A recent rise in cannabis special purpose acquisition companies – also known as SPACs – is providing private marijuana and hemp companies an unprecedented opportunity to raise money and go public. “Cannabis SPAC IPOs (initial public offerings) raised more than $2.6 billion (in 2019) and more than $700 million in the first half of 2020, as institutional investors recognized the opportunities to acquire distressed/discounted assets in the industry,” according to Scott Greiper, president and founder of Viridian Capital Advisors. SPACs, which have been around since the early 2000s, are so-called “blank check” entities created to bring private companies to the market. They have gained prominence since 2019, as well-known players such as billionaire William Ackman, former speaker of the U.S. House of Representatives Paul Ryan, and others have made big splashes in financial circles by bankrolling and launching SPACs.
Marijuana Business Daily, 09/25/2020 06:30:40