New Cannabis IPOs – Clover Leaf Prices $125M, Silver Spike Prices $150M

Two cannabis-related companies, Clover Leaf Capital and Silver Spike announced they are going public this week. 

Clover Leaf Capital Corp. CLOEU, a cannabis-oriented blank check company, announced on Monday the pricing of its initial public offering of 12.5 million units at a price of $10.00 per unit. The company was listed and started trading on the Nasdaq Capital Market under the ticker symbol “CLOEU” on July 20.

Under the offering, each unit comprises of one Class A share and one right to obtain one-eighth of one Class A share upon the consummation of the company’s original business combination. When the securities comprising the units start separate trading the shares will trade under the symbol “CLOE” and rights under “CLOER.”

Maxim Group LLC is acting as the sole book-running manager for the offering.

The Miami, Florida-headquartered company has provided the underwriters with a 30-day option to acquire 1.88 million units at the offering price to cover over-allotments if any. The offering is projected to close on July 22.

Silver Spike Follows With $150 Million IPO

Cannabis-focused investment company Silver Spike Investment Corp. announced Tuesday an initial public offering of 10.71 million shares with a price of $14.00 per share, pricing the offering at $150 million. The company applied to list on the Nasdaq Stock Market under the ticker symbol “SSIC.”

The underwriters will be provided with an option to buy up to an extra 1.61 million shares. The completion of the proposed offering is dependent on several factors, such as market conditions.

The New York-based company will be run by Silver Spike Capital, LLC, and will work on advancing risk-adjusted returns on equity for its shareholders. It will use the collected net proceeds from the offering to support its investments and for standard corporate practices.

Stifel, Nicolaus & Company, Incorporated and JMP Securities LLC are acting as joint book-running managers for the offering. Cantor Fitzgerald & Co., Oppenheimer & Co. Inc. and JonesTrading Institutional Services LLC are acting as co-managers for the offering.

Photo: Courtesy of Benjamin Brunner on Unsplash