The IPO landscape is barren again this week as US markets continue to plummet. Just one company is primed to enter the fray.
Collective Growth Corp (NASDAQ;CGROU), an Austin, Texas-based blank check company targeting the cannabis industry, plans to raise $150 million in its IPO.
The company expects to offer 15 million shares at a price of $10 per share.
Collective Growth plans to target business operating within the federally permissible cannabinoid industry in the US, with a particular focus on companies that operate adjacent to the industry without being directly involved in production.
A sector up in smoke
Cannabis stocks have struggled as of late.
Sundial Grower Inc (NASDAQ:SNDL), fell to $0.07 Monday, IPO research firm Renaissance Capital noted, down more than 99% from its IPO price of $13 per share in July.
Of the seven cannabis special purpose acquisition companies that have held IPOs since 2018, the firm reported, only Akerna Corp (NASDAQ:KERN) has made an acquisition. Akerna hit $4.40 on Monday, 56% below its IPO offer price of $10.
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