The Viridian Capital Advisors Graph of the Week (shown below) projected cash levels for the largest MSOs. It concluded that robust capital raises had left the MSOs with significant cash positions that are likely to be utilized in M&A activity in the 2nd half of the year.
Largest Equity Raise: On July 22nd, 2021, Clover Leaf Capital (Nasdaq: CLOEU), a cannabis SPAC completed its IPO, selling 13.83 million units for $10 per unit. Each unit is composed of one share of common stock and a right to obtain 1/8 of a share upon completion of a successful qualifying transaction. The deal is a new twist on SPAC structure; most SPACS have included warrants for between ¼ and one share in their units. Clover Leaf is listing on Nasdaq and focuses on Cultivation Technology, Processing Technology, Testing Technology, and Consumer Goods Technology investments. Additional areas of interest for the company include Hemp and Specialty Finance companies. Given the restrictions imposed by its U.S. listing and the identified focus areas, we believe it is likely that Clover will need to bundle more than one acquisition in its de spacing transaction.