IPO Roundup: Blank check cannabis company Collective Growth stands alone this week in dreary IPO market

The Austin-based company doesn't have recent history on its side

Cannabis stocks dropping graphic
Collective Growth is planning to acquire companies that operate adjacent to the cannabis industry without being directly involved in production

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.

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

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