Chicago-based cannabis multistate operator PharmaCann reportedly intends to go public in the fall with an initial stock offering that could be valued at more than $1 billion.
PharmaCann, which has operations in six states in the eastern half of the U.S., has “confidentially” started the paperwork with securities regulators for an IPO with a likely plan to list its shares on the Canadian Securities Exchange and the U.S. over-the-counter markets, Reuters reported Monday.
According to the report, PharmaCann wants to raise capital in advance of New York launching its recreational marijuana market.
“We have no comment on this anonymous report by Reuters,” Jeremy Unruh, PharmaCann’s senior vice president of public and regulatory affairs, wrote in an email to MJBizDaily.
PharmaCann is one of 10 medical marijuana operators in New York. The company also has operations in Illinois, Maryland, Massachusetts, Ohio and Pennsylvania.
PharmaCann was poised to be acquired in 2018 by Los Angeles-based MedMen Enterprises in a $682 million all-stock deal, but the transaction collapsed a year later.
The development of New York’s adult-use market has fallen months behind under scandal-ridden Gov. Andrew Cuomo, who resigned last week amid allegations of sexual harassment and assault.
While industry experts believe that the incoming governor, Kathy Hochul, is more supportive of adult-use legalization, it remains unclear whether cannabis will be one of the former lieutenant governor’s top priorities and whether she can act quickly enough to prevent further delays.
A key step is Hochul appointment a chair of the Cannabis Control Board. But the appointment needs to be approved by the state Senate, which isn’t in session.
Any fast-tracking of an adult-use marijuana program likely would benefit existing MMJ operators such as PharmaCann, industry experts said.