Cannabis SPAC Northern Lights Acquisition seeks to raise $100M in IPO

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Northern Lights Acquisition Corp., a special purpose acquisition company (SPAC) with an eye on the cannabis industry, is trying to raise $100 million for acquisitions or other business combinations by going public, according to a registration statement and preliminary prospectus filed with the U.S. Securities and Exchange Commission.

The Denver-headquartered blank-check company was formed in Delaware in February.

Northern Lights intends to issue 10 million units at $10 per unit through the IPO, according to the prospectus.

Each unit includes one common share and half of a redeemable warrant. Full warrants can be exercised to purchase one common share at $11.50 per share.

An over-allotment option would allow the underwriters to purchase up to 1.5 million more units.

The SPAC said it has applied to list its units, common shares and warrants on the Nasdaq Capital Market under the ticker symbols NLITU, NLIT and NLITW, respectively.

“We believe we have the opportunity to create a compelling structure that will enable one or more target companies to go public, thereby accessing significant capital for both organic growth and acquisitions of synergistic and often undercapitalized assets,” Northern Lights said in its filing.

“We believe that the growing legislative adoption and cultural normalization of cannabis creates a unique opportunity to invest in capital constrained businesses in defensible positions.”

Northern Lights listed two co-CEOs, John Darwin and Joshua Mann.

Darwin was a co-founder and president of One Cannabis Group, a retail cannabis franchiser recently acquired by Item 9 Labs.

He remains Item 9’s vice president of corporate development and is also a co-founder and managing partner of Canada-based merchant bank Luminous Capital.

Mann, also a co-founder and managing partner of Luminous Capital, previously served as interim CEO of cannabis brand company Indvr Brands.