Marijuana SPAC Achari Ventures goes public in $100 million IPO

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Achari Ventures Holdings Corp. I, a special purpose acquisition company (SPAC) formed to acquire non-plant-touching marijuana companies, went public on the Nasdaq Global Market.

The newly organized blank check company priced its initial public offering of 10 million units at $10 per unit for a raise of $100 million.

The units began trading on the Nasdaq on Oct. 15 under the ticker symbol AVHIU.

“The company’s initial focus will be on identifying acquisition opportunities with an ancillary, non-plant touching company operating in the cannabis industry, including equipment, hardware, technology/software, or hydroponics,” the SPAC said in a news release marking its first day of trading.

According to the release, the company is sponsored by Achari Sponsor Holdings I, which it describes as an affiliate of Achari Ventures.

Achari is led by CEO and Chair Vikas Desai.

“Our team has been an active and early participant in the cannabis industry, having identified, early on, its significant potential for explosive growth,” Desai said in the release announcing the IPO.

“We believe a unique opportunity exists to partner with an established and successful company in the space, leveraging our capital, industry and operating expertise to rapidly scale its business as the cannabis regulatory environment matures.”

Each unit consists of one common share and one warrant.

Each warrant entitles the holder to purchase three-quarters of one common share at a price of $11.50 per share.