Two recently announced big SPAC deals, Silver Spike / Weedmaps and Subversive Capital Acquisition / Caliva+Left Coast+Jay Z, will bring these companies public soon.
Here is the link to my article at Marijuana Business Daily discussing the deals and the implications for the sector.
“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)
With the current prohibition on buying plant touching stocks in the US. Is there any indication about who bought into the subversive spac and will there be enough holders to vote the merger through?