Manatt cannabis and CBD practice Leader Anita Sabine and capital markets and M&A practices Leader Thomas Poletti were quoted in POLITICO Pro on why cannabis companies are joining the special-purpose acquisition corporation (SPAC) craze. The publication reported that since November, there have been at least nine cannabis companies that have announced plans to go public via a SPAC. “It's just another alternative for them to be able to get the capital they need to survive,” Poletti explained.
Additionally, the publication noted that the still quasi-legal industry is not always able to secure traditional funding, and questioned whether SPACs would continue to proliferate the industry as cannabis companies gain greater access to traditional banking services. “The proliferation of these deals is really important because it reflects the increasing support, acceptance and legitimacy of the U.S. cannabis market,” Sabine explained. “I think we’ll continue to see these as an alternative option of investment in U.S. [companies].”
POLITICO Pro subscribers can read Poletti's full quote here, and Sabine's quote here.