A California-based special purpose acquisition company (SPAC) raised $200 million in an initial public offering to target companies involved in the growing medical cannabis or cannabinoid industry.
Canna-Global Acquisition Corp. started trading on the Nasdaq on Wednesday under the ticker symbol CNGLU after offering 20 million units at $10 a share.
Each unit consists of one share of the company’s common stock and one warrant entitling the holder to purchase a share of stock at a price of $11.50.
“We seek to create a “best-in-class” multinational cannabis operator, operating across key markets globally, from cultivation to production and processing, productization, and sales and distribution,” the company said in a prospectus filed with the U.S. Securities and Exchange Commission on Nov. 30.
Canna-Global, which also will target ancillary cannabis businesses, said it won’t invest in a business that is in violation of the U.S. Controlled Substances Act.
SPACs, also known as blank-check companies, have become prevalent in recent years in the cannabis industry as a vehicle to go public quickly and acquire assets in growing markets.
In its prospectus, Canna-Global said it “hasn’t yet initiated any substantive discussions, directly or indirectly, with any business combination target.”
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The company’s chief executive officer is J. Gerald Combs, who also serves as CEO of Hong Kong-based Cash International Asset Management.
New York-based financial services firm EF Hutton managed the offering.
Canna-Global said it granted the underwriters a 45-day option to purchase up to an additional 3 million units at the initial public offering price to cover over-allotments, if any.