Canaccord Genuity sets sights on acquiring cannabis business with value of $100 million to $1 billion

Angela Stelmakowich - thegrowthop.com Posted 6 years ago
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Canaccord Genuity Growth II Corp. is looking to beef up its complement of cannabis-related businesses with the move to file a preliminary prospectus for an initial public offering (IPO) as a newly organized special purpose acquisition corporation (SPAC).

 

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“The preliminary prospectus (which is still subject to completion or amendment) has been filed with the securities regulatory authorities in each of the provinces and territories of Canada other than Quebec,” reports a statement from the newly formed CGGC II, a SPAC incorporated under the laws of the Province of British Columbia to effect a qualifying transaction within a specified period of time.

The SPAC has been “formed for the purpose of effecting an acquisition of one or more businesses within a specified period of time,” the press release states. “The acquisition target is expected to be an operating business with an enterprise value between $100 million and $1 billion,” although “this may change based on the size of the offering,” the statement adds.

 

 

“CGGC II intends to focus our search for target businesses that are involved in cannabis production and/or distribution and/or related sectors,” the statement makes clear, but further adds that “we are not limited to a particular industry or geographic region for purposes of completing our qualifying transaction.”

The offering—completion of which is subject to the receipt of customary approvals, including regulatory approvals—is for Class A restricted voting units of CGGC II at an offering price of $3 per Class A Restricted Voting Unit, “the aggregate proceeds of which will be placed in escrow pending completion of a qualifying transaction by CGGC II and will only be released upon certain prescribed conditions,” the statement notes.

 

 

Each voting unit also includes a share purchase warrant, with each warrant entitling the holder to purchase one common share of CGGC II for a purchase price of $3.45, it adds.

The sponsor of CGGC II is CG Investments Inc. III, a wholly owned subsidiary of Canaccord Genuity Group Inc. and an affiliate of Canaccord Genuity Corp.

 

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