went with the NEO for its listing since the exchange has been a great partner for this investment model. The NEO has become a hub of sorts for cannabis SPACs.
The executive said there will be a day when US companies touching the cannabis plant will be allowed to list in US-based senior exchanges but at the moment that timeline didn’t align with the company.
“Even if you get your rescheduling in the US, our view is it’ll take several months for the exchanges to get ready to do that,” the SPAC executive said.
Listings in senior exchanges, like the NASDAQ or the New York Stock Exchange, are not currently permitted for cannabis companies operating in the US, given the federal restrictions of the drug. However, Canadian-based companies have secured these listings by maintaining a distance from any plant-touching business below the border.
The company reached the public markets just before the full effects of the COVID-19 pandemic took on the global markets, an aspect Crouthers said gave the firm a chance to become more efficient in its acquisition pursuit.
“I’m very excited about where we’re headed, but no, I don’t have an exact timeline yet on it,” he told INN.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
CanBud Distribution Corporation Closes 2M Second and Final Tranche of its Oversubscribed Private Placement Offering
CanBud Distribution Corporation (CSE: CBDX) (FSE: CD0) (“CanBud” or the “Corporation”) is pleased to announce that it has closed the final tranche of its oversubscribed non-brokered private placement for aggregate gross proceeds of approximately $4,730,000 (the “Offering”).
The Corporation issued a combined total of 39,409,346 units (each a “Unit“) at price of $0.12 per Unit, with each Unit comprised of one common share in the capital of the Corporation (each a “Common Share“) and one common share purchase warrant (each a “Warrant“). Each Warrant entitles the holder to purchase one additional Common Share at an exercise price of $0.22 within 24 months of the closing of the Offering (the “Warrant Term“), provided, however that if the closing price of the Common Shares on the Canadian Securities Exchange (the “CSE“) (or any such other stock exchange in Canada as the Common Shares may trade at the applicable time) is $0.25 or greater per Common Share for a period of five (5) consecutive trading days at any time after the closing date of the Offering, the Corporation may accelerate the Warrant Term such that the Warrants shall expire on the date which is 30 days following the date a press release is issued by the Corporation announcing the reduced warrant terms.
Thoughtful Brands Inc. (CSE:TBI)(FSE:1WZ1)(OTCQB:PEMTF) (the “Company” or “Thoughtful Brands) announces that the letter of intent with Franchise Cannabis Corp. (“FCC”), previously announced in January, has been terminated. The previously announced European joint venture with FCC will continue and allow the Company to launch and tailor its products to European consumer demands
In connection with termination of the merger transaction with FCC, the Company has agreed to pay FCC $100,000 in cash and to issue FCC 5,000,000 common shares of the Company at a deemed value of $0.05 per share. The common shares will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
Mergers and acquisitions (M&A) in cannabis space have helped boost the industry to new levels.
Strategic sale of non-core assets by Lobe adds non-dilutive capital and shareholder value
Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce, further to its press release dated February 23, 2021, that it has completed the sale to Ionic Brands Corp. (“Ionic Brands”) of Lobe’s non-core cannabis assets relating to Washington-based Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) held by Lobe’s subsidiary vendor, Green Star Biosciences Inc. (the “Transaction”).
Seattle Area Grocery Chain Metropolitan Market to Begin Carrying KOIOS and Fit Soda on March 22, 2021
Adding to its existing presence on the west coast of the United States, all five KOIOS™ flavours and all four Fit Soda™ flavours will be carried in Metropolitan Market stores beginning on Monday, March 22, 2021. Serving the Seattle-Tacoma area (population 3.87 million), Metropolitan Market is one of five chains under its parent firm Good Food Holdings, which has a total of 51 stores in California, Oregon, and Washington State.
Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that beginning on Monday, March 22, 2021, Koios’ entire line of canned beverage products will be sold at all locations of Metropolitan Market, an urban format supermarket chain in the Seattle-Tacoma area of Washington State. In Q1 2021, the Company announced multiple placements of its beverage products with regional grocers in markets on the west coast of the United States including Market of Choice in Oregon Jensen’s in Southern California and major natural grocery chain Sprouts Farmers Market which has a substantial west coast presence with over one third of its locations (360+ stores across 23 states) in California as well as Washington State 1 . The Company has also recently announced other developments relating to its expansion efforts being undertaken in 2021 such as an in-house beverage canning facility and distribution agreements with regional and national wholesale partners.