The newest cannabis SPAC (special purpose acquisition corp.) Canna-Global Acquisition Corp. (NASDAQ: CNGLU) priced its initial public offering of $200 million and began trading on the Nasdaq Global Market on Tuesday using the ticker symbol “CNGLU”. The SPAC said it has not selected a business combination target or spoken to any companies about becoming the qualifying transaction. It did say in a statement that it will target a business addressing a large market opportunity with a company that is driving its growth in the medicinal cannabis or cannabinoid industry but only in a federally legal market.
The company is led by its Chief Executive Officer, J. Gerald (“Gerry”) Combs. Combs also serves as the CEO of CASH International Asset Management Ltd., a Hong Kong-headquartered asset management business. The SPAC’s chief financial officer is George Koi Ming Yap, who also runs the Sydney, Australia-based financial consulting firm KMYG Global. However, the company did state in its filing its plans to avoid targeting any businesses in Hong Kong or China.
Each unit consists of one share of the Company’s Class A common stock and one redeemable warrant entitling the holder thereof to purchase one share of Class A common stock at a price of $11.50 per share. Once the securities comprising the units begin separate trading, the shares of Class A common stock and warrants are expected to be listed on Nasdaq under the symbols “CNGL” and “CNGLW” respectively.
EF Hutton, division of Benchmark Investments, LLC, is acting as sole book-running manager for the offering. The company has granted the underwriters a 45-day option to purchase up to an additional 3,000,000 units at the initial public offering price to cover over-allotments if any. The offering is expected to close on December 2, 2021, subject to customary closing conditions.