Is This the Next Big Cannabis IPO?
It may not be an opportune time for companies to go public, but don't tell that to former Canopy Growth (NYSE: CGC) CEO Bruce Linton. Linton is still involved in the cannabis industry through Vireo Health (OTC: VREOF), and he's also looking to make a much bigger splash with the launch of a new company called Collective Growth. Given the success he achieved in making Canopy Growth into an industry leader, investors may want to keep a close watch on his latest business.
On March 2, Collective Growth filed to list on the Nasdaq exchange. The company is looking to raise $150 million that it plans to offer through 15 million units priced at $10 each. If approved, Collective Growth would trade under the ticker symbol CGROU.
The company is eyeing the hemp and cannabidiol (CBD) markets. U.S. regulators legalized hemp-based CBD products federally through the passing of the farm bill in 2018. Linton's familiar with the opportunities in hemp-based CBD products, as Canopy Growth obtained a license to process and produce hemp in January 2019. It remains the Canadian-based cannabis company's best way to penetrate the U.S. market, where the federal government prohibits cannabis products with tetrahydrocannabinol (THC) levels in excess of 0.3%.
Source Fool.com