Cannabis SPAC Northern Lights Applies To List On Nasdaq, Aims To Raise $100M

A cannabis-focused special purpose acquisition company, Northern Lights Acquisition Corp has plans to list on the Nasdaq Capital Market, hoping to raise $100 million with its initial public offering.

The Denver-based company filed a registration and preliminary prospectus on Tuesday with the U.S. Securities and Exchange Commission in relation to its intentioned IPO. According to the filed Form-1, Northern Lights plans to issue 10 million units with a price of $10 per unit.

Each unit would consist of one Class A share and one half of a redeemable warrant. One full warrant would enable the holder thereof to buy one Class A share at a price of $11.50 per share.

Furthermore, the underwriters would be provided with a 45-day over-allotment option to buy extra 1.5 million units.

The company noted its sponsor, 5AK LLC, has agreed to buy a total of 475,675 placement units at a price of $10 per unit, for a total purchase price of $4.76 million (or $5.28 million with a complete over-allotment option). The placement units will be sold in a private placement that is scheduled to close at the same time as the offering.

Northern Lights, meanwhile, has applied to list its common shares, units, and warrants on the Nasdaq Capital Market under the ticker symbols ‘NLIT,’ ‘NLITU’ and ‘NLITW’, respectively.

“We believe we have the opportunity to create a compelling structure that will enable one or more target companies to go public, thereby accessing significant capital for both organic growth and acquisitions of synergistic and often undercapitalized assets,” Northern Lights wrote in its filing.

The company has two co-CEOs – 1) John Darwin, who is a co-founder and president of a retail cannabis franchiser One Cannabis Group, and 2) Joshua Mann, a co-founder and managing partner of Canada-based merchant bank Luminous Capital, and was previously an interim CEO of cannabis company Indvr Brands, according to Marijuana Business Daily.

Photo by Tim Foster on Unsplash