Canadian-based Cannabis Growth Opportunity Corporation filed a prospectus for an initial public offering (IPO) valued at C$75 million listing the companies it may invest in. The shares will be priced at $2.50.
According to a statement, “The Corporation’s investment objectives are to provide holders of Common Shares long-term total return through capital appreciation by investing in an actively managed portfolio of securities of public and private companies operating in, or that derive a significant portion of their revenue or earnings from, products or services related to the cannabis industry.”
The portfolio will be invested primarily in publicly traded equity securities, but may also invest up to 40% of the Corporation’s total assets in private equity investments. The Portfolio composition could vary over time, generally, though it will seek to invest approximately 60% of its total assets in public companies and 40% of its total assets in private names. Eight Capital will act as agent.
According to the IPO filing, these are some of the companies that are expected to be in the initial public portfolio: Aphria Inc., Canopy Growth Corporation, MedReleaf Corp., CannTrust Holdings Inc., Cannimed Therapeutics Inc., Cronos Group Inc., The HydropothecaryCorporation, Organigram Holdings Inc., Friday Night Inc., Supreme Pharmaceuticals Inc., DOJA Cannabis Company Limited, Emerald Health Therapeutics, Inc., Harvest One Cannabis Inc., Maricann Group Inc. and Village Farms International Inc. StoneCastle Investment Management
Inc. (the “Investment Manager”) will be responsible for all investment decisions for the public portfolio.
The private company portfolio plans to give access to “private investments which the corporation
believes will become liquid either by a public listing or through a disposition within 12-24 months
and which exhibit strong growth and the potential for profitability. The Corporation will be
responsible for all investment decisions for the Private Portfolio with Bruce Campbell, the
Corporation’s Chief Investment Officer, being principally responsible for the investment
management of the Private Portfolio.”