The company is also seeking to raise $100 million in the first year, which would be used to fund research and development of its cannabinoid-based products.

The whats a spac is an all-male cannabis space that plans to raise $100 million in its initial public offering.

FINANCIAL-Latest-Cannabis-All-Male-SPAC-To-Raise-100-Million

 

Achari Ventures Holdings Corp., the newest cannabis SPAC, announced the pricing of its first public offering of 10,000,000 shares at a price of $10.00 per unit on Friday. Beginning October 15, 2021, the units are scheduled to be listed on the Nasdaq Global Market and trade under the ticker code “AVHIU.”

Vikas Desai, Chief Executive Officer and Chairman of the Board of Directors; Mitch Hara, Chief Operating Officer and Chief Financial Officer; and Merrick Friedman, Chief Investment Officer and Director, lead Achari Sponsor Holdings I LLC, a subsidiary of Achari Ventures. Mark Pelson, Seth Farbman, Kevin K. Albert, Harry DeMott, and Tim Seymour make up the remainder of the all-male squad. The cannabis business will be Achari Ventures’ primary emphasis, according to the company. From 2019 to 2020, Hara served as the Head of Mergers & Acquisitions and Business Growth at Clever Leaves International, Inc. (previously known as Northern Swan Holdings) (NASDAQ: CLVR), where he was in charge of the company’s investments, acquisitions, and business development.

“Our team was an early and active player in the cannabis sector, having seen its enormous potential for explosive development early on,” stated Vikas Desai, Achari’s Chief Executive Officer. “We think there is a once-in-a-lifetime opportunity to collaborate with an established and successful firm in the sector, using our capital, industry, and operational experience to quickly expand its business as the cannabis legal environment evolves,” says the company.

Achari, like other SPACs, will be on the lookout for acquisition possibilities in the cannabis industry’s auxiliary (non-plant touching) sectors, such as equipment, hardware, technology/software, or hydroponics. They’re seeking for a business with a minimum revenue of $50 million and a clear route to $200 million in five years. In its SEC filing, the organization also said that the smaller size of the SPAC is preferable since the bigger size has a restricted number of targets.

One share of common stock and one redeemable warrant are included in each unit. Each entire warrant allows the holder to buy three-quarters of a share of common stock for $11.50 per share. Only a number of warrants in multiples of four may be exercised at any one moment since the warrants may only be used for whole quantities of shares. The Company anticipates the common stock and redeemable warrants to be listed on the Nasdaq under the symbols “AVHI” and “AVHIW,” respectively, once the securities that make up the units begin trading independently.

Chardan is the only book-running manager on the team. The Company was represented by Reed Smith LLP, while Chardan was represented by White and Williams LLP. To address over-allotments, the business has given the underwriters a 45-day option to buy up to an additional 1,500,000 units at the original public offering price.

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