Joe Caltabiano's Cannabis SPAC Shuts Down, Gives Back Money

Former Cresco Labs CRLBF executive Joseph Caltabiano is closing his special purpose acquisition company (SPAC) Choice Consolidation Corp. CDXX CDXXF. The SPAC confirmed Friday that the company will be wound-up and that all its units, shares, and warrants will be automatically redeemed on or about August 16, 2022.

The company’s board of directors believes that the company will not be able to find and complete an appropriate qualifying transaction within the SPAC’s permitted timeline. Therefore, the board had concluded it is in the best interest of the company and its shareholders to wound up.

“While the creation of the legal and regulated cannabis industry presents the opportunity to harness growth potential of a burgeoning industry, the current shifting market conditions and partisan political gridlock have made our current pathway too unpredictable,” Caltabiano, CEO of Choice Consolidation Corp. stated. “After careful review and consideration, we believe it is in the best interest of our shareholders to return their investments at a time when it can be better deployed in other vehicles. Our passion and confidence in the cannabis sector have not waned, and I look forward to unlocking future opportunities in the industry.”

Previously, the company managed to raise $172 million, and now it will return the money.

The redemption amount per Class A Restricted Voting Unit is anticipated to be U.S.$10.00. Each one-quarter of a Warrant forming part of a Class A Restricted Voting Unit will be redeemed for U.S.$0.10, and the remainder of the redemption price for such Class A Restricted Voting Unit will be payable in respect of the Class A Restricted Voting Share. Payment of the redemption amount, net of applicable taxes and other permitted deductions, will be made effective at the close of business on the Redemption Date and will constitute the company's final payment in respect of the liquidation of the escrow account that holds the proceeds of the company's initial public offering. There will be no distributions from the escrow account with respect to the company’s Class B shares or the 5,000,000 Warrants issued to the company’s sponsors concurrently with the closing of the IPO.

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