Cannabis Growth Opportunity Corporation (CSE: CGOC), a cannabis industry focused investment management company, has completed its proposed initial public offering, issuing 15,513,250 units at $2.50 per unit for gross proceeds of approximately $38.7 million. The company had planned to raise up to $75 million.
Cannabis Growth Opportunity common shares and warrants will commence trading on Monday January 29, 2018 on the Canadian Securities Exchange (CSE) under the symbols “CGOC” and “CGOC.WT”, respectively.
Cannabis Growth Opportunity’s investment objectives are to provide holders 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 company will seek to invest approximately 60% of its total assets in the Public Portfolio and 40% of its total assets in the Private Portfolio.
CGOC Management Corp. is the manager and promoter of the Corporation. StoneCastle Investment Management Inc. will act investment manager with respect to the public portfolio.
The syndicate of agents for the offering was led by Eight Capital and includes Canaccord Genuity Corp., Haywood Securities Inc., Mackie Research Capital Corporation, Beacon Securities Limited, PI Financial Corp. and Velocity Trade Capital Ltd.
Blake, Cassels & Graydon LLP and Wildeboer Dellelce LLP acted as legal counsels to the company and the agents respectively.