SPACS have been a significant part of the cannabis landscape since the late 2017 IPO of Cannabis Strategies Acquisition Corp, now AYR Wellness.  

Twenty-three Cannabis SPAC IPOs have been completed for total proceeds of $4.24B:

Of these, 5 SPACs with original IPO proceeds of $920M acquired non-cannabis businesses ranging from Wine to Space.  

Eight representing initial IPO proceeds of $1.72B, merged with cannabis-related companies, and 10 representing original IPO proceeds of $1.60B are still either looking for deals ($1.2B) or have transactions pending ($.4B).

California competitors in the group have been harshly punished.  In the 11 months since its de-SPAC transaction TPCO (OTC: GRAMF) is down 85.5% ( 88% annualized). Similarly, Glass House Brands (OTC: GLASF) in the less than six months since its de-SPAC is down 65.7% (73% annualized). Ironically, TPCO and GLASF were the two largest IPOs on the list at $575M and $402.5M, respectively.

Most importantly, the most recent SPACs have had a less receptive market to use their stocks as acquisition currency.

The group's performance may help explain why the most recent SPAC IPO, Canna-Global had to use a whole warrant in its $230M IPO last week.

Episode 867 The #TalkingHedge looks at Viridian Capital Advisors chart of the week…

https://youtu.be/KghzWiEANvw

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