Two recently announced big SPAC deals, Silver Spike / Weedmaps and Subversive Capital Acquisition / Caliva+Left Coast+Jay Z, will bring these companies public soon.
“SPACs pump hundreds of millions of dollars into US cannabis industry through acquisitions” at MJBizDaily, December 23, 2020″
The key conclusions:
- Subversive/Parent Co will have $565m cash and a public currency to consolidate California
- Subversive/Parent Co will increase competitive pressure, such as planning price pressure by passing vertical integration savings into lower prices on a value tier vape
- Silver Spike / Weedmaps will have $100 million for acquisitions
- Silver Spike / Weedmaps plans a new product bundle starting January 1, 2021, hopes to drive upsell of CRM and loyalty services, and plans targeted price increases on “premium listings”
- Two SPACs, Greenrose Acquisition and Merida Merger I, still have $280 million to deploy to the industry in the next year (August for Greenrose, November for Merida)