Cannabis SPAC BGP Debuts On NEO Exchange After $115M IPO

Special Purpose Acquisition Company BGP Acquisition Corp. BGP has gone public on the NEO Exchange.

The shares started trading Thursday following a $115 million initial public offering (IPO), which included the full exercise of an over-allotment option.

BGP is the ninth SPAC to list on the NEO Exchange.

“Backed by a solid management team with extensive cannabis investing, SPAC, and operating experience, combined with opportune timing in a rapidly growing market, we believe that BGP is ideally positioned for long-term success,” said BGP chair and CEO Ruth Epstein says.

Next Steps

The SPAC is on the hunt to acquire cannabis companies, or “market leaders with strong and credible management teams where opportunities exist for vertical or horizontal integration.”The search will focus — but not limited to — the U.S., which management believes has the best market opportunities.

“With recent political developments in the U.S. and unprecedented levels of support from the general public for cannabis legalization, the cannabis industry is ripe for explosive growth," NEO chief executive Jos Schmitt said. "BGP is well-equipped to capitalize on those developments, and as a leader in the Canadian SPAC market, NEO is excited to be a part of their journey.”

Courtesy image.