Cannabis-Focused SPAC Choice Consolidation Goes Public On NEO, Raises $150M

Cannabis-oriented SPAC Choice Consolidation Corp. CDXX raised $150 million in its initial public offering.

Choice confirmed it has closed its IPO of 15 million class A restricted voting units at a price of $10 per unit, for total proceeds of $150 million.

The Chicago-based corporation provided the underwriters with a 30-day option to buy up to an extra 2.25 million class A restricted voting units, with a price of $10 per unit, for proceeds of up to $22.5 million.

The collected proceeds from the offering were placed into an escrow account, to be released under specific conditions.

The underwriters for the offering were Canaccord Genuity Corp. and Beacon Securities Ltd.

Each class A restricted voting unit consisted of a class A restricted voting share and one-quarter of a share purchase warrant of the corporation. Each warrant enables the holder to buy one class A restricted voting share at a price of $11.50.

The class A restricted voting units will begin trading Friday on the NEO Exchange under the ticker symbol "CDXX.UN.U"

"We are thrilled to make our public market debut on the NEO Exchange as we begin our next phase of effecting our qualifying transaction with a focus on US cannabis acquisitions," CEO  Joe Caltabiano said.

Caltabiano is the co-founder and former president of Cresco Labs Inc. CRLBF.

"As a senior listing exchange, NEO has established itself as a leading platform for special purpose acquisition companies. We chose to partner with them due to their stringent listing requirements, which we believe provide increased transparency to both retail and institutional investors."