Cannabis Growth Opportunity Corporation, a cannabis industry focused investment management company, has filed its final prospectus for the proposed initial public offering (IPO) of up to 30 million units at $2.50 per unit for gross proceeds of up to $75 million.
The Canadian Securities Exchange (CSE) has conditionally approved the listing of the company’s common shares and warrants.
Toronto based CGOC Management Corp. will act as the manager and promoter and will provide all management services. Toronto based StoneCastle Investment Management Inc. will act as the investment manager with respect to the public portfolio.
Eight Capital, Canaccord Genuity Corp., Haywood Securities Inc., Mackie Research Capital Corporation, Beacon Securities Limited, PI Financial Corp. and Velocity Trade Capital Ltd., as agents, conditionally offer the units on a best efforts basis.
Blake, Cassels & Graydon LLP and Wildeboer Dellelce LLP acted as legal counsels to the company and the agents respectively.
Cannabis Growth Opportunity intends to invest 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 be invested primarily in publicly traded equity securities, may invest up to 40% of the total assets in private equity investments.
Cannabis Growth Opportunity expects to include the following companies in its initial public portfolio: Canopy Growth Corporation (TSX: WEED), MedReleaf Corp. (TSX: LEAF), Cannimed Therapeutics Inc. (TSX: CMED), Cronos Group Inc. (TSX: MJN), The Hydropothecary Corporation (TSX-V: THCX), Organigram Holdings Inc. (TSX-V: OGI), Supreme Pharmaceuticals Inc. (TSX-V: FIRE), DOJA Cannabis Company Limited (CSE: DOJA), Emerald Health Therapeutics, Inc. (TSX-V: EMC), Harvest One Cannabis Inc. (TSX-V: HVST), Maricann Group Inc. (CSE: MARI), and Village Farms International Inc. (TSX: VFF; OTC: VFFIF)
Aphria Inc. (TSX: APH), CannTrust Holdings Inc. (CSE: TRST), Friday Night Inc. (CSE: TGIF) which were included in the initial portfolio composition were not included.