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Highlights
- PharmaCann is one of the few medical pot operators in New York. It also has operations in five other states in the US.
- PharmaCann is reportedly in talks with Canadian investment bank Canaccord Genuity for its plans to go public.
- PharmaCann was supposed to be acquired in an all-stock deal worth US$ 682 million by MedMen Enterprises in 2018. However, the deal had eventually collapsed.
Chicago-based integrated cannabis company PharmaCann is reportedly looking to go public this year and could value over US$ 1 billion at the time of its initial stock offering.
Notably, PharmaCann is one of the few medical pot operators in New York. It also has operations in five other states in the US.
The cannabis company could be aiming to go public soon as an IPO would enable PharmaCann to raise money before the US federally approves adult-use recreational cannabis.
Reports suggest that the company has started the paperwork with regulatory authorities for an IPO, although it is keeping its public debut plans confidential.
PharmaCann IPO plans: All you need to know
PharmaCann is reportedly interested in a dual listing of its common stocks. The multistate cannabis operator is said to be aiming for a debut on the Canadian Securities Exchange (CSE) and over-the-counter (OTC) markets in the US.
According to reports, PharmaCann is in talks with Canadian investment bank Canaccord Genuity, which is expected to become the lead underwriter for its initial public offering. More banks might be hired to become the underwriters, but no specific names were available at the time of writing this.
In March this year, New York became the 16th state in the US to legalize the sale of recreational cannabis. Due to this move, many companies are now looking to expand their operations and eyeing IPOs to raise capital and secure a position in the stock market.
Also Read: Nubank eyes $2B IPO: How to buy the fintech giant’s stock?
In June, Canadian pot firm Cronos Group Inc. (TSX:CRON) took a stake worth US$ 110.4 million in PharmaCann. At that time, it was valued at around US$ 1.1 billion.
If the IPO happens in the next few months, there is a chance that PharmaCann would have a higher valuation.
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In the last few months, PharmaCann got multiple offers for takeovers, including merger offers from special purpose acquisition companies (SPACs).
PharmaCann was supposed to be acquired in an all-stock deal worth US$ 682 million by MedMen Enterprises in 2018. However, the deal had collapsed a year later.
How to buy PharmaCann stock?
If you are a Canadian investor interested in PharmaCann’s stock, you can get a hold of the shares once the company lists its shares on the CSE.
Alternatively, you can get in touch with a brokerage company that offers pre-IPO shares once the public debut plans are finalized.
Also Read: Authentic Brands IPO: How to buy ABG stock?
Bottomline
The global legal cannabis industry is growing rapidly, and companies involved in the cultivation and distribution of cannabis are expected to grow in future.
A study held by Grand View Research found that the worldwide pot industry is expected to register a compound annual growth rate (CAGR) of 26.7 per cent by 2028.
