SPAC Announces Plan to Acquire New Mexico Cannabis Company

BGP Acquisition Corp. agreed to acquire Craft 1861 Global.

BGP Acquisition Corp. (NEO: BGP.U) (OTCQX: BGPPF) (OTCQX: BGPAF), a special purpose acquisition company based in British Columbia, has agreed to acquire Craft 1861 Global Inc.

Under the agreement, BGP will provide Craft with a $100 million equity investment and a $100 million committed and undrawn credit line, which BGP is currently in discussions with investors to establish.

BGP will issue 430,000 proportionate voting shares (convertible into 43,000,000 subordinate voting shares) to Craft Global shareholders in upfront equity consideration, complemented by an earn-out of an additional 100,000 Proportionate Voting Shares (convertible into 10,000,000 subordinate voting shares) based on certain trading price milestones.

The transaction is expected to close in the fourth quarter.

Craft Global is a minority-led, U.S.-based health and wellness company. The company offers hemp-derived CBD products and operates a vertically integrated cannabis company in New Mexico under the banner 1861 Market.

Craft Global expects revenue to exceed $201 million in 2021, with an EBIDA of $72 million. After the transaction, the company’s pro forma market cap will be approximately $580 million.

This transaction is expected to serve as BGP’s qualifying transaction – a funding requirement for special purpose acquisition companies.

Following closing, BGP will continue to operate the business of Craft Global and intends to rename itself Craft 1861 Global Holdings. The new entity will remain a reporting issuer under Canadian securities laws, where BGP has reserved the symbols “HUMN” and “HUMN.WT.”

Robert Aranda, CEO of Craft Global, is expected to continue as the new company’s CEO.

Agrify

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