Mercer Park launches $125M cannabis SPAC IPO

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By Ted Liu

Cannabis Strategies Acquisition Corp. (CSAC), a newly organized special purpose acquisition corporation (SPAC) incorporated under the laws of the Province of Ontario, has filed for an initial public offering (IPO) of 12,500,000 Class A Restricted Voting Units at $10.00 per unit for gross proceeds of $125 million.

CSAC has granted underwriters an over-allotment option for additional 1,875,000 Class A Units at the offering price.

Cannabis Strategies Acquisition Corp. is sponsored by Mercer Park CB, L.P., an entity controlled by New York based Mercer Park LP, a privately-held family office controlled by CEO Jonathan Sandelman.

Mercer Park CB intends to purchase an aggregate of 250,000 Class B Units at an offering price of $10.00 per Class B Unit.

Canaccord Genuity Corp. acts as sole underwriter for the offering. Stikeman Elliott LLP acts as legal counsel CSAC and Mercer Park, and Goodmans LLP acts as legal counsel to the underwriter.

At or prior to the closing, Mercer Park CB, Kamaldeep Thindal (co-founder of Langley, BC based Core Capital Partners, formerly Hamza Thindal Capital Corp) and Charles Miles (Managing Director at Brooklyn, NY based Recapture Partners) will have purchased an aggregate of 3,662,109 Class B Shares (founders’ shares) for an aggregate price of $25,000.

Upon closing of the offering, Cannabis Strategies Acquisition will have $12.5 million Class A Restricted Voting Shares and 3,437,500 Class B Shares outstanding, or 14,375,000 Class A and 3,935,547 Class B shares outstanding, assuming full exercise of over-allotment option.

Mercer Park CB will own 3,420,098 Class B Shares.

Sandelman will serve as CSAC’s CEO, Chairman, Director and Corporate Secretary, with Miles and Thindal serving as two independent directors. Mark Smith, CEO of Green Cross Colorado, will serve as COO and Carmelo Marrelli, President of Woodbridge, Ontario based Marrelli Support Services Inc., serve as CFO.

photo credit: Cannabis Strategies Acquisition Corp.