The Next $150 Million Cannabis SPAC (special purpose acquisition corporation) an Austin, Texas-based blank check company targeting the cannabis industry plans to raise $150 million in its IPO.
Cannabis SPACs will be one of the biggest, and most profitable, marijuana investing trends of 2020. SPACs, also known as “blank check” companies, are special investments that let entrepreneurs and successful investors raise money through a public offering and use the proceeds to acquire another company.
The idea is that the management team can find a business that has great assets or a great business model but may have been run poorly, buy it, turn things around, and give shareholders a healthy return.And what could be one of the biggest cannabis SPAC launches of 2020 is coming from a familiar name…
Bruce Linton Launches $150 Million Cannabis SPAC
Under former Canopy Growth Corp. (NYSE: CGC) CEO Bruce Linton, the Collective Growth Corp. is expected to launch any day now. On March 2nd, Collective Growth Corporation, which intends to trade its units on the NASDAQ with the symbol “CGROU”, filed an S-1 registration statement to raise $150 million by selling 15 million units that include shares at $10 with $11.50 warrants for 1/2 of a share. 52 days after trading commences, the company expects that the shares will begin trading with the symbol “CGRO” and the warrants with the symbol “CGROW”.